In Bengaluru, a couple out grocery shopping encountered higher prices at a local fruit and vegetable vendor compared to quick commerce apps, leading them to walk away despite the shopkeeper's insistence that the price difference was minimal. This scenario is becoming more common across urban India, where consumers are increasingly turning to quick commerce platforms for their grocery needs, resulting in a decline in sales for local kirana stores.
According to a report by Datum Intelligence, a significant portion of consumers have shifted a quarter of their kirana purchases to quick commerce apps, with some even completely stopping shopping at kiranas. This shift is expected to continue growing, reshaping the retail landscape and posing challenges for kirana stores in retaining their customer base. While some loyal customers still prefer the traditional kirana shopping experience, the trend of moving towards online platforms is evident, especially among the younger generation.
Despite kirana stores commanding a 92% share in India's grocery market, the rise of quick commerce is challenging their dominance. The Confederation of All India Traders (CAIT) has raised concerns about the practices of quick commerce platforms, accusing them of exploiting Foreign Direct Investment (FDI) to disrupt the retail ecosystem. CAIT Secretary General Praveen Khandelwal highlighted the alleged misuse of FDI by quick commerce players, alleging that their strategies create an unfair competitive environment that disadvantages kirana stores, forcing many small retailers out of the market.
As quick commerce platforms continue to expand and capture a significant market share, small retailers like kiranas are facing the threat of closure. Alok Agarwal, Co-founder of Kiko Live, emphasized the tangible impact on kiranas, noting that many have already shut down due to the aggressive growth of quick commerce. The situation is especially concerning in metropolitan areas, where quick commerce platforms are gaining a stronghold on the grocery market, prompting some kiranas to adopt home delivery models to stay relevant but facing challenges in competing with the resources of well-funded online platforms.