Quick Commerce Impact On Kirana Report-Compressed

State of Quick
Commerce
Market, 2024
Impact on Kirana Stores
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©2024 Datum. All rights reserved. Reproduction prohibited.
About This Report
As the retail landscape in India undergoes a rapid

transformation, the rise of quick commerce platforms
has been a topic of much discussion and concern, Table of Content
particularly regarding its impact on traditional Kirana
stores. In this report, we delve into the effects of this 1. State of Indian Grocery Market
digital disruption on these small businesses that have
long been the backbone of local communities across 2. Emergence of Quick Commerce
the country.
3. Quick Commerce Impact on
Our primary objective behind this report was to shed
light on the significant challenges faced by Kirana Grocery Retail
stores in the wake of the rapid rise of quick
commerce platforms. 4. Insights from Consumer Survey
Our aim in compiling this report was not only to raise 5. Impact of Quick Commerce on
awareness about pressing issues but also to Kirana Stores
encourage collaboration and dialogue among all
parties involved—from Kirana store owners and
quick commerce platforms to consumers and
policymakers.
©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 2

Executive Summary
• Quick commerce mimics the purchase behavior of Indian consumer on Kirana stores
• Quick commerce offers better pricing than traditional retail by removing multiple
intermediaries between FMCG companies and the buyer
• Blinkit and other quick commerce players are growing faster than modern grocery retailers
• Quick commerce preferred method for buying groceries online
– 10-Minute delivery preferred choice for buying grocery compared to scheduled delivery
– Quick commerce platforms are cheaper than Kirana store across categories
• Quick commerce is no longer limited to top-up and unplanned purchases
– 75% online grocery buyers saw a jump in unplanned purchase in the last six months
– Nearly 53% of buyers place more than 5 orders monthly on quick commerce
– Nearly 67% of buyers have an average order value of more than ₹400 on quick
commerce
• Impact on kirana stores
– 46% quick commerce buyers reduced buying from kirana shops
– Over 82% of buyers have moved at least 25% of kirana purchases to quick commerce
– 5% respondent stopped buying from kirana Shops
– $1.28 Billion of kirana sales expected to move to quick commerce in 2024
– This accounts for 21% of sales on quick commerce platforms in 2024

Research Methodology
Online Consumer Survey Expert Interviews Kirana Shop Owners Market Data
• Research Objective: To In-depth interviews with • Target Audience: Market Data by Datum
understand the buying industry stakeholders Kirana shop owners for Indian eCommerce
behaviour of online and experts including who sell grocery, fruits and Quick Commerce
grocery buyers with a quick commerce players, and vegetables and market, company
focus on quick FMCG brands, logistics, general merchandise filings, broker reports
commerce payments, modern retail • N= 300 kirana shop and media reports
• Duration: October, 2024 partners and industry owners in 10 cities
associations
• Online survey • Duration: October,
conducted 3,000 online 2024
adults across 10 cities in • Cities Covered - Delhi-
India in the festive NCR (Delhi, Gurgaon,
month Noida), Mumbai,
• Cities Covered - Delhi- Bangalore,
NCR (Delhi, Gurgaon, Hyderabad,
Noida), Mumbai, Ahmedabad, Chennai,
Bangalore, Hyderabad, Kolkata, Pune
Ahmedabad, Chennai,
Kolkata, Pune

State of India Grocery
Market, 2024
Section 1
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Grocery Sales to Reach $818.3 Billion by 2028 from $570.3 Billion
in 2023
India Grocery Market By Sales 2023-28

(in $ billion)
$818.3
Key Insights
• Grocery largest category in
$616.7 Indian retail market
$570.3 • Population growth,
urbanization, and rising
$427.8 disposable incomes are driving
the expansion of India's grocery
sector
• Grocery market is expected to
grow at a CAGR of 7.5%
between 2024-28 adding ~$250
billion in sales
2018 2023 2024 (F) 2028 (F)
Source: Datum Analysis

Kirana Leading Sales Channel Followed by Organized Retailers
Grocery Market By Sales Channels, 2023

(in %)
Quick Commerce,
1.0%
Traditional ecommerce,
1.3%
Key Insights
Organized B&M,
5.5%
• As of CY2024, India's grocery
market is predominantly
controlled by unorganized
retail, which holds an
impressive 92% market share
Unorganized Retail, • Despite the rapid growth of
92.2%
organized retail and e-
commerce, Kirana store
remains a crucial component
of India's retail sector
• Quick commerce is expected
to increase the channel shift
from Kirana to online grocery
2024E

SKU Count by Retail Channels
SKU Assortment by Retail Channels Average Order Value by Retail Channels

(%) (%)
30,000+ ₹2,000+
18,000+ ₹1,000-
1,200
12,000+
₹500
-600
₹100
-200
1,200
Kirana Store Quick Modern Retail Scheduled Kirana Store Quick Scheduled Modern Retail
Commerce Grocery Commerce Grocery

Shopping Habits of Indian Consumer Suitable for Quick Commerce
Frequency of Purchase
(in %)
Daily 4-6 times a week 2-3 times a week Once a week

Once in 2 weeks Once a month Once in 2+ months
Dairy 44% 17% 17% 9% 3% 8% 2% Key Insights

• India's grocery market is
characterized by small-ticket,
Fruits & Vegetables 9% 17% 34% 26% 6% 6%
2% high-frequency purchases,
fueling quick commerce's
growth as a preferred
Packaged Foods 4%5% 13% 28% 24% 23% 3% channel over modern retail
for everyday essentials.
• Limited kitchen space and
high SKU variety drive
Staples 2%4% 14% 13% 62% 5%
0%
frequent top-up purchases in
Indian grocery market
Meat 2%7% 31% 43% 10% 7%

0%
Source: Datum Analysis, Zepto, HSBC Research

Emergence of Quick
Commerce
Section 2
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What is Quick Commerce
Quick commerce Simple User 10,000 SKUs curated by

refers to deliver of Experience category; typically,
grocery items in bestselling items/brands
10-20 minutes in each category
Dark stores managed Baskets typically includes

by the platform for 5-10 items per order
seamless logistics and
Last minute purchases, fresh
optimized delivery time
and items of daily consumption
Source: Datum Analysis, Prosus Investor Relations

Quick Commerce Landscape
Start of Operations Jan -22 Aug-20 Apr-21 Dec-21 Aug-24
Number of Cities 40 43 10+ 35 3
# of Dark Stores 791 557 350 400 40
# of Daily orders 10,00,000 800,000-10,00,000 700,000-750,000 400,000 50,000
Avg order Value (₹) ₹660 ₹487 ₹470 ₹400-500 ₹300-400
# of SKU’s 7,000+ 12,000+ 10,000+ 6,000+ 7,000-10,000
Area of Dark Store (sqft) 2,000-3,000 sq.ft. 2,500-4000 4,000 sq.ft. 2,500-3,000 sq.ft. 1,800-2,000
Loyalty Program NA Swiggy One Zepto Pass NA NA
Platform fee/Handling
Charges (₹) ₹4 ₹5 ₹2, ₹5 ₹6 ₹5
Source: Zomato Investor Relations. Press, Prosus Investor Relations, Swiggy IPO Prospectus, Datum Analysis

How It Works – Blinkit Quick Commerce Operations
#1 Supply chain design
#2 End-to-end proprietary technology

Marketplace
Warehouse R • Replenishment design – Assimilate
2. (self leased)
purchase patterns to optimize product
ne Ord stocking quantities and replenishment
ar er
es as
t d si
R cycles in stores
ar gn
k s ed S • Store tech – Products packed in under
to to
1. Order re two minutes through smart pick-path
placed 4. Inventory replenishment Seller & Brands optimization in dark stores
in dark stores multiple Own the inventory
times daily stored in warehouses
L • Location intelligence – Optimizing store
and dark stores locations for shortest delivery times
A • Assortment science – Neighborhood
level data on product searches and
purchase patterns drives relevance and
localization of assortment in dark stores
3. Last mile delivery Ad• Ad-tech – Self-serve platform for
(<3 kms distance enabling brands to access demand patterns to
Customer delivery in <15 mins) Dark store enable highly targeted advertising
(self leased + franchised)
A Ad
R S L
Source: Zomato Investor Relations.

How it Works – Swiggy Instamart Quick Commerce Operations
Commissions retained less

1b Swiggy funded Discounts
+
3 Free from user
+ Brand Partner
4 Advertisement Revenue
- 4
5 Additional Fee Advertisement Revenue
1
Item total net of discounts
1a Item total – Merchant funded
discounts net of Swiggy
2 commission
Delivery Fee + Delivery Tip
User
Merchant Partner
1 + 2 + 3 3
Free from user
2
Delivery Fee + Delivery Tip
5
Additional Fee
Quick Commerce 2 + 5
1 Received from User/Brand partner Delivery Partner
2 Paid to Merchant/Delivery partner

Source: Swiggy Investor Relations.

Why is Quick Commerce Working?
• Frequent and timely top-up purchases for immediate needs

1 • Mirrors offline purchase behaviour of local kirana store
• High fill rate and quick delivery time

2 • Zomato – Fill rate 99%+, Average delivery time of 12.5 Minutes
for 75% + orders
• Meets diverse customer demands across categories

3 • From food and electronics to beauty, general merchandise,
and festive essentials
Source: Zomato Investor Relations. Datum Analysis

Visible Path to Profitability
Increasing Average Decreasing Cost of New Revenue Efficient Operations Low Last Mile
Order Value (AOV) Goods Sold (COGS) Streams Using Dark Stores Delivery Cost
• Increase AOV via category • Sourcing relationships with • Delivery Fees, Platform Fees • Optimize store layout and • Low delivery drop rates, and
expansion, product FMCG producers and and Advertising Revenue location to achieve store optimisation of route
upselling, minimum order retailers efficiency and superior planning due to small radius
values and optimizing & fulfilment rates of delivery
localizing selection
• Zomato’s AOV grew by 25% • Quick commerce offsets • Customers are willing to pay • Dark stores operations are • Platforms engage a
from INR 528 in Q1 FY23 to traditional retail’s high delivery and platform fees optimised for high combination of motor-bike,
INR 660 in Q2 FY25 channel costs by removing for convenience throughput per sq. ft with 10- electric mobility vehicle or
layers and substituting it with 12,000 SKUs bicycle rider partners to fulfil
delivery costs orders
• FMCG companies optimizing • Ad spend on quick

stocks between Kirana, commerce platform
Quick Commerce and reached to 3-4% of gross
Modern trade order value (GOV) in the last
two years
Source: Prosus Investor Relations. Datum Analysis

Quick Commerce Offers Better Pricing Than Traditional Retail
Traditional Producer Distributor Wholesaler Retailer Consumer

Offline Retail
25% margins shared between wholesale, distributor and retailer
Quick commerce offsets

traditional retail’s high
channel costs by removing
layers and substituting it
with delivery costs. As long
as delivery costs are lower
than savings from the
channel consolidation, quick
Quick Producer Quick Commerce Platforms Consumer
commerce can offer prices
lower than traditional retail. Commerce
10-15% margins retained by platform; rest passed on to the consumer
Source: Goldman Sachs, Datum Analysis

Quick Commerce Offers Platforms Better Negotiating Capability
Product Margin Available to Quick Commerce Platforms

(in %)
20-25% 20-25% 20-25%
15-25%
15-20% 15-20%
Mid-high
Single digit
Mid
single digit
Low
single digit
Dairy* National Electronics Vegetables* Ice creams D2C Fruits* General Meat*
Brands Challenger Merchandise
Brands
* Note: For these categories, product margins are after considering wastage.
Source: JM Financials

Blinkit is Adding Dark Stores and Monthly Riders At A Rapid Pace
# of Dak Stores, at the end of the Period Average Monthly Riders Average GOV Per Day, Per Store
(in #) (in ‘000) (in INR ‘000)
~2x Growth Since Q1FY23 ~3.3x Growth Since Q3FY23 ~3.2x Growth Since Q1FY23
791
₹981
409
39 ₹309
Q1FY23 Q2FY25 Q3FY23 Q2FY25 Q1FY23 Q2FY25

Blinkit is Expecting to Witness a Growth of 60% YoY
Average monthly transacting customers Average Order Value Gross Order Value
(in millions) (in INR billions) (in INR billions)
~4x Growth Since Q1FY23 ~5.2x Growth Since Q1FY23
₹660
8.9 ₹61.3
₹528
2.2
₹11.7
Q1FY23 Q2FY25 Q1FY23 Q2FY25 Q1FY23 Q2FY25

Quick Commerce Impact
on Grocery Retail
Section 3
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Nestlé India’s Growing E-commerce Channel Share
eCommerce Share in Nestle India Sales

(in %)
Continued accelerated growth by almost 38%, primarily

driven by Quick Commerce – Q2, 2024-25 Results
6.9%
6.5%
5.3%
3.7%
1.9%
1.3%
0.9%
0.6%
2016 2017 2018 2019 2020 2021 2022 2023
Source: Nestle Investor Relations. Datum Analysis

Commentary from FMCG Companies (1/2)
Company Period Management Commentary
Oct-22 Management noted that for beverages revenue contribution from the quick commerce channel has gone up to 30-32%
(vs 15% about a year ago).
Dabur
"E-commerce and modern trade is assuming huge importance. Within the e-commerce space, quick commerce’s
Sep-23
contribution is expected to be 25-30 per cent in two years." - Mohit Malhotra, CEO
Ecommerce is the fastest growing channel (c.7% of sales); quick commerce i.e. about 25-30% of ecommerce sales and
HUL Apr-24
growing faster. HUL mentioned that they are growing very high margin portfolio in quick commerce channel
Within ecommerce, quick commerce has been the fastest growing channel, with 50% contribution (of the ecommerce
Nestle India Oct-23
business) from this channel
Tata Consumer 28% growth in e-commerce with quick commerce growing stronger than the average; management remains focused
Jul-23
Products on growing that channel
"E-commerce now contributes 5 per cent to our sales and of this about 1.5 per cent comes from quick commerce
platforms alone. Consumers are opting for quick commerce platforms for impulse purchases such as chocolates, salty
Parle Products Sep-23
snacks and ice-creams. But they are also shopping for more planned purchases such as bulk packs of packaged atta
from quick-commerce platforms." - Krishnarao Buddha, Senior Category Head, Parle Products
"We have added or we have invested significantly in growing the distribution through grocery channel and many other
emerging channels such as e-commerce and quick commerce and all of that in the last several quarters. So, whether it
Heritage Foods 2QFY24 is in terms of adding of distributors, which has -- today, we have close to about 50,000 outlets reach in the grocery
channel”. - Srideep Kesavan, CEO
“If I have to put it in very, very simple terms, it’s quick commerce that's leading, followed by ecommerce”. “There is a clear
Britannia May-23
uptick that’s happening on the quick commerce side. And very much so in certain categories.” - Rajneet Kohli, CEO

Commentary from FMCG Companies (1/2)
Company Period Management Commentary
Within online, quick commerce has been really disruptive. Compared to a year ago, when ecommerce sales accounted
for a fifth of our sales, the channel now contributes nearly a third, on a par with general trade and modern trade. There
Bagrrys Oct-24
has been consolidation of modern trade stores as well as they focus more on return on investment and profitability," -
Aditya Bagri, director at Bagrrys
FMCG major is expecting 4-5 fold growth in sales through quick commerce in the next 2 years – Harsha V Agarwal, Vice
Emami Oct-24
Chairman & MD, Emami
Nearly half of our sales are now from organised trade led by quick commerce in large markets like the National Capital
Adani Wilmar Oct-24
Region, Bengaluru and Pune as compared to 25-30% a year ago. -Managing Director Angshu Mallick
Moving to quick commerce is an industrywide phenomenon, and sales to distributors are billed as per sales – Tarun
Zydus Wellness Oct-24
Aroro, CEO
We are surprised the way large packs of staples have taken off in quick commerce, which is growing 100%QoQ for us."
Marico Feb-24 On the other hand, growth in kirana grocery stores is about 10%, though on a larger base. - Ayush Gupta, head -
domestic market
We are surprised the way large packs of staples have taken off in quick commerce, which is growing 100%QoQ for us."
KRBL Feb-24 On the other hand, growth in kirana grocery stores is about 10%, though on a larger base. - Ayush Gupta, head -
domestic market
Procter & E-commerce is already contributing in double digits to our overall revenues but of course differs by category and the
Gamble Sep-23 choice a business makes on the channels for each segment. In fact, we are also learning and seeing early wins on
Hygiene and specific formats like quick commerce. - Gautam Kamath
Health Care
Zed Black General trade constitutes 95% of the company’s sales, but that doesn’t mean the brand won’t sell through quick-
Apr-24
Agarbattis commerce platforms. -Ankit Agrawal, Managing Partner
Source: Press, Earnings call

Revenue Share of Quick Commerce For FMCG Companies
Revenue contribution by E Commerce Channel Revenue contribution by Quick Commerce Channel

(%) (%)
ITC - Food & Personal Care 10.0%

Dabur Beverages 30.0%
Marico 9.0%
Tata Consumer 9.0%
Dabur 9.0% HUL-Ice Cream 10.0%
Emami 7.5%
Amul 7.5%
Nestle 3.3%
Nestle 6.5%
Colgate-Palmolive 5.0%
Parlet Products 5.0% Parle Products 1.5%
Britania 2.5%
Source: Company, Media, JM Financial

Blinkit Growing Faster Than Modern Grocery Retailers
Blinkit Vs Modern Retailers Growth Rates

(%)
QoQ Growth (%) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25
Blinkit 26% 18% 17% 5% 29% 28% 14% 23% 25%
Reliance Retail 11% 4% 2% 1% 10% 8% (8%) (1%) 1%
Dmart 6% 9% (8%) 12% 6% 8% (6%) 11% 3%
Spencer Retail 5% (2%) (15%) 5% 1% 14% (16%) (1%) NA
YoY Growth (%) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25
Blinkit 125% 80% 86% 103% 97% 130% 122%
Reliance Retail 38% 75% 52% 19% 19% 23% 11% 8% (1%)
Dmart 37% 26% 21% 18% 19% 17% 20% 19% 14%
Spencer Retail 12% 2% 0% (8%) (12%) 2% 1% (4%) NA
Source: Investor Relations. Datum Analysis

Declining Same Store Sales Growth For Dmart
Like for Like Sales Growth for Dmart

(in %)
We don't intend to do any quick commerce. I think our model is pretty robust and the learnings have been to try and get more and more
revenue in the large towns / cities. - Neville Noronha, CEO, July 30,2024
24.2%
21.2%
17.8%
16.7%
14.2%
10.9% 9.9% 9.1%
5.5%
2020-21
2016-17 2017-18 2018-19 2019-20 2021-22 2022-23 2023-24 Q1FY25 Q2FY25
-13.1%
We clearly see the impact of online grocery formats including DMart Ready in large metro DMart stores which operate at a very high
turnover per square feet of revenue. DMart Ready business grew by 21.8% in H1 FY 2025 - Neville Noronha, CEO, October 14, 2024
Note: Like for Like growth means growth in revenue from sales of same stores which have been operational for at least 24 months at the end of th reporting period
Source: Dmart Investor Relations. Datum Analysis

Share of Kirana to Decline in Indian Grocery Market
By Sales Channels, 2023-28

(in %)
Unorganized Retail Organized B&M

0.3% 1.2% 1.6%
0.0% 0.6%
4.7% 3.0% Quick
5.3% 6.5% Key Insights
Commerce
• As of CY2023, India's grocery
share up market is predominantly
2.4% controlled by unorganized retail,
which holds an impressive 93%
market share
Kirana Share • Despite the rapid growth of
95.0% 92.9% organized retail and e-
88.9% Down
commerce, Kirana store remains
share by a crucial component of India's
4.0% retail sector
• Quick commerce is expected to
increase the channel shift from
Kirana to online grocery
2018 2023 2028E

Quick Commerce Fastest Growing Channel for Grocery
Grocery Market By Sales Channels, 2023-28

(in %)
48%
Key Insights
• Quick commerce has
witnessed an unprecedented
pace of adoption, significantly
influencing consumer
behaviors across the retail
ecosystem
• Quick commerce is projected
to experience a 74% growth in
13% 2024, positioning it as the
12%
fastest-growing channel
7% during the 2023-28 forecast
period with a 48% compound
annual growth rate
Kirana Organized B&M Ecommerce Quick Commerce

Quick Commerce to Reach ~$40 Billion by 2030
Quick Commerce Market Size Forecast

(in $ billions)
$45
~61x Growth Since 2020
$40.1
$40
Key Insights
$35
• Quick commerce is expected
to reach $40 billion by 2030
$30
• The swift acceptance of quick
commerce among consumers
$25 Up 46% demonstrates a clear
willingness to pay for the
$20 convenience of immediate, on-
demand purchases.
$15 • Rapidly evolving consumer
preferences are positioning
$10 quick commerce as the
primary online retail channel
for brands, swiftly replacing
$5 $3.5 $6.1 traditional e-commerce
$2.0
$0.1 $0.3 platforms, kirana stores and
$0 modern retail stores.
2020 2021 2022 2023 2024F 2030F
Source:. Datum Analysis

Insights from Consumer
Survey
Section 3
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Grocery Second Largest Category Purchase Online After Clothing
Which categories have you purchased online in the past six months?
(%)
Clothing 65%
Grocery 61%
Footwear 52% Key Insights
Beauty and Personal care 51% • Online grocery shopping
Mobile phones 48% platforms are gaining
Electronics 47% popularity, as shoppers
Books 36% embrace digital channels for
Event / movie tickets 34% their everyday needs in the
Homeware and Furniture 33% top 10 cities
Toys 32% • Quick commerce’s focus on
Jewellery 31% speed and convenience
Large appliances 30% aligns with consumers' needs
for efficient, on-demand
Music and video 28%
grocery shopping experiences
Sports and entertainment goods 26% plays a major role in adoption
Sports equipment 26% of online grocery
Over-the-counter drugs 18%
Car parts 17%
Source: Datum Online Grocery Study 2024, (n=3,032 online grocery buyers in10 cities)

More People Are Interested in 10-minute Grocery Delivery
How interested or uninterested are you in using 10-minute grocery delivery?

(in %)
2021 2024
Key Insights
57% • Modern consumers
Interested increasingly prioritize
76% convenience and speed
• 76% online adults are
interested in 10-minute grocery
delivery in 2024, up from 57% in
19% 2021
Neither interested nor uninterested
8% • Covid-19 compelled
consumers to explore online
grocery shopping, establishing
new habits and preferences for
24% online channels.
Not interested • Quick commerce platforms
16%
capitalized on these
established behaviours,
offering efficient delivery
options to attract a wider
customer base.

Customers Are Willing to Pay Extra for 10-minute Grocery Delivery
How likely are you to pay extra for 10-minute grocery delivery?
(in %)
2021 2024
Key Insights
47%
Likely • Customers are increasingly
73% prioritizing convenience and
are willing to pay a premium for
services that make their lives
easier
25% • 73% online adults are likely to
Neutral pay extra for 10-minute grocery
15%
delivery in 2024, up from 47% in
2021
• The increasing consumer
willingness to pay for
28%
Unlikely convenience, combined with
12% additional revenue streams,
strengthens the business case
for quick commerce viability.

10-Minute Delivery Preferred Choice for Buying Grocery Online
What is the preferred type of online grocery platform?

(%)
Scheduled next
day delivery Key Insights
31%
• High fulfilment rates and faster
delivery makes 10-minute
delivery the preferred option for
buying grocery
• The majority of customers (69%)
10-minute favours 10-minute grocery
delivery with delivery services over scheduled
market price next-day options (31%)
69% • The strong preference for 10-
minute grocery delivery is
prompting mature online grocery
shoppers to switch to quick
commerce platforms

Fast Delivery And Discounts Key Drivers for Quick Commerce
What is the key motivation behind buying from quick commerce players during the festive period?
(%)
Fast delivery for last-minute purchase 36%
Discount 32%
Existing buyers of quick commerce and

trust them for product quality and delivery 7% Key Insights
Ease of ordering and payment 7% • For the early adopters of quick
commerce, fast delivery
emerges as the primary
Interest-free EMI schemes 5%
motivating factor, emphasizing
My shopping list was ready and I don’t convenience as a priority over
want to wait for product delivery 4% discounts
I will not be buying from quick commerce • Discounts and pricing remains
players during the festive period 3%
critical for customers and play
Expected delay in delivery by a significant role in wider
marketplaces like Amazon and Flipkart 3% adoption of quick commerce
especially in Tier 2 and 3 cities
Other 1%
Source: Datum Consumer Sentiment Study 2024, (n=2,000 online adults)

Quick Commerce is No Longer Limited to Top-Up and Unplanned
Purchases
When do you generally purchase products on quick commerce apps?

(%)
58% Key Insights

• Quick commerce has witnessed
52% a transformation from being
primarily associated with
43% impulsive top-up purchases to
full month's grocery needs
• 58% customers use quick
commerce for full month's
grocery needs followed by 52%
for top up purchases and 43% for
unplanned purchases
• This is evident in the continuous
rise in average order value on
quick commerce platforms
• Category expansion by quick
commerce platforms is heling
Full month’s grocery needs Top-up purchases Unplanned purchases (Late this shift from top-up purchases
night cravings, during sales, to monthly grocery needs
and festivals)

Quick Commerce Evolves Beyond Top-Up and Unplanned
Purchases
When do you generally purchase products on quick commerce apps?

(%)
Full month’s grocery needs Top-up purchases Unplanned purchases (Late night cravings, during sales, and festivals)
68%
60% 60% 59% 58% 57% 57%

57%
51% 51% 53% 54% 52%
48% 50%
47% 45% 49%
46% 45%
43%
40%
37%
33%
Kolkata Bangalore Mumbai Chennai Ahmedabad Hyderabad Delhi NCR Pune

Unplanned Purchases on the Rise Among Online Buyers
How were your unplanned grocery purchases changed in the last six months?
(%)
43%
Key Insights
• 75% of online shoppers
32% reported a notable jump in
unplanned purchases during
the past six months
• The increased confidence in
receiving grocery items within
19% 10 minutes through quick
commerce platforms has led to
a surge in unplanned
purchases
• This is in line with the way Indian
4% customers purchase grocery i.e.
1% in multiple orders distributed
throughout the week
Significantly Increased Remined the Decreased Significantly
increased same decreased

Mumbai at the Forefront of India's Unplanned Grocery Purchase
Surge
How were your unplanned grocery purchases changed in the last six months?
(%)
Increased Remined the same Decreased
6% 5% 4% 6% 6% 6% 5% 5%
12% 19% 20% 21% 20% 20% 22% 24%
82%
76% 76% 74% 74% 74% 73% 71%
Mumbai Delhi NCR Ahmedabad Pune Kolkata Chennai Bangalore Hyderabad

Quick Commerce Platforms Became the Preferred Choice for
Unplanned Purchases
Where do you get most of your unplanned purchases from?

(%)
44%
Key Insights
• The ability of quick commerce to
deliver essential items within
33% minutes has positioned them as
the preferred choice for
consumers seeking instant
gratification and convenience.
• 44% online buyers use quick
commerce platform for
17% unplanned purchase followed by
scheduled online grocery players
at 33% and Kirana stores at 17%
7% • Prior to the advent of quick
commerce, Kirana stores were
the primary destination for
unplanned grocery purchases
Kirana stores Quick commerce Online grocery Supermarkets due to their convenient locations
apps players like Amazon and flexible operating hours.
and Flipkart

Quick Commerce Preferred Method for Buying Groceries Online
What is your preferred mode of buying these items for the following categories
(%)
E-Commerce(2–3 day delivery) E-Commerce(Same day delivery)
E-Commerce(4 hour delivery) Quick commerce(10–15 minute delivery)
Grocery 21% 30% 16% 33%
Personal Care 29% 36% 18% 17% Key Insights

OTC Drugs 31% 31% 19% 19% • With its emphasis on speed,
Books 41% 31% 17% 10% convenience, and reliability, quick
commerce has become the
Toys 42% 31% 16% 10% preferred method for buying
Footwear 46% 30% 15% 9% groceries online
Clothing 46% 32% 15% 8%
• Personal care and OTC drugs are
the next categories rated high for
Sports and… 47% 30% 15% 8% quick commerce
Jewellery 49% 29% 15% 8% • For categories with high average
selling price like appliance,
Car Parts 49% 28% 15% 8%
electronics, homeware and
Mobile Phones 52% 30% 13% 5% mobile phone pricing and no cost
Homeware &… 54% 25% 14% 7% EMIs plays a bigger role than the
speed of delivery
Electronics 54% 27% 11% 8%
Large Appliances 59% 23% 13% 5%

66% Customers Find Better Value For Money On Quick Commerce
as Compared to Kirana Stores
On a scale from 1 to 5, how would you rate the value for money provided by your preferred quick commerce platform
compared to Kirana stores?
(%)
39%
Key Insights
• A significant majority (66%) of
27% customers perceive better value
for money when using quick
23% commerce platforms compared
to traditional Kirana stores
• Beyond competitive pricing,
these platforms often provide
exclusive deals, discounts, and a
wider selection of products,
6% making them more appealing
4% than Kirana stores
• The perceived value offered by
quick commerce platforms can
1 - Much worse 2 - Worse 3 - About the 4 - Better 5 - Much better indeed lead to customer
same switching from Kirana stores

Quick Commerce Platforms are Cheaper than Kirana Store Across
Categories
Do you find quick commerce platforms to be generally cheaper than your local Kirana store for the following
categories
(%)
Yes No Don’t know
Home Care 75% 20% 4%
Personal Care 76% 21% 3%
Dairy 77% 21% 2%

Key Insights
• Quick commerce platform are
Fruits & considered cheaper than Kirana
Vegetables 80% 18% 2%
stores
• This along with the convenience
Packaged of getting products in 10
Food 81% 17% 2%
minutes makes quick commerce
a superior product offering as
compared to Kirana stores
Snacks 83% 15% 2%

Nearly 53% of Buyers Place More than 5 Orders Monthly On
Quick Commerce
As a household how many orders are you placing each month on Quick Commerce Apps?
(%)
33% Key Insights

• As customers increasingly rely on quick
28% commerce platforms for their full month's
grocery needs, the average number of
orders placed per user is on the rise
• 53% of buyers place more than 5 orders
monthly while 26% places more than 10
orders monthly
• Mumbai and Kolkata leads in customers
14% placing more than 10 orders per month
13% on quick commerce
More than 10 orders per month

7%
6% Mumbai 30.3%
Kolkata 29.7%
Bangalore 28.2%
Delhi NCR 27.1%
Pune 22.7%
1-2 orders 3-5 orders 6-10 orders 11-15 orders 16-20 orders 20+ orders
Ahmedabad 21.5%
Hyderabad 21.3%
Chennai 18.0%

10-30 Minutes is the Average Delivery Time for ~72% Buyers
What is average delivery time on quick commerce platforms (Zepto, Blinkit, Swiggy Instamart) for your orders?
(%)
44%
Key Insights
29% • For nearly three-quarters (72%)
of online buyers, quick
commerce platforms live up to
their name by delivering orders
within a speedy 10-30 minutes
15%
• 55% of orders are delivered
11% within 20-minutes which is
critical for customers to rely on
quick commerce platforms for
2% unplanned and last-minute
purchases
Below 10 10-20 minutes 20-30 minutes 30 minutes+ Don’t know
Minutes

Nearly 67% of Buyers Have an Average Order Value of More than
₹400 on Quick Commerce
What is your average order value on quick commerce platforms (Zepto, Blinkit, Swiggy Instamart)?
(%)
Key Insights
35% • The average order value (AOV) in quick
32% commerce has been steadily increasing
and is anticipated to continue its upward
trajectory, driven by customers' growing
26% propensity to purchase from a broader
range of product categories
• Mumbai leads in average order value at
₹541 followed by Ahmedabad and Kolkata
Average Order Value (INR)
Mumbai ₹541
Ahmedabad ₹528
6% Kolkata ₹524
Bangalore ₹518
1% Chennai ₹514
Delhi NCR ₹494
Below INR 200 INR 200 - INR INR 400 - INR INR 600+ Don’t know Hyderabad ₹487
400 600 Pune ₹483

Grocery Items Leads in Categories Purchased on Quick Commerce
Which categories are you buying from quick commerce players (Zepto, Blinkit, Swiggy Instamart)?
(%)
Grocery & Kitchen

(Including Vegetable and
fruits, rice, atta, Dal, Bakery, 79%
dairy etc) Key Insights
• 79% buyers purchase grocery and
kitchen items from quick
Snacks & Drinks (Chips & commerce platforms followed by
Namkeens, Drink & Juices, 74% snacks & drinks at 74%
Tea, Coffee, Sauces etc)
• This is driven by the fact that
customers value the convenience
of having essential, daily-use items
Household Essentials delivered rapidly to their doorstep
(Home, lifestyle, electronics, 47%
books, toys, pet care etc) • Household essentials comes third
at 47% followed by beauty &
personal care at 42%
• Quick commerce is taking
demand from Kirana stores for
Beauty & Personal Care 42% beauty & personal care

Bakery & Biscuits Preferred items Followed by Fruits & Vegetables
What grocery and kitchen items did you purchase on QUICK COMMERCE during last three months?
(%)
Bakery & biscuits 72%
Fruits and vegetables 71%
Oil, Ghee & Masala 69%
Atta, Rice & Dal 68%
Breakfast, Cereals &

Sauces 64%
Masala & Dry Fruits 64%
Dairy 63%
Eggs 46%
Chicken, meat and

Fish 43%
Others, Please specify 0%
Source: Datum Online Grocery Study 2024, (n=2,402 online adults buying grocery on quick commerce apps)

Chips & Namkeens Preferred Snack items Followed by Drinks &
Juices
What snacks and drinks items did you purchase on QUICK COMMERCE during last three months?
(%)
Chips & Namkeens 73%
Drinks & Juices 71%
Sweets & Chocolates 71%
Ice Cream 60%
Instant Food 60%
Tea, Coffee and Milk

Drinks 58%
Frozen Food 47%
Paan Corner 26%
Source: Datum Online Grocery Study 2024, (n=2,232 online adults buying snacks and drinks on quick commerce apps)

Skincare and Face Products Leads in Beauty & Personal Care
What Beauty & Personal Care items did you purchase on QUICK COMMERCE during last three months?
(%)
Skincare and Face 73%
Hair Care 70%
Bath & Body 69%
Makeup & Beauty 69%
Health & Pharma 56%
Baby Care 49%
Feminine Hygiene 49%
Sexual Wellness 36%
Source: Datum Online Grocery Study 2024, (n=1,276 online adults buying beauty and personal care on quick commerce apps)

Cleaners & Repellents Leads in Household Essentials
What Household Essentials items did you purchase on QUICK COMMERCE during last three months?
(%)
Cleansers & Repellents (Detergents, Laundry additives,

dishwashing gels, toilet cleaners, floor cleaners etc.) 63%
Home & Lifestyle (bedsheets, decorative lights, plants,
fresheners, tissues etc. ) 56%
Personal appliances like trimmers, straighteners, dryer,
Massagers 52%
Products based on festive needs like Holi, Diwali,
Halloween 52%
Fashion 49%
Kitchenware & Appliances 48%
Headphones 48%
Stationary & Games 45%
Pooja Items 41%
Gifting 41%
Books & Magazine 40%
Toys 39%
Pet food and accessories 38%
Sports Equipment 37%
Power banks 34%
Source: Datum Online Grocery Study 2024, (n=1,432 online adults buying household essentials on quick commerce apps)

Role of Price is Limited as Customers Looking for Convenience
Please rank the following aspects of q-commerce based on their importance to you as a customer, with 1 being the
most important and 5 being the least important?
(%)
Order tracking and smooth delivery 4.0
Payment options 3.9
Ease of use of quick commerce mobile app 3.8

Key Insights
Expiry date of products 3.8 • As the majority of quick
Hygiene in Dark stores 3.7
commerce purchases center
around groceries and BPC
Assortment size
(choice of products within one category) and listing of favourite brands
3.7 products, price sensitivity is
currently less pronounced in this
Customer support service 3.7
sector
Punctuality of delivery 3.5
• This phenomenon can be
Detailed product descriptions 3.5 attributed to the convenience-
driven nature of these
Speed of delivery 3.2 purchases, where customers
Product quality
2.8
value rapid delivery over
(appearance, packaging, freshness)
potential cost savings
Delivery fees 2.7
• Pricing will become more
Availability of the products (in stock) 2.6 important as the quick
commerce market evolves and
Price of products 1.8 diversifies

Price Comparison Remains Relevant Despite Convenience-Driven
Purchases
Do you compare prices with various quick commerce platforms before making purchase?
(%)
Never, 3%
Key Insights
• 55% of quick commerce buyers check prices
• Despite the focus on convenience and speed,
shoppers still want to keep a check on
pricing, highlighting the importance of
Sometimes, competitive pricing strategies for quick
42% commerce platforms
Always, 55% Always Checks Price
Ahmedabad 64%
Delhi NCR 58%
Mumbai 58%
Hyderabad 57%
Kolkata 53%
Chennai 52%
Bangalore 50%
Pune 48%

38% Buyers Compare Price of Specific Items on Quick Commerce
In which of the following situations do you generally compare prices with other quick delivery platforms / apps before
making the purchase?
(%)
Prices seem to be higher on

specific items 38%
Key Insights
• A significant portion (38%) of online
Only when cart value is very buyers actively compare the prices of
high 23%
specific items across quick commerce
platforms, seeking the best deals and
value for their purchases
Comparison for first few orders • Due to the complexity of comparing
from the quick delivery app 19%
prices across different grocery items
and platforms, only 19% of buyers
engage in price comparisons for their
Not getting desired discount 10% initial orders
• Once trust is established, customers
are more likely to continue using the
Other charges are high platform without the need for constant
(delivery fee, packing charges, 9% price comparisons, prioritizing
convenience fee, etc.) convenience and reliability over
potential price differences.

Blinkit Preferred Followed by Zepto and Swiggy Instamart
Which of the following quick commerce retailer (s) have you bought?
(%)
Blinkit 65%
Zepto 55%
Swiggy
Instamart 55%
Key Insights
BigBasket 50% • Blinkit preferred platform
followed by Zepto and Swiggy
Instamart
Jiomart 35%
• Blinkit's popularity can be
attributed to its effective blend of
Flipkart rapid delivery, wide product
Minutes 14%
assortment, and user-friendly
interface
Country Delight 13%
• Blinkit most popular in Delhi NCR
while Swiggy Instamart leads in
Others 4% other cities closely followed by
Blinkit and Zepto

76% Customers Are Satisfied with the interface and Experience of
Quick Commerce App
How satisfied are you with the user interface and experience of your preferred quick commerce app?
(%)
41%
34%
Key Insights
• The slow adoption of online
grocery shopping can be
attributed to a combination of
16% factors, including poor user
interfaces, unsatisfactory app
experiences, and extended
delivery times
• Quick commerce platforms
5% 4% made apps easier to use,
provided better shopping
experiences, and sped up
Very unsatisfied Unsatisfied Neutral Satisfied Very satisfied delivery times

High Delivery Fees and Late Delivery Key Challenges
What challenges or frustrations do you often face when using quick commerce platforms?
(%)
High delivery fees 39%
Delayed delivery 36%
Lack of product variety 31% Key Insights

• High delivery fees and delayed
Payment issues 26% delivery are the key areas
Limited availability of where customers feel frustrated
brands 25%
with quick commerce platforms
Poor customer service 25% • Late deliveries not only
undermine the primary value
Difficulty in navigation 25% proposition of quick commerce
but also erode trust in the
Bad packaging 25%
platforms' reliability and
High platform fees 23% efficiency
• A significant proportion of
Poor quality of products 22% buyers (31% and 25%,
respectively) express concerns
Expired products 22% regarding the limited variety of
brands and products available
Others, please specify 1%
on quick commerce platforms.

66% Buyers Experience Delivery Delays on Quick Commerce
How often do you experience delivery delays when using quick commerce platforms?
(%)
40%
28%
13% 14%
6%
Never Rarely Sometimes Often Always

65% Customers are Satisfied by the Customer Support Provided
on Quick Commerce
How satisfied are you with the quality of customer support provided after a purchase on quick commerce platforms?
(%)
40%
25% 25%
6%
4%
Very unsatisfied Unsatisfied Neutral Satisfied Very satisfied

62% Customers are Very Loyal to Quick Commerce Platform
How loyal do you consider yourself to be to your current quick commerce platform?
(%)
36%
Key Insights
• When it comes to buying
26% groceries, customers generally
25%
exhibit a strong inclination to stick
with their preferred stores, often
without considering alternatives
• 62% of customers exhibit strong
loyalty to their chosen quick
commerce platform, suggesting
that these services have
9%
successfully fostered customer
retention and repeat business
2%
• This level of loyalty is likely driven
by factors such as convenience,
speed, reliability, and overall
Not loyal at all Slightly loyal Moderately Very loyal Extremely loyal satisfaction with the platform's
loyal offerings and user experience.

Product Quality, Fast Delivery and Lower Prices Key Motivation to
Switch
What would make you switch from your current quick commerce platform to a new one?
(%)
Better product quality 53%
Faster delivery 49%
Lower prices 45%
Wider product range 43%
Easy returns and Key Insights

refunds 42%
• Customers considering a switch
Improved customer in quick commerce platforms
service 39%
are primarily motivated by three
More payment options 35% factors: product quality, fast
delivery, and lower prices
Availability of Buy now • 43% of buyers consider wider
Pay Later option 31%
product range as key
Lower delivery and motivation of switching making
platform fees 25%
quick commerce platform to
add more brands and
Other (please specify) 0% categories

10% Increase in Price Can make 62% Customers to Switch
If prices were to increase by 10% on your preferred quick commerce platform, how likely would you be to switch to
another platform or go back to shopping at Kirana stores?
(%)
35%
26% 26% Key Insights

• Despite the overall loyalty to their
preferred quick commerce platforms,
62% of customers indicate that a 10%
price increase could drive them to
explore alternative services.
• While customers value convenience and
speed, they are also price-sensitive and
7% may revaluate their choices if the cost of
5% using a platform becomes too high
• When shopping on quick commerce
platforms, customers tend to be selective
in their price checking habits, focusing
Very unlikely Unlikely Neutral Likely Very likely primarily on specific products rather than
comparing prices across the board

Mumbai and Bangalore Buyers Are More Likely to Switch Due to
Increase in Pricing
If prices were to increase by 10% on your preferred quick commerce platform, how likely would you be to switch to
another platform or go back to shopping at Kirana stores?
(%)
Unlikely Neutral Likely
Key Insights
• Quick commerce buyers in Mumbai and
56% 55% Bangalore are demonstrating increased
63% 62% 62% 62% 61% likelihood of switching quick commerce
67%
platforms in response to price increases,
highlighting the importance of
competitive pricing in these markets
• These cities are also home to a large
population of tech-savvy, well-informed
28% 29% consumers who are adept at using digital
26% 28% 27% 25% 25%
23% platforms to compare prices, find deals,
and switch providers as needed
13% 14% 16% 16% • The quick commerce market in these

10% 11% 11% 11%
cities is more competitive where multiple
i players are aggressively focus on
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CR at
a n e ad
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um ga e
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Free Delivery Most Compelling Promotion followed By Cashback
Which type of promotions do you find most compelling?

(%)
Free delivery 61%
Cashback
offers 53%
Key Insights
Buy-one-get- • Free delivery stands out as the
one-free 44% most compelling offer for
customers, closely followed by
Percentage cashback incentives
discounts 43%
• Quick commerce platforms are
Loyalty increasingly launching monthly
rewards 38% subscription passes to tackle
customer concerns regarding high
delivery fees
Flash sales 32%
• Quick commerce players are likely
to employ flash sales as a
Free samples 21% strategic tool to drive demand
during month-end periods and
Other (please promote specific products,
specify) 0% particularly those in higher selling
price categories

Impact of Quick Commerce
on Kirana Stores
Section 4
www.datumintell.com
Kirana Shops Experience Customer Shift to Quick Commerce
With respect to online shopping for Groceries how do you estimate your spend have changed after you
started buying on quick commerce?
(%)
Decreased buying
groceries from Kirana 46%
shops
Key Insights
Decreased buying
groceries from
• Nearly half (46%) of
Hypermarket / 36% respondent's report reduced
Supermarkets spending at Kirana shops,
indicating a shift in customer
behavior towards quick
commerce platforms
Decrease buying
groceries from Amazon 34% • Quick commerce platforms
and Flipkart have significantly altered
customer shopping behavior,
resulting in decreased
Decreased buying from patronage of hypermarkets
beauty and personal (36%) and scheduled grocery
care products Nykaa / 28%
services (34%
Purplle / Myntra
• Expect reduction in buying from
beauty specific retailers

Kirana Shops Face Customer Erosion Due to Quick Commerce
With respect to online shopping for Groceries and beauty & personal care how do you
estimate your spend have changed after you started buying on quick commerce?
(%)
Key Insights
Stopped buying
groceries from • Nearly 5% customers indicated that they
Hypermarket / 6% stopped shopping grocery from traditional
Supermarkets channels including hypermarkets, kirana shops
and scheduled online grocery players
• Kirana stores often operate on thin margins and
Stopped buying from lack the resources to invest in technology or
beauty and personal
care products Nykaa / 6% logistics infrastructure, making it challenging for
Purplle / Myntra them to match the speed and convenience
offered by quick commerce
• Hyderabad and Ahmedabad leads in customers
Stopped buying stopping buying from kirana shops
groceries from Kirana 5%
shops Stopped buying groceries from Kirana shops
Hyderabad 8%
Ahmedabad 7%
Stopped buying Kolkata 6%
groceries from 5% Bangalore 5%
Amazon and Flipkart Delhi NCR 5%
Pune 5%
Mumbai 4%
Chennai 4%

76% Buyers Will Increase Buying Grocery on Quick Commerce;
Kirana Stores to See Maximum Reduction
Looking ahead to the next six months, how do you think your consumer behaviour will change
across the following activities
(%)
Increase Decrease No Change
9% 15% 13%
19% 18%
15%
19%
20% 32%
30%
76% Key Insights

66% 61% 55% 52% • 76% of buyers expressing their
intention to increase grocery
purchases on quick commerce
platforms
Buying Grocery Buying Grocery Buying Beauty Buying Grocery Buying Grocery • Kirana stores are expected to
online on quick online on and Cosmetics in Kirana stores in
commerce Amazon and on Nykaa / Hypermarkets experience the greatest
platforms Flipkart Myntra / and reduction in sales as customers
Mamaearth Supermarkets shift their shopping habits
towards more convenient and
faster options

Over 82% of Buyers Have Moved At least 25% of Kirana Purchases
to Quick Commerce
What percentage of your shopping from Kirana shops has been moved to Quick Commerce?
(%)
50-75% 31%
25-50% 23% Key Insights

• 82% of buyers moving at least
25% of their Kirana store
75-99% 18% purchases to quick commerce
platforms
• 31% have moved more than 50%
of shopping from Kirana shops to
100% 10%
quick commerce
• Customers are increasingly
prioritizing speed and ease of
10-25% 11% access
• Kirana stores are indeed
struggling to keep up with quick
0-10% 7% commerce platforms due to the
latter's competitive pricing and
superior convenience

67% Kirana Stores Saw Decline in Sales After the Emergence of Quick
Commerce
What is the impact on sales from your store after the emergence of Quick Commerce?
(%)
33%
23% Key Insights

• 67% of kirana stores have
20%
reported a decline in sales since
the emergence of quick
commerce platforms, reflecting
the shifting preferences of
customers towards digital retail
10% channels
4% 4% 3% 3%
Decrease by more Decrease by 26% Decrease by 1% - Stay ab out the Increase b y 1% - Increase b y 26% - Increase b y more Don’t know
than 50% - 49% 25% same 25% 49% than 50%
Source: Datum Online Grocery Study 2024, (n=300 Kirana stores)

Groceries and Fruits and Vegetable Sales from Kirana Stores Most
Impacted by Quick Commerce
According to you which of the following category is most impacted by quick commerce?
(%)
Groceries (rice, wheat, pulses, etc.) 51%
Fresh fruits and vegetables 48%
Festive related items 38%
Dairy products 37%

Frozen foods (ice cream, Frozen vegetables
etc.) 33%
Beverage (tea, coffee, soft drinks etc.) 33%
Egg 33%
Snacks and confectionary 31% Key Insights

Bakery items 30% • Product categories sold by kirana
Stationary and school supplies 27% stores, groceries and fruits &
Baby care products 27%
vegetables have been the most
Household essentials (cleaning supplies, heavily impacted by the rise of
27%
detergents etc.) quick commerce platforms
Personal care and hygiene products 26%
• Quick commerce platforms have
Health and wellness products 26% emerged as a popular choice for
Tobacco products 26% festive-related purchases,
Pet food and accessories 22%
challenging the traditional
dominance of kirana stores in this
Newspaper and magazines 15%
segment

67% Kirana Stores Saw Decline in Sales After the Emergence of Quick
Commerce
What is the impact on sales from your store after the emergence of Quick Commerce?
(%)
33%
Key Insights
• 67% of kirana stores have
23% reported a decline in sales
since the emergence of quick
20% commerce platforms,
reflecting the shifting
preferences of customers
towards digital retail channels
10%
4% 4% 3% 3%
Decrease by more Decrease by 26% Decrease by 1% - Stay ab out the Increase b y 1% - Increase b y 26% - Increase b y more Don’t know
than 50% - 49% 25% same 25% 49% than 50%

Commentary on Impact
Name Period Commentary
All India Consumer Products Distributors Federation (AICPDF), a body that represents FMCG distributors in
All India the country, has claimed that an estimated 2 lakh Kirana stores have shut down in the last year, due to the
Consumer rapid expansion of quick commerce along with the economic slowdown.
Products Oct-24 The industry body said that Kirana stores in metros have seen the most impact. Nearly 45 per cent of the 2
Distributors lakh Kirana stores that have shut down are in metro cities, followed by Tier 1 cities (30 per cent) and Tier 2/3
Federation cities (25 per cent).
(AICPDF), The body claimed that about 90,000 Kirana stores in metro cities, 60,000 in Tier 1, and 50,000 in Tier 2/3 cities
have had to shut shop.
The expansion of quick commerce platforms could give a bigger blow to kirana stores and impact their
Elara Capital Oct-24 businesses, as per a report by brokerage firm Elara Capital. The firm had highlighted in a previous report that
quick commerce platforms could wipe off around 25-30 per cent of kirana stores.
Kirana Store
Owner in Oct-24 We've noticed a 20-25% in the number of customers visiting our store since the rise of quick commerce
Chennai platforms
Kirana Store
Oct-24 To keep up with the trend, we've started listing our products on online platforms and offering home delivery
Owner in
Bengaluru services, but it's a challenge to compete with the deep discounts offered by quick commerce players.
Kirana Store Customers are comparing prices with quick commerce apps and asking for discounts, which is very difficult for us
Oct-24 to offer.
Owner in Delhi
Kirana Store The offer of free delivery and credit is also not good enough to retain the customers as quick commerce players are also
Oct-24
Owner in offering the same along with fast delivery.
Kolkata
Source: Press Release, Interviews

Kirana Stores Perceive Quick Commerce as a Persistent Challenge
Do you feel that quick commerce poses a long-term threat to the viability of traditional kirana stores?
(%)
Don't know,
2.0%
No, 23.7%
Key Insights
• 74% of kirana store owners view
quick commerce as a long-term
threat to their businesses,
indicating a deep sense of
uncertainty and anxiety within the
traditional retail sector
Yes, 74.3% • As quick commerce continues to
gain traction, kirana store owners
are increasingly concerned about
their ability to compete with the
advanced technology, aggressive
pricing strategies, and efficient
logistics of digital retail platforms

$1.28 Billion of Kirana Sales Expected to Move to Quick Commerce
46% 67% Shift of Kirana Store Sales to Quick Commerce

(%)
respondent reduced buying from Kirana stores saw decline in sales after
Kirana shops the emergence of quick commerce
5% 82% Sales Shift from

respondent stopped buying from of buyers have moved at least 25% of Kirana
Kirana shops Kirana purchases to quick commerce 21%
$1.28 Billion
of Kirana sales are expected to
move to quick commerce in 2024
Total Kirana Stores – 13 Million

• Kirana Stores in Metros – 1.7 Million
• Kirana Stores in Tier 1 Cities – 1.3 Million Sales Shift from
Other Channels*
• Average Monthly Sales of Kirana Stores - ₹303,000 79%
• Quick Commerce estimated market 2024 - $6.01 billion
Notes: * Includes incremental sales generated by quick commerce platform
Source: Datum Online Grocery Study 2024, (n=3,032 online grocery buyers in10 cities), Datum Analysis

Key Definitions
• Retail Sales. Retail involves selling consumer goods, excluding travel, cars, prescription drugs,
restaurant sales, and gasoline sales.
• Online Retail Sales. Online retail refers to the process of purchasing goods and services through the
Internet, where customers make financial commitments, typically via credit cards or other digital
payment methods. This definition includes transactions made on mobile devices, web-enabled
kiosks, and point-of-sale systems, with delivery options either at home or in-store. In-store pickup,
where the purchase and payment are completed online, is also considered an online sale within the
context of online retail.
• Online Buyers. Online buyers are defined as people who have completed at least one online
purchase within the past 12 months.
• Online Retail Sales Via Mobile. Online retail sales by mobile refer to purchases made through mobile
devices, such as smartphones and tablets, where customers browse, select, and pay for products
or services via mobile applications or mobile-optimized websites.

Category Definitions (1/2)
Category Name Definitions
Computer Hardware. includes desktop computers, laptops, netbooks, and tablet PCs, but also a wide variety of
Computer Hardware and peripheral devices such as keyboards, monitors, printers, cartridges, computer cables, and parts.
Software Software. Includes software packages such as operating systems, anti virus software, languages, video game
software. Includes digital downloads
Mobile. Smartphones and featurephones

Video. including TVs, home entertainment systems, DVD players, and recorders, game consoles, static audio (such as
Consumer Electronics hi-fi systems, CD players, and turntables), portable audio, car audio, and home communications equipment (such as
telephones and other terminal equipment).
Wearables. AR VR devices , smart glasses , smart rings etc.
Includes toiletries such as shaving cream, razors, oral care products, bath and shower gel, deodorants, baby and
childcare products, depilatories, and sanitary products. This category also encompasses Haircare products like
Personal Care shampoo, colorants, mousses, etc., as well as Fragrances such as perfumes, aftershave, and scented oils. Color
Cosmetics like lip- and eyeliners, powders, foundations, nail polish, mascaras, and lipstick are also included in this
segment.
Books. Hardback and paperback books, audiobooks, eBooks, and magazines.

Books and stationery
Stationary
Music and Video CDs, digital downloads, streaming services, VHS, and DVDs. Includes digital downloads.
Clothing All clothing, including men's, women's, kids', and teens'. Includes sportswear
Footwear. Includes athletic, leather, non-rubber. Includes men's, women's, kids', and teens'.
Footwear, Luggage, Jewellery
Jewellery. Fine jewelry, imitation jewelry, watches.
and Accessories
Luggage

Category Definitions (1/2)
Category Name Definitions
Small Appliances. Kitchen electrical (blenders, toasters, and food processors), home environment (humidifiers,
dehumidifiers, air purifiers), floor care (vacuums), dinnerware, beverageware, cookware, bakeware, cutlery, flatware,
Appliances linens, draperies, and window dressings
(personal and home) Big household appliances (or white goods) such as refrigerators, ovens, and vacuum cleaners, television
Personal appliances. Includes hair care appliances, body shavers, electric facial cleansers, oral care appliances and
other personal care appliances.
Household furniture and décor such as textiles such as curtains, carpets, and cushions.
Homeware. Plasticware; glassware; dinnerware, ceramics; porcelain; cutlery; metalware; and woodware.
Homeware and furniture Outdoor. BBQ's, garden sheds and outdoor furniture
Lighting sources and light fixtures
Does not include live animal sales or vet services.
Toys Traditional toys, not including video games.
Grocery Food and beverage sales, including canned goods, produce, etc. Does not include restaurant sales.
Movie Tickets Movie tickets (box office)
Event Tickets Event tickets
Sports and entertainment All sporting goods equipment, including sporting products and fitness equipment. Does not include apparel and
goods footwear.
Pets Pet food, supplies, and over-the-counter medicine. Does not include live animal sales or vet services.
Personal Luxury Goods Luxury apparel, leather goods, footwear, Jewellery, watches, cosmetics and accessories

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State of Quick

As the retail landscape in India undergoes a rapid

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 2

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 3

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 4

India Grocery Market By Sales 2023-28

2018 2023 2024 (F) 2028 (F)

Source: Datum Analysis

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 6

Grocery Market By Sales Channels, 2023

Source: Datum Analysis

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 7

SKU Assortment by Retail Channels Average Order Value by Retail Channels

Source: Datum Analysis

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Daily 4-6 times a week 2-3 times a week Once a week

Dairy 44% 17% 17% 9% 3% 8% 2% Key Insights

Meat 2%7% 31% 43% 10% 7%

Source: Datum Analysis, Zepto, HSBC Research

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 9

Quick commerce Simple User 10,000 SKUs curated by

Dark stores managed Baskets typically includes

Source: Datum Analysis, Prosus Investor Relations

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 11

Start of Operations Jan -22 Aug-20 Apr-21 Dec-21 Aug-24

Number of Cities 40 43 10+ 35 3

# of Dark Stores 791 557 350 400 40

# of Daily orders 10,00,000 800,000-10,00,000 700,000-750,000 400,000 50,000

Avg order Value (₹) ₹660 ₹487 ₹470 ₹400-500 ₹300-400

# of SKU’s 7,000+ 12,000+ 10,000+ 6,000+ 7,000-10,000

Loyalty Program NA Swiggy One Zepto Pass NA NA

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 12

#1 Supply chain design

#2 End-to-end proprietary technology

Source: Zomato Investor Relations.

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 13

Commissions retained less

1 Received from User/Brand partner Delivery Partner

2 Paid to Merchant/Delivery partner

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• Frequent and timely top-up purchases for immediate needs

• High fill rate and quick delivery time

• Meets diverse customer demands across categories

Source: Zomato Investor Relations. Datum Analysis

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 15

• FMCG companies optimizing • Ad spend on quick

Source: Prosus Investor Relations. Datum Analysis

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 16

Traditional Producer Distributor Wholesaler Retailer Consumer

Quick commerce offsets

10-15% margins retained by platform; rest passed on to the consumer

Source: Goldman Sachs, Datum Analysis

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 17

Product Margin Available to Quick Commerce Platforms

20-25% 20-25% 20-25%

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 18

Q1FY23 Q2FY25 Q3FY23 Q2FY25 Q1FY23 Q2FY25

Source: Zomato Investor Relations. Datum Analysis

©2024 Datum. All rights reserved. Reproduction prohibited. www.datumintell.com 19