Quick Commerce Dominates Daily Essentials in India

In a recent report by Grant Thornton Bharat, it was found that quick commerce is the preferred method for purchasing daily essentials, with 85% of respondents choosing it for food and grocery shopping. Clothing and accessories lead e-commerce sales, capturing 75% of the volume. However, for high-value items, over 50% of people still prefer shopping in physical stores due to the tactile experience and quality assurance they offer.

Challenges for Traditional Stores

Despite their appeal for high-value purchases, traditional stores face challenges. About 38% of respondents noted a limited product range, and 37% cited higher prices as drawbacks. To address these issues, retailers are adopting hybrid models that combine the reliability of physical stores with the convenience of digital platforms. These models aim to enhance customer satisfaction by expanding product offerings, offering competitive pricing, and providing delivery options.

Regulatory and Operational Insights

The report highlights the impact of regulatory advancements like the Data Protection Act 2023, which ensures secure digital transactions. Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat, emphasized the shift in India's retail ecosystem towards balancing digital convenience with traditional quality assurance.

Quick commerce faces operational challenges, with delivery costs making up to 70% of gross margins on orders averaging Rs 300-500. The report suggests that Q-com and e-commerce platforms should focus on operational efficiency and sustainability. Leveraging AI-driven data analytics can improve inventory management and optimize delivery routes. Partnerships with local retailers can enhance hyperlocal distribution and reduce reliance on central warehouses.