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Time of India
a day ago
- Business
- Time of India
‘Q-Comm Cos Preying on Other Retail Channels to Drive Growth'
HighlightsOnly 6–8 per cent of sales on quick commerce platforms are truly incremental, with most growth occurring at the expense of modern trade and ecommerce. Quick commerce platforms, such as Zepto, Blinkit, and Instamart, are generating limited new demand and are primarily taking market share from other sales channels. Despite quick commerce being the fastest-growing sales channel, it still accounts for only 3-6 per cent of overall sales for most consumer goods firms in India. Only 6–8 per cent of sales on quick commerce platforms are truly incremental, while most of the channel's growth comes at the expense of other formats—primarily modern trade and ecommerce, followed by local kiranas, according to a report by Kearney. This is despite supermarkets and ecommerce platforms offering the steepest discounts to shoppers—typically in the range of 13–18 per cent, compared to 6–9 per cent on quick commerce and 2–5 per cent on kiranas or general trade, said the report exclusively shared with ET. Industry officials agreed that platforms such as Zepto , Blinkit , and Instamart are generating little in terms of new or additional demand. 'Quick commerce is taking some share from marketplaces, they are taking some share from general trade," said Saugata Gupta , managing director of Marico, maker of Parachute oil and Saffola cooking oil. To reduce ' cannibalistic sales ,' the company needs to 'ensure that we have a tailor-made portfolio to drive offtake, and not just give price discounting,' he added. While quick commerce started off as a top-up service for last-minute purchases for groceries and small-ticket items, it is now the fastest-growing sales channel, especially for premium portfolios. The contribution of quick commerce to ecommerce sales has been doubling every year, although on a small base. It roughly accounts for between 3-6 per cent of overall sales for most consumer goods firms in the country.
Time of India
a day ago
- Business
- Time of India
Quick commerce growth cannibalising other retail channels, says Kearney report
Mumbai: Only 6-8% of sales on quick commerce platforms are truly incremental, while most of the channel's growth comes at the expense of other formats-primarily modern trade and ecommerce, followed by local kiranas, according to a report by Kearney. This is despite supermarkets and ecommerce platforms offering the steepest discounts to shoppers-typically in the range of 13-18%, compared to 6-9% on quick commerce and 2-5% on kiranas or general trade, said the report exclusively shared with ET. Industry officials agreed that platforms such as Zepto , Blinkit , and Instamart are generating little in terms of new or additional demand. "Quick commerce is taking some share from marketplaces, they are taking some share from general trade," said Saugata Gupta, managing director of Marico , maker of Parachute oil and Saffola cooking oil. To reduce "cannibalistic sales," the company needs to "ensure that we have a tailor-made portfolio to drive offtake, and not just give price discounting," he added. While quick commerce started off as a top-up service for last-minute purchases for groceries and small-ticket items, it is now the fastest-growing sales channel, especially for premium portfolios. The contribution of quick commerce to ecommerce sales has been doubling every year, although on a small base. It roughly accounts for between 3-6% of overall sales for most consumer goods firms in the country. Before the entry of quick commerce companies, only about one-third of shoppers in top metros favoured online platforms for their daily shopping. Today, 87% people in these cities shop online, highlighting a major consumer shift helped by convenience and instant gratification that quick commerce provides, the Kearney report noted. However, the shift is not consistent across all categories. "In the initial growth phase, food categories have seen the highest migration, with staples leading adoption-challenging the notion that quick commerce is primarily for top-up purchases," said Siddharth Jain, partner at Kearney. However, the shift in fresh produce is lower-indicating that consumers still prefer to handpick such items, he noted. "Adoption in categories such as personal care and electronics is also lower, likely because of the limited assortment offered by quick commerce platforms in their early stages." Kearney expects the quick commerce grocery market to grow threefold between 2024 and 2027, reaching about ₹1.5 lakh crore to ₹1.7 lakh crore and extending to all towns with a population of 500,000 or more by then. Consumer companies also expect the segment to continue its growth. "It's growing because there's a three-cornered fight between the three big players in that space," Varun Berry, vice-chairman of biscuits major Britannia Industries , told investors. "And I think there are certain categories where it even becomes 30% and 35%." The industry is largely controlled by Zepto, Zomato's Blinkit and Swiggy Instamart even as top ecommerce players including Flipkart and Amazon have entered the segment. Last week, Coca-Cola global chief operating officer Henrique Braun said India has accelerated tremendously in digitisation. "One of the things that was, to me, an eye opener as well, in terms of another channel that's developing here is the quick commerce that is very unique to India. It's accelerating... Every time I come in, it's bigger," he said. Earlier this year, Unilever global CEO Fernando Fernandez said he expects the channel to contribute 10-15% sales in India in the next three-four years, from 2-3% at present. "India is a very special place because richer Indians and poorer Indians live in close proximity that basically provide demand and supply of labour, making quick commerce a logical channel to grow," he said.
Time of India
2 days ago
- Business
- Time of India
Quick commerce growth cannibalising other retail channels, says Kearney report
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Only 6-8% of sales on quick commerce platforms are truly incremental, while most of the channel's growth comes at the expense of other formats-primarily modern trade and ecommerce, followed by local kiranas, according to a report by is despite supermarkets and ecommerce platforms offering the steepest discounts to shoppers-typically in the range of 13-18%, compared to 6-9% on quick commerce and 2-5% on kiranas or general trade, said the report exclusively shared with officials agreed that platforms such as Zepto Blinkit , and Instamart are generating little in terms of new or additional demand."Quick commerce is taking some share from marketplaces, they are taking some share from general trade," said Saugata Gupta, managing director of Marico , maker of Parachute oil and Saffola cooking oil. To reduce "cannibalistic sales," the company needs to "ensure that we have a tailor-made portfolio to drive offtake, and not just give price discounting," he quick commerce started off as a top-up service for last-minute purchases for groceries and small-ticket items, it is now the fastest-growing sales channel, especially for premium portfolios. The contribution of quick commerce to ecommerce sales has been doubling every year, although on a small base. It roughly accounts for between 3-6% of overall sales for most consumer goods firms in the country. Before the entry of quick commerce companies, only about one-third of shoppers in top metros favoured online platforms for their daily shopping. Today, 87% people in these cities shop online, highlighting a major consumer shift helped by convenience and instant gratification that quick commerce provides, the Kearney report noted. However, the shift is not consistent across all categories. "In the initial growth phase, food categories have seen the highest migration, with staples leading adoption-challenging the notion that quick commerce is primarily for top-up purchases," said Siddharth Jain, partner at Kearney. However, the shift in fresh produce is lower-indicating that consumers still prefer to handpick such items, he noted."Adoption in categories such as personal care and electronics is also lower, likely because of the limited assortment offered by quick commerce platforms in their early stages."Kearney expects the quick commerce grocery market to grow threefold between 2024 and 2027, reaching about ₹1.5 lakh crore to ₹1.7 lakh crore and extending to all towns with a population of 500,000 or more by companies also expect the segment to continue its growth. "It's growing because there's a three-cornered fight between the three big players in that space," Varun Berry, vice-chairman of biscuits major Britannia Industries , told investors. "And I think there are certain categories where it even becomes 30% and 35%." The industry is largely controlled by Zepto, Zomato's Blinkit and Swiggy Instamart even as top ecommerce players including Flipkart and Amazon have entered the week, Coca-Cola global chief operating officer Henrique Braun said India has accelerated tremendously in digitisation."One of the things that was, to me, an eye opener as well, in terms of another channel that's developing here is the quick commerce that is very unique to India. It's accelerating... Every time I come in, it's bigger," he this year, Unilever global CEO Fernando Fernandez said he expects the channel to contribute 10-15% sales in India in the next three-four years, from 2-3% at present. "India is a very special place because richer Indians and poorer Indians live in close proximity that basically provide demand and supply of labour, making quick commerce a logical channel to grow," he said.
Business Standard
2 days ago
- Business
- Business Standard
Marico forays into cold pressed oil segment
Marico announced its foray into the Cold Pressed Oils segment with the launch of the new Saffola Cold Pressed Oils range. This launch marks a strategic expansion of the Saffola Oils portfolio. With a legacy of over five decades in supporting heart health, Saffola's entry into the growing Cold Pressed Oils category is a natural extension of its expertise. Cold pressed oils are in growing demand as they retain the natural flavour, aroma, and nutrients of the seed due to their low-temperature extraction process, making them a wholesome addition to everyday meals. By leveraging its experience in multi-source edible oils, Saffola brings both single seed and dual seed cold-pressed variants to the market, carving a distinct space in this evolving category. The new Saffola Cold Pressed Oils range delivers a balanced blend of innovation and authentic taste with its Single Seed and Dual Seed options: Dual Seed Cold Pressed Oils: Groundnut & Sesame and Groundnut & Safflower blended to provide a good fatty acid balance while preserving rich flavour. Single Seed Cold Pressed Oils: 100% Groundnut, 100% Sesame, and 100% Mustard rich in essential fatty acids, and delivers authentic seed taste. Cold-pressed to preserve flavour, the range offers a balanced composition of monounsaturated (MUFA) and polyunsaturated (PUFA) fatty acids supporting everyday cooking that aligns with long term wellness and contains essential nutrients that support cholesterol management
Mint
15-05-2025
- Business
- Mint
Marico calls it—India's FMCG sector to rebound this financial year
New Delhi: Marico Ltd, the maker of Parachute hair oil and Saffola cooking oil, is optimistic India's fast-moving consumer goods sector will rebound this financial year as food prices finally show signs of easing and rural demand remains robust. Volume growth in India's FMCG sector is expected to be slightly higher in 2025-26 as overall demand is reasonably steady, although a dramatic recovery might not be immediate, said Saugata Gupta, managing director and chief executive officer, Marico. 'The consumption is a tad better than what gets reported as a summation of the listed companies in some way," Gupta said in an interview with Mint. 'Inflation is slowing down and urban consumption will improve. So overall volume growth for the sector is definitely going to be slightly higher than what it was last year. You might not get a dramatic recovery, but it will definitely be better than last year," she said. Also read | Marico's margin pain will linger for some time India's retail inflation rose 3.16% year-on-year in April, its slowest pace in over six years on the back of lower food prices. With consumer price index-linked inflation staying under 4% for three consecutive months, several economists expect the Reserve Bank of India's monetary policy committee to cut rates again in June, which, in turn, would spur overall consumption and economic growth. Food inflation eased to 1.78% in April from 2.69% in March, 3.75% in February, and 4.83% a year earlier, after having hovered at about 7% between November 2023 and June 2024. Gupta expects a combination of good monsoon rains, the government's focus on rural infrastructure, and minimum support prices for crops to bode well for rural demand. 'We expect rural demand to be steady. If there is a slight improvement in urban demand, which I foresee, overall volume growth for the (FMCG) sector this year will definitely be better than what it was last year," he added. Marico is confident of delivering double-digit revenue growth in the current fiscal year as well, helped by improving demand and distribution in rural and urban markets. The company also remains open to acquisitions that fit its adjacency criteria and address portfolio gaps, particularly in wellness, Gupta said. Also read | FMCG's mixed bag: Rural strength masks urban slump in latest quarter Inflation to soften in second half India's fast-moving consumer goods industry reported a 11% year-on-year value growth for the March quarter (the final three months of 2024-25), driven by a 5.1% volume increase and a 5.6% price hike, according to NielsenIQ, Mint reported on 8 May. While overall inflation is easing, high edible oil prices are keeping the basket of staples expensive, resulting in higher value growth. However, most consumer goods companies have signaled gradual improvement in urban demand going forward. Wholesale price index-based inflation eased to a 13-month low of 0.85% in April as food and energy prices softened. Earlier this month, Godrej Consumer Products Ltd said it is optimistic about demand packaged goods. 'We are bullish about consumer demand over the next 12 months for a variety of reasons," chief executive Sudhir Sitapati told media persons. 'The El Nino effect basically took up food prices in India last year. Food price inflation has an immediate impact on FMCG consumption. Now that El Nino has reversed, food price inflation has come down in the January-March period." Additionally, the Union government's decisions on lowering personal income tax and welfare schemes rolled out over the past year should start to bear fruit, he added. Also read | In charts: Retail inflation eases again, but signs of price pressures are there Marico, which sells edible oils, hair oils, and personal care products, faced inflationary headwinds as edible oil prices remained elevated in the second half of 2024-25. Gupta expects inflation to persist in the first half of this fiscal year due to the base effect from the previous year's price increases. However, he expects copra prices to start softening around the second quarter (copra is used in making coconut oil). 'Price inflation component will be much lower in the second half," he said. In the March quarter, Marico's revenue from operations grew 20% year-on-year to Rs2,730 crore, with underlying volume growth of 7% in the India business. Profit improved 7.8% to ₹345 crore. For 2024-25, Marico reported a 5% growth in volumes. Revenue from operations jumped 12.2% to ₹10,831 crore, reflecting the price hikes implemented by the company. 'Price hikes are mostly done. Inflation has been steadily moving down; crude oil prices are broadly stable. Obviously in the first half of the fiscal there will be inflation because of the base effect," Gupta said. 'As you know, both copra and edible oil prices started increasing significantly during the second half of the year. The first half will be inflationary, but copra will start softening sometime in quarter two." Also read | Demand slowdown puts FMCG's 'fast-moving' tag to test
