Quick commerce has become the fastest-growing sales channel for FMCG companies, prompting them to adopt new packaging strategies to protect traditional retail channels. The familiar Rs 10 pack of Parle-G biscuits you toss into your cart on quick-commerce apps may soon be a thing of the past. Consumer goods companies, facing the dual challenge of supporting neighbourhood stores while addressing shifting shopping habits, are rolling out new packaging designed exclusively for online platforms.
Leading this transformation, brands like Hindustan Unilever, ITC, Parle Products, and Adani Wilmar are reimagining product sizes and pricing for apps that promise groceries and essentials delivered within minutes, reports The Economic Times. These adjustments aim to cater to the rapidly growing segment of e-commerce shoppers while safeguarding traditional retail channels.
However, local kirana stores have raised concerns about alleged predatory pricing by quick-commerce platforms, accusing them of undercutting traditional markets in a bid for dominance.
Different packs for different channels
Parle Products has launched exclusive packs of its popular biscuits, including Parle-G, Hide & Seek, Krack Jack, and Monaco, priced between Rs 50 and Rs 100 for quick commerce. Smaller packs, costing up to Rs 30, will only be sold at kirana stores, while larger retail chains like Reliance and DMart will stock packs priced at Rs 120-150.
“Quick commerce has been bundling small packs meant for kiranas, which was causing conflicts,” said Mayank Shah, vice-president at Parle, speaking to The Economic Times. “So, we introduced separate packs for quick commerce to resolve this, and the response has been very positive,” he said.
Other companies are following this trend. ITC has introduced new quick commerce packs for Engage perfumes, Savlon handwash, and Mangaldeep incense sticks. Adani Wilmar plans to launch a separate brand for quick commerce, featuring cooking oils and staples like pulses, priced slightly higher to match the spending habits of quick commerce shoppers.
The rise and rise of quick commerce
Quick commerce, originally a solution for last-minute top-up grocery runs, has become the fastest-growing sales channel. It now contributes 35-40 per cent of ecommerce sales for many consumer goods companies, according to a recent report by Nuvama Institutional Equities.
This shift has impacted kirana stores. A November report from Datum Intelligence found that more than 82 per cent of buyers had moved at least a quarter of their purchases to quick commerce platforms, while 5 per cent had stopped shopping at local stores entirely.
Distributors are urging the government to scrutinise quick commerce platforms and have also reached out to consumer goods companies for support.
Can kiranas and quick commerce coexist?
Consumer goods leaders believe both formats can thrive. “Consumers shop for different needs in different formats. We haven’t seen a drop in sales at kirana stores,” said Arun Neelakantan, executive director for customer development at Hindustan Unilever speaking to The Economic Times.
An ITC spokesperson added that product and pack varieties are tailored to suit different shopping behaviours across channels. As quick commerce continues to evolve, it’s clear that companies are rethinking how they serve customers while trying to strike a balance between innovation and traditional retail.