Shivani Gera’s Post

I love quick commerce, but there’s another side. Someone is suffering. I’m not going to lie—like everyone, I am hooked on convenience and ease. Sometimes, even if I don’t need it, I want it in 15 minutes. That delight of getting a white tee, plant, or toy for my kid is unparalleled. But quietly, it’s impacting the backbone of our retail economy—kirana stores. Quick commerce has got serious scale:📊 -50%+ of buyers now place 5+ orders monthly on Q-commerce apps. -80% of Q-commerce customers have shifted at least 1/4 of their purchases online. It will dent offline retail (93% of India’s market):🔻 -200,000 kirana stores have shut down due to Q-commerce. -$1 billion in kirana sales is moving to these platforms. Kirana stores contribute 10% to India’s GDP and employ 8% of the workforce. Even the rise of supermarkets couldn’t dent their business model, but Q-commerce has managed to disrupt it. If you think about it, it’s a tech version of the same business and a direct replacement. The convenience of home delivery on an app and seamless checkout vs. making a call. And the ‘Khata’ or credit account is now via credit card or BNPL. I’ve spoken before about Q-commerce eating into Amazon and Flipkart’s pie, but those giants have deep pockets and can adapt. I can’t say the same about individual kirana stores. They don’t have the budgets to discount essentials, and they probably won’t be able to fight. I’m not sure I’ll stop ordering from quick commerce apps anytime soon, but I can’t help but think about what will happen to kirana store owners over time. Is there a way to integrate them into this story? #india #business #qcom #growth #trends

Who owns the Q-commerce race in India 💡? Yes, its Zepto. Zepto has been reportedly generating significant revenues, with some estimates (available in public domain) suggesting monthly revenues in the range of INR 150-200 Cr (about $18-24 Mn). Days back, the cofounders Aadit Palicha & Kaivalya V.'s platform took home a whopping $350 Mn, Zepto's third fundraise in just six months. Palicha in his interview, highlighted a few points those stood out. ➡️ Cost arbitrage: Relying on a super-meticulous execution & excellence approach, Palicha talked about how cost arbitrage proving a game changer in smaller cities, busting the #myth that #qcommerce is an urban phenomenon. Here, building a dark store, involving delivery professionals etc need less cost. Hence, the profitability per store incurs sooner than in metros. ➡️ Per store profitability than market share: The focus is on achieving per store profitability than capturing sizable market share or #profitability. He explained, achieving 1000 orders per day in cities including Vellore, Nashik, Kota etc takes lesser time than Mumbai. Because, people there don't get this wide range of 13, 000 to 14, 000 SKUs, hence, this popularity. ➡️ Disciplined investment: Zepto launched Zepto Cafe recently offering 10 Minutes food delivery options to Delhi, Bengaluru & Mumbai. And Palicha said they are investing hundred of crores in building this. To me its obvious that the platform is going to play its existing quick commerce customer base. Its no brainer, consumer who wants groceries within 10 minutes, would relish their evening snacks or breakfast coming along. So, yes, absolute brilliance over there 💪. ➡️ Quick commerce is not replacement for Kirana stores. We experienced it when #ecommerce had hit the consumption pattern. Now, its q-commerce that is taking the blame. However, my POV resonates what Plaicha explained. He said India's #grocey market has reached $46 Bn, hence if q-commerce is taking some $1 Bn, the rest $45 Bn is going to the Kirana store. So, no single business format replacing another. For complete & better insights you can tune into the interview; however I invite your thoughts in comments. Share what more is required in #qcommerce than execution, technology and excellence 😊. More so while we already have Flipkart Minute, Amazon is rolling out is q-commerce play "Tez" by end of next month. Its interesting to see how the q-commerce segment is shaping in coming times 🔥. #startupsuccess #onlinegrocery #lastmiledelivery #startupfounders #startupfunding #fundraise

#2cents FMCG, Electronics, Wedding Suits, Sportswear, Toys, Stationary... What Next? The rise of q-commerce is transforming how we shop, but its ripple effects are hard to ignore: 1. Urban Bias - Most gig jobs are concentrated in urban areas, potentially widening the rural-urban wealth gap. 2. Market Disruption - This shift centralizes wealth toward venture-backed tech companies while small retailers face declining revenues. 3. Investor-Driven Models: Q-commerce companies, heavily funded by VCs, centralize profits among founders and investors. This dynamic exacerbates wealth inequality as the profits are rarely redistributed locally. 4. Franchise-Owned Businesses: Q-commerce risks alienating franchise partners, eroding traditional business models, and creating friction with premium-to-mass-market brands. While q-commerce is undeniably a game-changer, unchecked growth could disrupt more than it innovates. What’s your take—innovation or overreach? Let’s discuss! #qcom #business #india #trends

Arjun Vaidya’s post highlights a crucial aspect of the evolving retail landscape—a topic that urges introspection for all of us. The convenience brought by quick commerce is undeniably transformative, providing unparalleled ease and speed in our busy lives. But like any significant innovation, its impact isn’t one-dimensional. The data shared about the decline of kirana stores paints a sobering picture. These family-run, community-rooted ecosystems have been pillars of India’s retail economy for decades. Beyond their economic contribution, they represent trust, local relationships, and resilience.As quick commerce scales, it raises an important question: can growth in one sector coexist with the survival of another? Can innovation and tradition integrate rather than conflict? The fact that supermarkets couldn’t disrupt kirana stores but tech-driven platforms are doing so tells us that adaptability is now a foundational requirement for businesses of all sizes, including these stores. It’s easy to stand by as consumers of innovation, but harder—and perhaps far more meaningful—to think of ways to preserve, adapt, or include traditional systems in new ecosystems. Can kirana stores leverage technology, partnerships, or local uniqueness to stay relevant in this fast-evolving space? Posts like these aren’t just a call for awareness but also an invitation for solutions. How can stakeholders in this ecosystem—entrepreneurs, technologists, policymakers, and consumers—work together to balance innovation with inclusivity? Let’s start the conversation.

True story Sir, but customers (consumers/brands) move towards greater value. Some points to substantiate: 1. The majority of the Qcom business still comes from Tier 1/State Capitals. It is a pain to take out the vehicle to make a trip to Kirana, find parking, and make a purchase of less than ₹1000. With the traffic stacking up the majority of the day and infrastructure progressing slowly, this is not changing. 2. Offline Channels have exploited the payment cycles to such an extent that brands want to scale online and via Qcom rather than MT or GT. Making the ASM visit thrice for a single follow-up, and on top of that asking to collect cheques from each shop (when the country is gungo about digital payments). This shift was inevitable. 3. Although Qcom channels charge a massive channel margin, if you combine what Super Stockist+Distributor+Retailer charge, it adds up to the same %. 4. It's easier to give consumer discounts on Qcom/Marketplaces than to manage an offline fleet of SOs and merchandisers. 5. The inventory management in offline channels is in shambles and has absolutely no transparency. What's happening with Kiranas isn't good, but this streamlining was long overdue. GT and MT have to get their act straight.

[Published in July 2024] 🛒 India's quick commerce sector is booming, with companies like Zepto, Blinkit, and BigBasket focusing on 15-minute delivery of groceries and other products. 💰 The segment is expected to reach US$6 billion in gross merchandise volume by 2025, driven by consumer preference for instant services and quality over discounts. 🚀 Quick commerce companies are exploring new categories beyond groceries, including home appliances and fashion, and are looking to tap into advertising revenue.

Quick Commerce: A Growing Threat to Traditional Retail Quick commerce is rapidly gaining ground in India, but its rise is posing serious challenges for traditional kirana stores. As of July 2024, Blinkit dominates with a 40-45% market share, followed by Swiggy Instamart at 20-25%, Zepto at 15-20%, and BB Now at 10-15%. While Blinkit’s revenue surged to ₹942 crore in June 2024, and Zepto raised $340 million, pushing its valuation to $5 billion, these successes are putting immense pressure on small retailers. Traditional kirana stores, long the backbone of India’s retail sector, are struggling to compete with the convenience, speed, and variety offered by quick commerce platforms. These stores are seeing declining foot traffic and shrinking sales as more consumers opt for online shopping. Quick commerce grew 230% between 2021 and 2023, with the market expected to reach $6 billion by 2025. But as companies like Blinkit and Zepto expand, traditional retailers face an uncertain future. The rapid shift towards online shopping is creating an uneven playing field, threatening the survival of local stores that have served communities for generations. The rise of quick commerce may be inevitable, but its impact on traditional retail cannot be ignored. How will these small businesses adapt, or will they be left behind in the race for convenience? #QuickCommerce #RetailDisruption #KiranaStores #EcommerceGrowth #SmallBusinessChallenges #DigitalTransformation #RetailInnovation #ConsumerTrends #FutureOfRetail #IndiaBusiness #StartupIndia

💡Blinkit and Zepto are introducing beauty, fashion, technology, and other things. ⏩Two of the biggest quick #commerce platforms, Blinkit, owned by Zomato India, and Zepto, a startup located in Mumbai, are rapidly breaking into the e-commerce space and want to add a number of categories, including home, kitchen, fashion, beauty, electronics, and toys. ⏩According to those with #knowledge of the situation, Zepto, the first unicorn of 2023, has reached $1 billion in annualised gross sales as per the most recent figures. In the next two months, these platforms will add thousands more SKUs, bringing the total to over 10,000, as they observe users coming in to make regular transactions that propel platform commerce. ⏩According to those with knowledge of the plans, expanding beyond groceries and essentials will greatly expand the scope of #rapid commerce, affecting local kiranas as well as well-known e-commerce competitors Flipkart and Amazon. ⏩In addition, these platforms are strengthening their #logistical networks to handle a greater variety of products and guarantee that they are linked to dark stores and ready for delivery. Carrying a large number of SKUs for faster delivery timelines is a substantial expansion of strategy from two years ago, when quick commerce was beginning to take shape in India. ⏩Zepto and Blinkit have ventured into the fashion industry, partnering with clothing companies and vendors to list labels such as Mad Over Print, adidas, Pepe Jeans India Limited Jeans, Jockey International, Inc., Vedant Fashions Limited - Manyavar-Mohey, and XYXX. Although both platforms' entry into the garment market is still in its early phases, some with knowledge of the developments speculate that in specific use cases, the companies may end up becoming the preferred destinations for shoppers. ⏩Zepto, an apparel company based in Mumbai, markets its products to potential customers by emphasising the necessity for quick-fitting #clothing. To share your startup story write us on - [email protected] #commerce #gross #logistical #shoppers #fashion

It's no big secret that #quickcommerce is overtaking #ecommerce and #socialcommerce space. Also the #kiraana shopping undergoing a massive change. Reasons for E-commerce decline : 1) Competition Commission Of India CCI as per reports has asked Flipkart and Amazon to suspend their operations due to predatory pricing and murky business behaviour such as favouring certain vendors over democratic listing ,pricing like cellphones 2) Speed of delivery compared to quick commerce is sameday for prime,7days for normal buys 3) Due to the millions of vendors, SKU listings finding a stand out from the crowd is nearly impossible except for few segments /categories 4) Lack of service ,wrong product deliveries leading to poor customer service and bad review ratings,online 5) Deep Discounting structure has diluted and killed many a #fashion #beauty brands and categories alike .There is no brand building strategy on a marketplace it's like commodity selling. Rise of the Quick commerce: 1) From what we knew as #qcom the Blinkit acquisition by Zomato and Zepto valuation at 5Bn U$ soon Flipkart #instamart bigbasket.com followed suit in this game 2) Rise of Dark Stores within 5-10Kms radius of pocket residential areas in urban and tier-2/3 towns. 3) Customer On-Demand services such as Electronics, Fmcg and grocery seeing double digit growth between 15-16% 4) Consumer Experience: Better and direct ,ultra fast deliveries enable overall consumer satisfaction at the cost of higher delivery charges .Now Blinkit offers free delivery above 199* Rs./- 5)Festivity and Event days are a big draw for consumers to order on Quick commerce platforms like #Dusserah #diwali, new year ,Xmas , Ganesha pooja, Durga Pooja etc. This means higher spend ,higher disposable incomes 6) Urban town and Tier-1 and even Tier -2 slowly adopting this culture among the double income no kids couple culture compared to larger families with lower incomes . The #kiranaas will see a slide in their sales among higher income groups but will serve the loyal middle class groups In tier-3/4 and rural areas which are the umapped retail or newer territories. #socialcommerce will serve to younger audience for storytelling and branding . The Open Network For Digital Commerce (ONDC) has nodded to acknowledge and monitor growth of #quickcommerce and ministry of commerce had welcome FDI investment in this segment. Current market size stands at Fy2024-25 at 3.34Bn U$ set to surpass whopping 40Bn U$ by 2030 as per Deloitte consulting for quick commerce. Expect a slide in Diwali ,festival sales from both Amazon great Indian sale and Flipkart Big billion day sales channels. Definitely its a dynamic shift in the consumer journey and behavioral patterns since 35% shift is big enough change under 2yrs of quick commerce. #linkedin #linkedinnetwork #linkedinfollowers #linkedinnetworking #strategy #trade #commerce #consumption #consumerexperience #tuesdaythoughts #d2c