“Quick Commerce Revolutionizes FMCG Sales in India, Boosting Growth for Major Brands”
Quick commerce is rapidly reshaping the way India’s fast-moving consumer goods (FMCG) companies approach e-commerce and distribution. This fast-paced delivery model is becoming a vital part of many FMCG brands’ strategies, answering the growing demand for speed and better accessibility among urban consumers. As e-commerce continues to evolve in India, platforms offering swift deliveries are bridging the gap between consumer needs and product availability.
These quick commerce platforms, such as Blinkit, Zepto, Instamart, and BBnow, are now central to many FMCG brands’ success stories, accounting for a significant 35% of FMCG companies’ total e-commerce revenue. This percentage marks a substantial shift in how online sales are conducted, offering both convenience and greater reach to India’s digitally inclined audience. As this sector grows, there’s been a strategic move within FMCG companies to hire dedicated managers who can strengthen their partnerships with these fast-commerce platforms, ensuring smooth operations and continuous market presence.
One major player in the FMCG industry, Nestle India, has recognized quick commerce as a powerful sales driver. During the September 2024 quarter, quick commerce accounted for a noteworthy 60% of their domestic e-commerce sales. Iconic brands such as Kitkat, Nescafe, Maggi, and Milkmaid are thriving in this rapidly expanding delivery model. To date, Nestle India has made around 90 to 120 stock-keeping units (SKUs) available across these platforms, ensuring broader product reach for consumers.
Similarly, Kenvue, which split from Johnson & Johnson in 2022, has enjoyed substantial growth thanks to this fast delivery model. With essential health and skin care products like Stayfree, Neutrogena, and Listerine, Kenvue has strategically partnered with leading quick commerce platforms. These collaborations have made the brand’s products easily accessible to a large base of health-conscious consumers. In fact, one-third of Kenvue’s digital sales now come through quick commerce, a channel that is growing twice as fast as traditional online retail.
ITC, another giant in the FMCG industry, has also reported significant growth with quick commerce. The company’s year-on-year sales have jumped 50%, with quick commerce now contributing a substantial half of their e-commerce sales. This upward trend underscores the growing importance of these platforms for FMCG brands seeking rapid growth and consumer reach in urban markets.
In terms of product availability and logistics, quick commerce platforms tend to hold larger inventories than traditional kirana stores. For instance, BigBasket’s BBNow division categorizes FMCG products according to specific use cases, ensuring fast access to items ranging from soaps to personal care products like hand wash and face wash. FMCG products are making up 60% of their total sales, showing the sector’s weight in their overall business.
Although traditional retail stores like kiranas face stiff competition from quick commerce, brands like ITC are staying competitive by embracing an omni-channel model. Through innovative approaches such as creating customized stock-keeping units tailored for each specific channel, these companies remain relevant in a quickly evolving marketplace.
Despite the significant role of quick commerce in addressing the rapid demand for FMCG products, it still represents a smaller portion of the overall sales in the FMCG industry. According to analysts, e-commerce still accounts for less than 10% of the total FMCG sales. However, its impact on urban markets cannot be overstated. It’s not only opening new pathways for customers to access goods quickly but also allowing FMCG brands to target premium consumers in select high-demand areas.
The rise of quick commerce in India has created opportunities for FMCG giants to reach their audience faster while facing less competition from emerging direct-to-consumer brands. Additionally, large companies enjoy lower commission rates for platform advertising compared to newer or smaller brands, which face higher promotional costs.
In this rapidly changing market, quick commerce platforms continue to demonstrate their importance in shaping the future of FMCG sales in India. Their ability to provide fast delivery, large inventories, and targeted marketing strategies allows them to thrive in this ever-evolving digital economy.
