Products like biscuits and snacks priced at ₹10-20 will no longer be available on quick commerce platforms such as Blinkit. Although it won’t happen right away, plans are underway. Fast-Moving Consumer Goods (FMCG) companies have decided to supply small and affordable packs only to traditional Kirana stores, restricting their availability on quick commerce platforms.
Fast-Moving Consumer Goods (FMCG) products are sold quickly and at a reasonably low price in the market. They are also known as consumer-packaged goods (CPG) or convenience goods. These goods include essential everyday items such as food and beverages, toiletries, cleaning supplies, and other low-cost household items.
Parle has introduced separate packs of its biscuit brands like Parle-G, Hide & Seek, Crack Jack, and Monaco for quick commerce platforms, priced between ₹50-100. Packs priced below ₹30 will only be available at Kirana stores. Retail chains like Reliance and D-Mart will sell packs priced between ₹120-150. Similarly, ITC has launched different packs of brands like Engage perfume, Savlon handwash, and Mangaldeep incense sticks specifically for quick commerce. Adani Wilmar is preparing to launch a separate brand of cooking oil and pulses for these platforms. Hindustan Unilever has also started offering distinct packs for Kirana stores and quick commerce.
The Reason Behind This Strategy:
Resistance from Kirana Stores and Distributors
With the rapid growth of e-commerce and quick commerce platforms in India, traditional Kirana stores have been facing losses. To counter this, Kirana stores, and consumer product distributors have started organizing themselves. Responding to this, FMCG companies are creating special packaging for quick commerce platforms, which are priced higher than the packs available in Kirana stores.
Contrary to Expectations
Parle’s Vice President Mayank Shah highlighted that the demand for smaller packs is rising on quick commerce platforms. However, these products were originally intended for Kirana stores. To avoid conflict with traditional retailers, the company has decided to introduce separate packaging for quick commerce platforms.
Focus on Rural Markets
According to research firm NielsenIQ, the recent decline in urban demand has led to reduced revenues for FMCG companies. Rural demand, however, is increasing. To cater to these markets, companies are developing different product categories with distinct pricing for urban and rural areas. Consumer companies like Godrej have also introduced smaller packs of premium products targeted at rural consumers.
Discounts on Higher-Priced Products May Mislead Consumers
The All-India Consumer Product Distributors Federation has welcomed this initiative. However, Federation President Dhairyashil Patil expressed concerns about its effectiveness. He emphasized that the strategy will only succeed if FMCG companies maintain distinct product categories. If a product priced at ₹2 per gram is rebranded as ₹2.5 per gram and then sold at a 20% discount on quick commerce platforms, it will ultimately harm consumers.
