Quick commerce platforms are significantly impacting the Fast-Moving Consumer Goods (FMCG) sector in India, fueling a substantial portion of online sales. These platforms, which offer rapid delivery services, are becoming almost indispensable for large packaged goods companies.

The Rise of Quick Commerce

Quick commerce platforms like Blinkit, Zepto, Instamart, and BBnow are instrumental in connecting brands with India's digital consumers. These services provide convenience and speed, catering to consumers who need products delivered quickly. The rapid growth of quick commerce has led major organizations to recruit dedicated key account managers to strengthen relationships with these ventures.

Impact on FMCG Sales

Quick commerce now accounts for a significant percentage of FMCG companies' e-commerce revenue. Industry data indicates that quick commerce fuels one-third of India's ₹9,800 crore online FMCG sales. This demonstrates the increasing importance of these platforms in the online FMCG landscape.

Several major FMCG companies have seen substantial contributions from quick commerce. For example, a Nestle India spokesperson revealed that quick commerce contributed 60% of their domestic e-commerce sales in the September 2024 quarter. ITC Limited has also experienced rapid growth in this area, with quick commerce sales increasing 50% year-on-year and contributing half of their total e-commerce sales.

Festive Season Boost

The festive season is a critical period for FMCG sales in India, and quick commerce platforms are gearing up to meet the increased demand. Quick commerce GMV (gross merchandise value) is expected to be ₹11,000-12,000 crore during the 30-35 day festive period. To handle this surge, these platforms are planning significant supply chain ramp-ups and scaling up festive-oriented hiring. It's estimated that quick commerce deliveries will double to 10% of total e-commerce during this festive season. Quick-commerce firms in India anticipate increasing their temporary staff by up to 60% for the festive season. Approximately 80,000 to 100,000 workers are expected to be hired for quick commerce business alone this festive season.

Rural vs. Urban Dynamics

While quick commerce is making significant strides, it's important to consider the dynamics between rural and urban markets. Recent data indicates that rural India continues to outpace the urban market in volume growth. However, urban markets are driving premiumization trends that reshape category profit pools. FMCG brands are adapting their strategies to cater to both value-conscious rural buyers and urban shoppers seeking premium experiences.

Challenges and Opportunities

Despite the rapid growth, e-commerce, including quick commerce, still accounts for a relatively small percentage of total sales for many FMCG companies. For instance, one industry expert noted that e-commerce accounts for less than 10% of total sales for these companies. Britannia Industries also reported that Q-com and e-com together make up just 4% of their revenue, with 96% still coming from their traditional distribution channels.

However, quick commerce offers unique opportunities for FMCG brands. It enables them to reach premium consumers in specific areas and address declining urban market challenges. Established FMCG companies often allocate a portion of their sales to quick commerce platform advertising, while newer brands may face higher promotional costs.

Looking Ahead

Quick commerce has become almost indefensible for large packaged goods companies. Although still at a smaller base, the platform is experiencing rapid growth as consumers use it for last-minute purchases. As the Indian e-commerce market continues to evolve, quick commerce is expected to play an increasingly important role in driving FMCG sales and shaping consumer behavior.