CARGOCONNECT JULY2024 - Flipbook - Page 10
PURPOSEFUL
Q-COMMERCE
TRANSFORMING
FMCG BUSINESS
CASE SCENARIOS
AND THE
LANDSCAPE OF
LAST-MILE
LOGISTICS
I
n India, the cultural shift
towards swift delivery
has spurred the growth
of hyperlocal and lastmile delivery startups.
These companies capitalise
on the increasing demand for
doorstep delivery with just a
tap. A new segment, termed
Quick Commerce (Q-commerce)
within E-commerce, is swiftly
emerging, where same-day and
instant delivery are becoming
the standard, proving indispensable. Over the past two
years, there has been a notable
uptick in e-commerce activity
across various sectors beyond
fashion and electronics. Food,
pharmaceuticals, groceries,
and essentials are among the
most sought-after and delivered
items. The last-mile delivery
landscape is experiencing signi昀椀cant momentum, driven by
the rise of hyperlocal startups
and substantial investments in
the sector. Hyperlocal startups
facilitate the last-mile delivery of
goods for Q-commerce and other
businesses or similar ventures
in this domain. As per a latest
10 | CARGOCONNECT JULY 2024
report, Q-commerce platforms
account for between 1-2% of
the sales of major fast-moving
consumer goods (FMCG) brands
and 7-8% for smaller entities.
Big consumer goods companies
such as Hindustan Unilever
(HUL), Dabur, Adani Wilmar
and Parle Products have said the
contribution of Q-commerce to
overall e-commerce sales rose
as high as 35% in FY24, almost
doubling in a year. Against this
backdrop, FMCG companies may
double their share of business
from quick commerce in the near
term as more companies use
platforms such as Blinkit, Swiggy
Instamart, Zepto, BigBasket, and
Dunzo. Several companies such
as Nestle India, Parle Products
and Godrej Consumer Products
have acknowledged the salience
of Q-commerce to their packaged
foods and home-care products.
For direct-to-consumer or
DTC brands, Q-commerce, currently, accounts for roughly 40%
of digital sales, a 昀椀gure expected
to rise to 60% in the near future
with e-commerce and modern
trade turning costlier for FMCG
brands than quick-commerce,
the report added.
Further, the report said that
the popularity of Q-commerce is
also set to challenge the dominance of incumbent e-commerce
platforms, especially in categories
such as beauty and personal care,
packaged foods and apparel. This
has led to greater discounting by
e-commerce platforms and o昀툀ine
retailers in recent quarters.
Zepto’s non-grocery sales
growth more than doubled
month-on-month for segments
like toys and electronics accessories, while beauty product sales
are up threefold. Nearly 15% of
the company’s US$1.2-billion
annualised gross sales now comes
from these products. Overall,
Zepto has seen its revenue grow
nearly three times in FY24 to
`325 crore. Swiggy’s Instamart
said it registered a robust monthon-month growth…with March
2024 touching its highest-ever
sales for non-grocery categories.
Insights say sales for the
beauty and personal care (BPC)
segment are likely up over 20%,
while earphones and accessories,
as well as health and nutrition are
clocking double-digit growth on a
quarterly basis. Experiments with
products like Playstation gaming
consoles and new-age fan brand
Atomberg also continue as SKUs
expand. Swiggy ramped up its
product selection and assortment
almost fourfold over the past
year, particularly in non-grocery.
