RETAIL'S GREAT DISRUPTOR

As the average urban consumer gets addicted to 10-minute delivery, quick commerce has come into its own.

- Ajita Shashidhar

A meeting with ITC chairman Sanjiv Puri is incomplete without savouring the food division’s latest launches. From onion rings and paneer pakodas to french fries and aloo tikki, his coffee table is full of ITC’s frozen snacks. But Puri is tasting not only paneer pakodas—his weakness—but also success. These products, and a host of other innovations, have caught on in quick commerce, the 10-minute delivery service that has emerged as retail’s biggest disruptor. Sales of such products on quick commerce platforms Blinkit, Zepto, Swiggy Instamart and BBNow accounted for 50% of ITC’s e-commerce revenue (10% of total) in FY24.

While frozen food appeals to the young, who are avid quick commerce shoppers, Puri says ITC has also seen traction in Right Shift, a healthy food brand for 45-plus consumers, apart from products such as bamboo-less dhoop sticks Mangaldeep Temple and Savlon laundry disinfectant. “We are developing products that can be pushed through the channel,” says Puri. “Quick commerce requires you to think differently. One needs different skill sets for promotions, listings and providing information about products,” says Puri. It has been the biggest disruptor in recent times, forcing businesses to not only create super-agile supply chains but also innovate for the consumer, who is opting for convenience over value, he says.

ITC is not alone. Quick commerce, almost non-existent four years ago, accounts for 30-35% of the e-commerce revenues of some of India's biggest FMCG companies such as Tata Consumer, Colgate-Palmolive and Marico (one-sixth for Hindustan Unilever). For new-age brands SUGAR, BoAt and Mamaearth, it is expected to account for 10-20% revenue in 12-18 months, from 5-6% at present.