Latest news with #SaugataGupta
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.
Time of India
23-05-2025
- Business
- Time of India
Coconut oil on the boil: Price hikes pinch users
MUMBAI: The humble coconut oil-a must-have product in almost every Indian household-may be the reason your grocery bills pinched you a bit more. Companies like Marico and Dabur collectively took close to 40% price hikes in coconut oil over the past 12 months due to high inflation in the category. Prices of commodities have more or less 'peaked', and any major price increases are unlikely to be passed on to consumers unless there's a 'black swan event', said Saugata Gupta, MD & CEO at Marico, who is betting on better volume growth for the FMCG sector this financial year. For Marico, which makes Parachute coconut oil, copra (from which coconut oil is derived) makes up a large share of its commodity basket. Copra prices soared by 40%-50% over the past year, pushing Marico to take nearly 30% price increases over the past 12 months, Gupta told TOI. Marico leads the coconut oil market with more than a 50% share, according to market estimates. Firms with a bigger play, like Marico, use copra to derive coconut oil, while some buy the oil directly from the market. Dabur took around a 10% price hike in the category in the past three to six months, stockist sources said. "We mitigated the impact of inflation through a mix of value engineering, cost-saving initiatives, and judicious price increases, keeping the competitive intensity in mind," said Ankush Jain, CFO at Dabur India. Coconut oil is on the boil globally, with prices hitting a record high. Earlier this month, the benchmark wholesale price for Filipino coconut oil delivered in Rotterdam rose above $2,700 a metric ton, about 200% higher than the 2000-2020 average, Bloomberg reported. Bad weather hit coconut production in Southeast Asia. The local consumer goods industry is contending with high input cost inflation in a few other commodities, such as cocoa and edible oils, as well. Crude, though, has been soft, giving some relief to firms. FMCG companies have also been struggling with a demand slowdown led by weak urban consumption, which firms hope will see revival going ahead, helped by easing food inflation. The biggest player, Hindustan Unilever (HUL), expects the first half of FY26 to be better than the second half of FY25. Marico's Gupta said that the industry will see better volume growth this FY. "Urban demand didn't deteriorate further. It's subdued but not stressful," Gupta said, adding that companies will have to continue premiumising to sustain growth even in a sluggish environment. "The extra disposable income that consumers will get through the tax breaks will be spent on upgrading and discretionary, not necessarily only staples," said Gupta.
Time of India
23-05-2025
- Business
- Time of India
Coconut oil on the boil: Price hikes pinch users
MUMBAI: The humble coconut oil-a must-have product in almost every Indian household-may be the reason your grocery bills pinched you a bit more. Companies like Marico and Dabur collectively took close to 40% price hikes in coconut oil over the past 12 months due to high inflation in the category. Prices of commodities have more or less 'peaked', and any major price increases are unlikely to be passed on to consumers unless there's a 'black swan event', said Saugata Gupta, MD & CEO at Marico, who is betting on better volume growth for the FMCG sector this financial year. For Marico, which makes Parachute coconut oil, copra (from which coconut oil is derived) makes up a large share of its commodity basket. Copra prices soared by 40%-50% over the past year, pushing Marico to take nearly 30% price increases over the past 12 months, Gupta told TOI. Marico leads the coconut oil market with more than a 50% share, according to market estimates. Firms with a bigger play, like Marico, use copra to derive coconut oil, while some buy the oil directly from the market. Dabur took around a 10% price hike in the category in the past three to six months, stockist sources said. "We mitigated the impact of inflation through a mix of value engineering, cost-saving initiatives, and judicious price increases, keeping the competitive intensity in mind," said Ankush Jain, CFO at Dabur India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Device Made My Power Bill Drop Overnight elecTrick - Save upto 80% on Power Bill Pre-Order Undo Coconut oil is on the boil globally, with prices hitting a record high. Earlier this month, the benchmark wholesale price for Filipino coconut oil delivered in Rotterdam rose above $2,700 a metric ton, about 200% higher than the 2000-2020 average, Bloomberg reported. Bad weather hit coconut production in Southeast Asia. The local consumer goods industry is contending with high input cost inflation in a few other commodities, such as cocoa and edible oils, as well. Crude, though, has been soft, giving some relief to firms. FMCG companies have also been struggling with a demand slowdown led by weak urban consumption, which firms hope will see revival going ahead, helped by easing food inflation. The biggest player, Hindustan Unilever (HUL), expects the first half of FY26 to be better than the second half of FY25. Marico's Gupta said that the industry will see better volume growth this FY. "Urban demand didn't deteriorate further. It's subdued but not stressful," Gupta said, adding that companies will have to continue premiumising to sustain growth even in a sluggish environment. "The extra disposable income that consumers will get through the tax breaks will be spent on upgrading and discretionary, not necessarily only staples," said Gupta. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
