How Quick Commerce is Revolutionizing FMCG and E-Commerce?

According to a recent report, quick commerce is causing a major shift in the FMCG and e-commerce sectors.

Quick-commerce platforms like Blinkit, Swiggy Instamart, and Zepto are gaining popularity and are expected to drive a significant increase in the share of sales for major FMCG companies soon.

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The report suggests that larger FMCH brands can benefit from better margins on quick-commerce platforms compared to traditional e-commerce channels.

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Recently, quick-commerce platforms have contributed 1-2% of sales for major FMCH brands and 7-8% for smaller ones. However, this trend is expected to rise as more companies leverage the convenience and efficiency of these platforms.

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Companies like Nestle India, Parle Products, and Godrej Consumer Products have established the importance of quick commerce for their products. However, the rise of quick commerce could face the challenge to incumbent e-commerce platforms, especially in categories like beauty and personal care, packaged foods, and apparel. This has led to increased discounting by e-commerce platforms and offline retailers to compete.

At present, quick commerce is mainly concentrated in metros and tier 1 markets, but its expansion to tier 2 and tier 3 cities could further disrupt the sales of traditional and e-commerce companies in these areas.

To stay ahead, companies must innovate to facilitate faster ordering and deliveries, aligning with the convenience offered by quick-commerce platforms.

In summary, quick commerce is reshaping the FMCG and e-commerce landscape, prompting companies to rethink their strategies and adapt to the evolving consumer preferences and market dynamics.