Indian prefer Q-commerce for daily essentials, physical stores for high-value buying

Quick commerce is the favoured mode to buy daily essentials for Indians, with 85 per cent of respondents choosing it for food and grocery purchases, a survey showed on Thursday.

For high-value purchases, however, physical stores remain the top choice, with more than 50 per cent of respondents preferring in-store shopping for high-value premium products, according to Grant Thornton Bharat's 'Beyond the Basket: Understanding Consumer Preferences within Omni-Channel Setups' survey report.

Meanwhile, clothing and accessories lead in e-commerce platforms, capturing 75 per cent of volume sales.

India's retail ecosystem is undergoing a pivotal shift as consumers seek a balance between the convenience of digital platforms and the quality assurance offered by traditional stores.

“The report highlights that while quick-commerce has gained popularity for everyday essentials with over 30 per cent of consumers opting for it, high-value purchases still predominantly occur offline, since consumers still prefer brick-and-mortar stores for high-value items,” said Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat.

Despite their enduring appeal for high-value purchases, traditional stores face significant challenges.

Nearly 38 per cent respondents cite limited product range as a major drawback, while 37 per cent point to higher prices as a key deterrent.

In response, retailers are increasingly adopting hybrid models, merging the reliability of physical stores with the convenience of digital platforms.

Further, regulatory advancements, such as the Data Protection Act 2023, are likely to ensure a secure and transparent environment for digital transactions, making the hybrid approach a sustainable pathway for growth in India's evolving retail landscape, the report mentioned.

The rapid rise of quick commerce presents opportunities but also brings operational challenges that impact scalability and profitability.

High operational expenses related to warehousing and expedited delivery continue to strain the business model, with delivery costs accounting for up to 70 per cent of gross margins on orders averaging Rs 300–Rs 500, the report said.

“As consumer preferences evolve, businesses that can seamlessly integrate online and offline experiences will be best positioned to succeed in this rapidly transforming retail landscape,” said Malpani.