Rapid Evolution of Indian Shopping Habits Drives Retail Inc To Join Q
News Mania Desk/Agnibeena Ghosh/21st July 2024
The shopping behaviors of Indians are rapidly evolving, pushing retailers to rethink and expedite their delivery methods. Indians are now purchasing daily necessities and fast-moving consumer goods (FMCG) more frequently and in larger quantities than a few years ago. Experts and executives attribute this shift to the rising trend of consumers seeking instant gratification, spurred by the growing prevalence of quick commerce.
Recognizing this shift in consumer behavior, major retailers like Reliance Retail and Spencer’s Retail are increasingly focusing on online orders and shortening delivery times. Ecommerce giant Amazon is striving to speed up order fulfillment, while competitor Flipkart has launched its own quick commerce service.
Recent data from research firm Kantar reveals that Indians now shop for FMCG products 156 times a year, equating to once every 56 hours. Just five years ago, this figure was around 80-90 times annually. Over the past four quarters, the number of FMCG packs purchased in a quarter ranged between 199 and 202, up from 163-179 about two years ago.
Krishnarao Buddha, senior category head for marketing at Parle Products, noted that the size of the monthly grocery shopping basket is decreasing each year. This is due to consumers favoring need-based purchases, driven by the convenience of quick commerce and reduced delivery times from ecommerce platforms. Buddha also mentioned that the frequency of shopping trips or orders for FMCG products is increasing by 15-20% annually. This trend is influenced by need-based consumption habits and smaller living spaces in metro areas, which limit storage capacity.
In response to these changes, Amazon has introduced same-day grocery delivery, while Flipkart has launched its quick-commerce initiative, Flipkart Minutes. These efforts are taking place in a market dominated by players like Zomato’s Blinkit, Swiggy Instamart, BigBasket’s BBNow, and Zepto. Reliance Retail and Spencer’s Retail are also shifting towards faster order fulfillment.
Dinesh Taluja, Reliance Retail’s chief financial officer, recently announced that the company plans a significant entry into hyperlocal deliveries, encompassing groceries and other products. Last month, Reliance launched its hyperlocal venture through the JioMart shopping app, promising grocery deliveries within 45-60 minutes. Taluja highlighted the advantage of Reliance’s extensive pan-India store network, which allows for cost-effective customer acquisition compared to other online players.
Spencer’s Retail chief executive Anuj Singh noted that consumers now expect planned online purchases to be delivered within an hour. Spencer’s has been offering express delivery in Kolkata for the past nine months, which has boosted ecommerce orders by 30%. The service has recently expanded to Uttar Pradesh, with plans to extend to other states.
These developments underscore the dynamic nature of the Indian retail landscape, where the demand for rapid and convenient shopping experiences is reshaping traditional retail models. As consumer expectations continue to rise, retailers are compelled to innovate and adapt to stay competitive in this fast-paced market.
