New Delhi [India], November 21 (ANI): Quick commerce has emerged as the favored mode for daily essentials, with 85 per cent of respondents choosing it for food and grocery purchases, observed a report by Grant Thornton Bharat.
As per the report, clothing and accessories lead in e-commerce platforms, capturing 75 per cent of volume sales.
For high-value purchases, however, physical stores remain the top choice, with more than 50 per cent of respondents preferring in-store shopping for high value premium products.
Customers’ preference for physical shopfronts when buying high-end goods emphasises their desire for tactile experiences and quality guarantees, which physical retailers still provide, the report adds.
As per the observation of the report, the traditional stores face significant challenges despite their enduring appeal for high-value purchases.
Nearly 38 per cent respondents cite limited product range as a major drawback, while 37 per cent point to higher prices as a key deterrent.
In response, retailers are increasingly adopting hybrid models, merging the reliability of physical stores with the convenience of digital platforms. By expanding product offerings, offering competitive pricing, and providing delivery options, these models enhance customer satisfaction and trust.
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, added the report.
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.”
The report adds that the rapid rise of quick commerce presents opportunities but also brings operational challenges that impact scalability and profitability.
It adds that the 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 Rs 300-500.
It points out that Q-com and e-commerce platforms must focus on operational efficiency, sustainability, and building consumer trust to overcome the current chanllenges.
Leveraging AI-driven data analytics can improve inventory management and optimize delivery routes, balancing both cost and speed, it adds.
Partnerships with local retailers can expand hyperlocal distribution, broadening product choices while reducing dependency on central warehouses, the report added. (ANI)
