More FMCG giants in India are using real-time data exchange and demand forecasting methods to avoid running out of stock on quick-commerce (Q-comm) platforms, reports Ratna Bhushan for The Economic Times.
For instance, ITC is assessing the use of electronic data interchange and has integrated it with major accounts for quicker exchange of information, says Sandeep Sule, Divisional Chief Executive, Trade Marketing and Distribution at ITC.
Similarly, Nestle is collaborating with Q-comm platforms to keep a tab on the stocks at the distribution centres to ensure product availability for consumers, the report says citing a spokesperson from the company.
What’s driving this trend? Q-comm platforms such as Zepto, Blinkit, and Swiggy Instamart among others are accountable for about 30-50% of e-commerce sales for FMCG companies, the report says.
India’s quick commerce market is expected to grow from $0.3 billion in 2021 to $5.5 billion by 2025, according to another report by Livemint.Trends we can expect.
1. Hyper-localization and personalized experiences:- Q-commerce will move beyond just speed, offering hyper-localized product assortments and personalized recommendations based on local demand and individual preferences. This will require deeper collaboration.
2. Sustainability and ethical sourcing:- Consumers are increasingly choosing products based on their impact. Q-com can use data to reduce carbon footprint, while FMCG giants can offer transparency about their practices.
3. Subscription models and loyalty programs:- As competition intensifies, Q-com platforms and FMCG giants will explore subscription models and personalized loyalty programs.
4. Integration with physical stores:- the lines between online and offline will blur further. Q-com platforms can act as extensions of physical stores, offering click-and-collect options, in-store fulfillment, and seamless returns.
5. The rise of new technologies:- emerging technologies like AI, automation, and robotics will further revolutionize Q-com. Automated picking and packing in dark stores, drone deliveries, and self-driving delivery vehicles could become common.