It could be a battle to challenge David with the giants, or a fast-moving consumer goods company with fast-trading startups – a story as a collaboration rather than a competition.
Even FMCG giants such as Godrej Consumer Products Ltd, Marico Ltd and Dabur Ltd are learning to adapt to the most effective features on fast trading platforms, although these startups have not yet posed a significant threat to their businesses or provided significant opportunities.
Godrej consumer products, for example, have designed Cinthol foam shower gel and Park Avenue gift sets for sale on fast business platforms. It also graduated from dispatch small packages that can be sold on these fast delivery platforms to larger variants for sale, such as 3-liter laundry liquid bottles instead of 1-liter packaging.
“The rapid trade (sales) of Godrej Consumer Products has increased 2 times compared to last year,” said Krishna Khatwani, head of sales at Godrej Consumer Products (India).
“The company is testing new releases and innovations on these platforms and working with the platforms to unlock activities. Giveaways, for example, is growing exponentially in fast commerce,” Hartwani said. “In the initial days, fast business was more convenient and a desktop-led format. As the channel now expands, we sold a large portion of these platforms Assortmenton.”
However, Khatwani added that he expects growth on fast business platforms to “gradually decrease once the expansion is stable and stable.”
Quick business quick draw
To be sure, fast commerce still has a relatively small share in fast-moving consumer goods sales. But given their increasing popularity, especially in urban markets where consumption is slowing, fast commerce has become a sales channel for fast-moving consumer goods companies.
Business consulting firm Redseer Pegs India’s fast business market has expanded to $9.95 billion from $3.34 billion in 2024 to $9.95 billion in 2029.
Mumbai-based Marico has begun offering oats, cooking oils and hair oils in different packaging sizes at prices suitable for fast commercial use.
“Fast business is clearly the biggest driver of growth and we have realized that we need to have a differentiated portfolio in the fast business space…The growth of fast business is over 50%,” said Saugata Gupta, Managing Director and CEO during Marico . On January 31, a call with analysts.
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Nestle India Ltd is also adjusting its portfolio to fit online channels.
“We have a portfolio tailored to shopper needs, which focuses on e-commerce and fast commerce,” said Suresh Narayanan, chairman and managing director of Nestlé India, in a call with analysts in early February. The advantage is that our capabilities and our supply chain management have been greatly improved. ”
Supply Chain Upgrade
Fast business startups such as Zepto, Swiggy’s Instamart and Zomato’s Blinkit are all in operation for several years and are still looking for sustainable growth and profitability.
But their speeds – from groceries and electronics to 10-15 minutes of outdoor products, are forcing FMCG companies to rethink how to improve efficiency in their supply chains.
“We have to challenge ourselves because consumers will challenge us. Blinkit asked us a question, saying I delivered it in eight minutes, why would it take two days?” said Narayanan of Nestlé India. “So, Nestlé put it on Hat, put on it, run, push the system, put the practice, and make sure at least we make sure at least we make sure at least we make sure at least we make sure at least we make sure that we make it down to a day, hopefully now we’ll drop it down to a few hours.”
Currently, e-commerce platforms account for about 8.5% of Nestlé’s domestic business in India.
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Dabur India is also launching a joint business plan and creating new products for online business platforms.
“We are strengthening our relationships and ties with e-commerce and fast business players and working with them on business plans, creating new products for them, connecting with them every month and quarter, and seeing us constantly in Quick Commerce Development Stocks Dabur India CEO Mohit Malhotra said on the company’s revenue call in November, as well as e-commerce portals like fast business channels like Swiggy, Instamart, Blinkit and Zepto,” Dabur India CEO Mohit Malhotra said on 11 said on the company’s revenue call in the month.
Having said that, fast commerce is still a big city phenomenon. According to 2024 data from market research firm Kantar, the top 9 metropolitan retailers in India have a market penetration rate of 8% in FMCG products.
“In the metro market, FMCG companies have a market share of about 6-8%, but within the pan-India range, its market share has dropped to less than 2%,” said Karan Taurani, senior vice president of Elara Capital.
He stressed that fast trade is expected to expand rapidly in the FMCG space, mainly because traditional retail channels are stagnating or experiencing slow growth.
