Indian consumers are increasingly preferring quick-commerce platforms for daily essentials but continue to opt for in-store shopping for high value purchases. This comes as the consumer industry in the country is experiencing profound shifts as changing lifestyles, digital adoption, and rising disposable incomes reshape preferences and business model. But even as quick commerce model is becoming popular, the segment faces challenges of high operational expenses.

A survey report released by Grant Thornton Bharat noted that quick commerce has emerged as the favoured mode largely for daily essentials, with 85 per cent of respondents choosing it for food and grocery purchases. At the same time, e-commerce is the preferred mode to buy clothing and accessories and contribute nearly 75 per cent of volume sales.

But for high-value purchases, however, physical stores remain the top choice, with more than 50 per cent of respondents saying they continue to opt in-store shopping for such products. This highlights their quest for touch and feel experiences and quality assurances, which brick-and-mortar retailers continue to offer, it added. The survey is based on a sample size of over 2500 respondents.

Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat, said, “India’s retail ecosystem is undergoing a pivotal shift as consumers seek a balance between the convenience of digital platforms and the quality assurance offered by traditional stores. While quick-commerce has gained popularity for everyday essentials with over 30 per cent of consumers opting for it, high-value purchases still predominantly occur offline.”

“This trend presents a unique opportunity for brands to adopt a hybrid model that combines the speed of digital access for essentials with in-store experiences that ensure quality for premium products,” he added.

However, traditional stores face significant challenges of limited product range and higher prices, respondents pointed out. In response, retailers are increasingly adopting hybrid models, merging the reliability of physical stores with the convenience of digital platforms, it added.

“Further, regulatory advancements, such as the Data Protection Act 2023, are likely to ensure a secure and transparent environment for digital transactions, making the hybrid approach a sustainable pathway for growth in India’s evolving retail landscape,” the report noted.

Talking about the challenges for the quick- commerce model, the report noted that high operational expenses related to warehousing and expedited delivery continue to strain the business model, with delivery costs accounting for up to 70 per cent of gross margins on orders averaging ₹300–500.

“Leveraging AI-driven data analytics can improve inventory management and optimize delivery routes, balancing both cost and speed. Partnerships with local retailers can expand hyperlocal distribution, broadening product choices while reducing dependency on central warehouses,” the report added.

As India’s retail landscape continues to evolve, prioritising omnichannel strategies, last-mile logistics, and digital platforms, and adapting to changing consumer demands, retailers can drive sustainable growth, build a loyal customer base, and thrive in the years to come, the report added.

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