DBT Bureau
Bengaluru, 18 November 2024
Quick commerce in India is fast gaining market share in India. Customers, especially in metro cities, are opting to buy grocery items, beauty and personal care goods from quick commerce players like BigBasket, Blinkit, Instamart, and Zepto among others. This has sounded alarm for the retail stores or kiranas across the country. India has the highest shop-to-population density across the world. According to Invest India, the country is home to 1.3 crore kiranas or small retail stores. The retail sector is huge employer across the length and breadth of the country. However, the rise of quick commerce segment after the ecommerce has started to pose significant threat to this important sector.
Let’s understand, how the quick commerce is panning out in India and what are the reasons for such rapid growth?
Changing consumer behaviour:
During the COVID pandemic period, Indian consumers’ affinity towards ecommerce players rose. Ecommerce players like Amazon, Flipkart and Zepto among others provided much essential items despite mobility restrictions. Post COVID period, such dependence has come down for house hold items. However, rise of quick commerce has again seen faster adoption by consumers. As quick commerce firms deliver items quickly, say in 10 minutes or so; people are opting for faster delivery? People in metro are time-pressed, that is the reason that quick commerce is gaining momentum. As a result, many kiranas have seen drop in their sales. According to a report by Datum Intelligence, rise of quick commerce has adversely affected kirana sales with 46% quick commerce shoppers reducing their purchases from kirana stores.
Convenience & value:
Faster delivery is the key motivation behind consumers opting for quick commerce. However, pricing is another major reason. Many quick commerce players are giving discounts of items, making them attractive for consumers.
However, Indian kiranas have many advantages. For example:
Personal touch:
Indian kiranas are part of our social fabric. Retail stores are part of the community they cater to. Customers build personal relationship with kirana owners. This personal touch provides natural advantage to Indian kiranas as compared to digital commerce platforms.
Khata system:
Kiranas provide the option of buying now and pay after a few days. This khata system is prevalent across the country. Such facility is built on mutual trust between the kirana shop owner and customer. Such system can never be replicated by quick commerce players.
Partnership model:
Many large retailers like Reliance Retail are now planning to partner with kiranas for providing quick delivery of daily essentials. This can be a win-win for both large retailers and kiranas. Similarly, many companies including FMCG firms, financial services companies, payment firms, lending companies and others are partnering with kiranas for several business activities.
Therefore, kiranas will survive the present trend of quick commerce. It is also desirable that the government takes initiatives to protect small retailers from any unscrupulous business practices of ecommerce and quick commerce players.
