Modern trade sees volume decline as q-comm rises

THE CONVENIENCE FACTOR in shopping within urban areas is beginning to hurt modern trade hard as consumers switch to q-commerce platforms.

- VIVEAT SUSAN PINTO

Data from market research agency NielsenIQ show that the October-December 2024 period saw a volume decline of 1.1% in modern trade, the first time in 10 quarters.

Modern trade contributes 12% to fast-moving consumer goods (FMCG) sales while traditional trade's share is 80% and e-commerce is about 5-8%. Within e-commerce, q-commerce share is one third, sector experts said. But this share is growing rapidly for FMCG companies, prompting them to realign their channel priorities, devoting more time, energy and resources to q-commerce as consumers seek instant gratification.