The quick commerce sector in India, represented by giants like Zomato, Swiggy, Blinkit, and Zepto, is expanding rapidly. This growth is significantly impacting traditional kirana stores. However, the unique resilience of kiranas and strategic adjustments by consumer goods companies indicate that both segments can coexist, catering to distinct customer bases.
The quick commerce market, powered by platforms like Swiggy Instamart, Blinkit, and Zepto, is experiencing exponential growth. A report by Bernstein forecasts a 75% year-on-year growth for the sector in 2025, compared to the low-teens growth projected for traditional retail. Notably, dark store networks for Blinkit and Zepto have already surpassed FY25 targets, with over 1,000 and 700 stores, respectively.
Quick commerce is also venturing into smaller cities, beyond the top-tier metros, signaling a strategic push to penetrate untapped markets. Companies like PhonePe are pivoting to quick commerce, with services such as 15-minute deliveries now live in multiple cities.
The rise of quick commerce has significantly affected kirana stores, with nearly 46% of consumers reporting reduced purchases from these traditional outlets. According to a Datum Intelligence survey, over 82% of shoppers have shifted at least a quarter of their grocery spending to quick commerce platforms.
Despite these challenges, kirana stores remain a vital part of India’s retail ecosystem, particularly in rural areas and tier-2 and tier-3 cities, where quick commerce’s profitability is limited.
Major FMCG players like Hindustan Unilever, ITC, Parle Products, and Adani Wilmar are reshaping strategies to support kiranas while aligning with new shopping trends. For example, Parle has introduced exclusive packs for kiranas, priced lower than those available on quick commerce platforms. Similarly, ITC and Adani Wilmar are launching separate product lines to cater to both channels.
These efforts aim to strengthen kiranas’ competitive edge, particularly in serving price-sensitive customers who prefer small-value packs.
The quick commerce sector faces scrutiny over pricing practices. Complaints from the All India Consumer Products Distributors Federation (AICPDF) and other trade bodies allege predatory pricing and anti-competitive behavior. Moreover, concerns have arisen about platform pricing discrepancies between Android and iOS users, as well as potential conflicts with restaurant partners over private-label offerings.
Additionally, kirana stores are increasingly adopting digital solutions to compete. Platforms like Kiko Live enable these stores to create online storefronts and leverage networks such as ONDC, offering customers an enhanced shopping experience.
India’s 13 million kirana stores continue to be the backbone of FMCG distribution, particularly in rural markets. Analysts believe that while quick commerce will dominate high-value purchases and urban markets, kiranas will maintain their stronghold in small-value transactions and regions less profitable for quick commerce.
As the retail landscape evolves, the coexistence of online and offline channels seems inevitable, with both sectors carving out distinct niches to serve India’s diverse consumer base.