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FMCG companies are betting big on quick commerce channels. This comes at a time when consumers are increasingly turning to platforms such as Blinkit, Zepto and Swiggy Instamart for not only their impulse purchases but also for regular planned purchases.
In a recent investor meet, Dabur India CEO Mohit Malhotra pointed out that nearly 25-30 per cent of the e-commerce sales are expected to come from quick commerce platforms by FY 25 for the industry. For Dabur India, the overall e-commerce channel’s contribution is pegged at about 9 per cent of the business.
“E-commerce and modern trade is assuming huge importance. Within the e-commerce space, quick commerce’s contribution is expected to be 25-30 per cent in two years. For instance, Zepto is growing at 200 per cent for us. All quick commerce platforms are doing exceedingly well for us,” Malhotra stated.
Packaged food companies such as Nestle India have also witnessed significant growth on quick commerce platforms in recent quarters.
Evolving consumer habits
Krishnarao Buddha, Senior Category Head, Parle Products said,“E-commerce now contributes 5 per cent to our sales and of this about 1.5 per cent comes from quick commerce platforms alone. Consumers are opting for quick commerce platforms for impulse purchases such as chocolates, salty snacks and ice-creams. But they are also shopping for more planned purchases such as bulk packs of packaged atta from quick-commerce platforms.”
Responding to a businessline query at an investor call, Gautam Kamath, Vice President - Finance, Procter & Gamble Hygiene and Health Care Ltd said,” “E-commerce is already contributing in double digits to our overall revenues but of course differs by category and the choice a business makes on the channels for each segment. In fact, we are also learning and seeing early wins on specific formats like quick commerce”
He added that this growth can be attributed to evolving consumer habits as consumers are shopping online to meet their needs instantly. Kamath also pointed out that the e-commerce channel is opening up new set of avenues to reach, target and engage consumers.
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