The "Blinking" of the Indian food supply chain

The quick commerce (qcom) industry has shown remarkable growth recently. A few years ago, I was skeptical about its potential in India, given that many Indians use shopping as a reason to go out and the strong presence of local kirana (mom and pop) stores, which are deeply entrenched in the shopping culture. These stores offer convenience and have established deep customer relationships, which made me doubt the appeal of qcom.

However, qcom has proven there is a significant consumer segment that values convenience above all else. This group isn’t necessarily abandoning kiranas or supermarkets but is increasingly drawn to qcom services that offer delivery within minutes with just a click.

The impressive rise of qcom players like Blinkit, Instamart, and Zepto has shifted my view from skepticism to optimism about qcom’s future. Collectively, these companies operate around 1,300 dark stores and are aggressively expanding their reach.

The growth of qcom has introduced new dynamics into the competitive landscape among various distribution channels, including kiranas, modern trade, e-commerce (ecom), and direct-to-consumer (D2C) channels. The anticipated entry of major players like Amazon, Flipkart, and possibly Jio could further intensify this competition. Consumers are likely to benefit from increased product choices, discounts, and faster delivery times.

For major e-commerce players, this means they will need to reconsider their product and merchandise strategies to determine what can be effectively offered through qcom. This involves several considerations:

- Adjusting supply chains to meet qcom demands.

- Navigating more complex revenue and margin metrics based on channel mix.

- Utilizing data analytics and AI to understand qcom opportunities and share on a category and regional basis.

- Exploring potential non-food categories that could complement the core food and grocery offerings of qcom.

This discussion is not about predicting the outcome of the qcom competition or its impact on traditional e-commerce. Instead, it focuses on how qcom might influence the food supply chain, affecting everyone from consumers to processors, SMEs, startups, and even farmers.