Offline Retailers Embrace Quick Commerce

Home Offline Retailers Embrace Quick Commerce

Economy

Sep 16, 2024

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Context:

Offline retailers, including grocers, are joining the quick commerce trend by integrating rapid delivery services into their operations.

About Quick Commerce:

Quick commerce refers to ultra-fast delivery services (typically within 10-30 minutes) of groceries, essentials, and other consumer products.
In India, startups like Zepto, Blinkit, and Swiggy Instamart have pioneered this model, fueled by Urbanisation, Consumer Expectations and Tech-Enabled Supply Chains.

India’s quick commerce sector has experienced explosive growth, expanding by 77% in 2023 and reaching a Gross Merchandise Value (GMV) of $2.8 billion, according to Redseer. Currently, online orders account for 10% of its overall sales.
However, this trend is primarily concentrated in major metropolitan areas, despite this rapid growth in quick commerce, traditional trade remains dominant in the Indian market.

Small local shops, chemists, and grocery stores still account for 88% of fast-moving consumer goods (FMCG) sales nationwide.

Quick commerce reflects Commodity Fetishism and Hyper-lapse consumerism.

Adapting Offline Retailers to Quick Commerce:

Dual Strategy Approach:

Logistics Investment: Offline retailers are enhancing their logistics capabilities to compete with the quick commerce trend, which emphasises rapid delivery times. This includes partnering with third-party logistics providers and bolstering in-house delivery fleets.

Core Strength: While investing in quick delivery options, these retailers continue to leverage their traditional strength—providing an in-store shopping experience.

Examples of Adaptation:

MK Retail: The company is reducing its home delivery window from 30 minutes to 15 minutes.

By collaborating with logistics providers such as Loadshare and PhonePe’s Pincode, MK Retail aims to capitalise on the quick commerce trend while maintaining its physical retail presence.

The Organic World: Based in Bengaluru, this retailer is currently offering next-day deliveries and plans to reduce this to under one hour in the future.

Reliance Retail: In June, Reliance Retail began testing a one-hour delivery service for groceries and fast-moving goods in select areas of Mumbai and Navi Mumbai.

Commodity Fetishism and India’s Quick Commerce

Commodity fetishism, a concept introduced by Karl Marx in Das Capital, refers to the perception of social relationships in capitalist societies as relationships between commodities or objects, rather than between people. In this context, commodities appear to possess intrinsic value, independent of the labour and social relations that produced them. The concept highlights how the social character of labour gets obscured, making commodities seem like entities with lives of their own.

Brand Fetishism in Modern Society:

Today, brand culture intensifies commodity fetishism, with consumers prioritising brand names and status symbols over the actual quality or use-value of products. Luxury items, endorsed by celebrities, carry an aura of sophistication, further detaching the consumer from the labour behind the product.

Application to India’s Quick Commerce:

India’s rapid expansion of quick commerce provides an interesting lens to analyse commodity fetishism.
Obscured Labour in Quick Commerce
Quick commerce platforms like Zepto and Blinkit rely on gig workers for fast deliveries, yet consumers remain detached from the challenging labour conditions—long hours, low wages, and job insecurity—these workers face. The focus is on speed, with little visibility into the workers’ struggles.

Value of Speed Over Substance

In quick commerce, speed is commodified, with convenience becoming the product itself. This emphasis on rapid delivery overshadows concerns about product quality, labour practices, and environmental impacts, creating the illusion that speed is of inherent value.

Alienation and Consumerism

Quick commerce fosters consumer alienation, disconnecting people not only from the labour behind the service but also from local vendors and communities. Consumers interact with faceless platforms, reinforcing the prioritisation of instant gratification over community engagement.

Hyper-lapse consumerism and India’s Quick Commerce

Hyper- lapse consumerism refers to the accelerated pace at which consumers purchase and dispose of goods in the modern world.

India’s Quick Commerce Connection to Hyper-Lapse Consumerism

Instant Gratification: Quick commerce directly caters to hyper-lapse consumerism by offering fast access to products.
Frequent Consumption: With products like groceries and daily essentials being delivered in minutes, consumers may purchase more frequently, potentially leading to overconsumption.
Environmental Impact: Like hyper-lapse consumerism, quick commerce may contribute to environmental concerns due to increased packaging waste, fuel consumption for deliveries, and strain on supply chains.

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