Indian shoppers turn to q-commerce for monthly grocery, top-up purchases: NIQ report

Meenakshi Verma Ambwani Updated - September 24, 2024 at 07:26 PM.

Indian shoppers are turning to quick commerce for their main monthly grocery needs besides top-up purchases and not just impulse purchases.

According to a report released by NielsenIQ (NIQ), 31 per cent of Indian shoppers in urban regions now rely on quick commerce for their “main grocery needs”, while 39 per cent use it for “top-up purchases.”

Ready-to-eat meals and snacks seem to be among popular categories. About 42 per cent of urban shoppers use quick commerce for ready-to-eat meals, and 45 per cent said they use it for salty snacks, the NIQ’s Shopper Trend report, which is based on a survey of over 4,500 consumers in major Indian cities, added.

More price-conscious

Said Mitesh Dabrai, Executive Director – Consumer & Marketing Insights, NIQ India: “Shoppers today are more discerning, price-conscious, and channel-agnostic than ever before. The doubling of quick commerce usage signals an urgent need for FMCG brands to prioritise convenience and speed, while simultaneously addressing value perceptions. With 87 per cent of shoppers feeling the impact of rising food prices, businesses must focus on strategic pricing and promotions to maintain shopper loyalty.”

Leading FMCG companies have said that they have been witnessing rapid growth on the quick-commerce channel. In a recent investor call, Mrinalini Srinivasan, Chief Financial Officer, Procter & Gamble Hygiene and Health Care Ltd said that quick commerce is more than doubling year-on-year for the company . “While currently a small channel, quick-commerce is growing rapidly for us and is expected to continue to drive growth across FMCG industry as the channel expands to multiple locations,” she added.

In August, Mohit Malhotra, CEO, Dabur India told analysts, “ E-commerce is flying for us and is driven by quick commerce. Quick commerce growth is around 70 per cent year-on-year for us (Q1FY25).”

The NIQ report pointed out that the shopping frequency is also on the rise with consumers making frequent visits to both Modern Trade stores and online platforms. The report noted, a surge in grocery store visits for “main shopping” with 32 per cent of Indian shoppers visiting weekly in 2024 (vs 12 per cent in 2023) and 24 per cent for top-up shopping (vs 18 per cent in 2023).

As shoppers embrace multichannel shopping, 20 per cent of offline shoppers also turn to online stores for their grocery needs. “This behaviour is particularly evident in metropolitan areas, where online platforms are used more for main shopping. Non-metro shoppers are leaning towards using online stores for top-ups. The report indicates a noticeable increase in quick commerce visits, especially for urgent, immediate needs,” the report added.

Published on September 24, 2024 08:33

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