Blinkit, Swiggy, Zepto, Flipkart Minutes captured around 50% Kirana sales in India, may touch Rs 332000 crore business by…
GH News November 15, 2024 01:06 AM
In a remarkable development indicating a major consumer shift towards preferring the convenience of groceries being delivered at their doorstep nearly 50% Kirana sales in 2024 were captured by quick commerce companies with Blinkit Zepto Swiggy Instamart and Flipkart Minutes emerging as top platforms.
According to a survey by Datum Intelligence 46 percent consumers who were surveyed reported cutting down purchases from traditional Kirana shop preferring the convenience of last-minute grocery deliveries at their doorstep. Nearly half (46 per cent) of respondents report reduced spending at Kirana shops indicating a shift in customer behavior towards quick commerce platforms the report said adding that the quick commerce market size is expected to reach $40 billion by 2030 a jump from $6.1 billion in 2024
As per the report quick commerce platforms are projected to capture approximately $1.28 billion of Kirana sales by 2024 accounting for 21 percent of total sales on these platforms.
The report noted that the focus on speed and convenience by quick commerce platforms aligns with consumers needs for efficient on-demand grocery shopping experiences and plays a major role in the adoption of online grocery.
Unplanned purchases increased
The report by Datum Intelligence also revealed that about 75 percent customers have increased their unplanned online grocery purchases in the past six months with a majority of them spending over Rs 400 per order. The increased confidence in receiving grocery items within 10 minutes through quick commerce platforms has led to a surge in unplanned purchases.
Further the study revealed that on average online grocery orders are significantly higher that ones made at traditional stores highlighting the consumers preference for speed and convenience offered by quick commerce companies which is boosted by platforms ability to provide competitive pricing by eliminating multiple intermediaries that traditional retail relies upon.
Traditional Kirana stores face existential threat
The study observed that due to the rising popularity of quick commerce Kirana stores which historically dominated Indias grocery market are now facing an existential threat evident from the fact that over 82 percent of consumers have shifted at least one-fourth of their grocery spending from Kirana stores to quick commerce platforms.
Quick commerce has witnessed an unprecedented pace of adoption significantly influencing consumer behaviours across the retail ecosystem. It is projected to experience a 74 per cent growth in 2024 positioning it as the fastest-growing channel during the 2023-28 forecast period with a 48 per cent compound annual growth rate (CAGR) the report said.
Quick commerce which began with the delivery of groceries and essential items has now expanded to include a diverse range of products. This includes electronics clothing cosmetics household goods medicines pet supplies books sporting equipment and more.
(With PTI inputs)