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FMCG brands rework price strategies for quick commerce to shield Kiranas: ET

Companies like Hindustan Unilever, ITC, Parle Products, and Adani Wilmar are introducing products at tailored price points for quick commerce platforms.

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afaqs! news bureau
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Companies are revising channel strategies to support neighborhood stores while adapting to evolving shopping habits. Brands like Hindustan Unilever, ITC, Parle Products, and Adani Wilmar are introducing products at tailored price points for quick commerce platforms, as reported by The Economic Times. 

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Parle, for instance, has launched exclusive Rs 50-100 packs of brands like Parle-G, Hide & Seek, Krack Jack, and Monaco for quick commerce. Smaller packs priced up to Rs 30 will remain exclusive to kirana stores, while larger packs priced Rs 120-150 will cater to retail giants like Reliance and DMart, favoured for monthly shopping.

"Quick commerce has been mostly bundling small packs meant for kiranas, which was creating conflict with general trade," said Mayank Shah, vice-president at Parle as mentione din the report. "Hence, we decided to roll out these separate packs for quick commerce to avoid conflict with general trade. The response is very good," he added.

ITC has introduced exclusive quick commerce packs for brands such as Engage perfume, Savlon handwash, and Mangaldeep incense.  

Adani Wilmar, the packaged edible oil company, plans to launch a separate brand for quick commerce, covering cooking oil and staples like pulses. Hindustan Unilever, the leading player in the consumer goods market, has also begun rolling out dedicated packs for quick commerce platforms.  

Angshu Mallick, chief executive of Adani Wilmar, stated that a separate brand for quick commerce and broader e-commerce platforms is in the works. "It will be priced slightly higher than those sold in kiranas since consumers buying from quick commerce are better off and tend to do higher value purchases," he said.

Initially designed as a top-up service for last-minute grocery and small-ticket purchases, quick commerce has now become the fastest-growing sales channel, often impacting the business of kirana stores. ET reported last year that consumers are increasingly ordering large monthly packs from quick commerce platforms.  

Arun Neelakantan, executive director for customer development at HUL, stated that quick commerce and kiranas will coexist. "Consumers are not shopping for different missions in different formats. We haven't seen a drop in sales or consumption at kirana stores. It is also by stocking different portfolios and pack sizes that we ensure they cater to the shopping missions that might come up," he said.  

An ITC spokesperson explained that pack varieties vary across different product categories for general trade and quick commerce, depending on consumer trends and value-seeking behavior.

 

FMCG sector Quick Commerce kirana stores
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