Modern trade sees volume decline as q-comm rises

Convenience factor, increased discounting & availability of a wide assortment of products driving shift

- Viveat Susan Pinto

The convenience factor in shopping within urban areas is beginning to hurt modern trade hard as consumers switch to q-commerce platforms.

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.