Retailers report 52% drop in sales of basic merchandise due to rapid commerce

New Delhi [India]March 16 (ANI): The rapid rise of trade has led to a sharp decline in sales of food, beverages and candy in urban centers, as a report by global consulting firm PWC shows that 52% of brick-and-mortar retailers reported experiencing a decline.

The report says that in addition to food, personal care (47%) and home cleaning (33%) are also experiencing a significant reduction in sales.

This suggests that the fast delivery model is more destructive to consumables that consumers often buy in-store.

Fast commerce, also known as Q-Commerce or on-demand delivery, is an e-commerce that delivers orders in 10 to 30 minutes or less.

However, despite the economic downturn in the basic categories, niche markets such as parenting, beauty and health appear to be less affected.

This may indicate that these categories often involve more consideration of purchasing decisions, customers may prefer to shop in-store, or may have less immediate demand for fast delivery services.

On the other hand, according to our study, Q-Commerce expansion to Level 2 and Level 3 regions reveals a contrasting narrative, as retailers in non-Mitero cities are still largely under pressure to enter Q-Commerce.

Q-Commerce’s growth in Level 2 and Level 3 cities, on the other hand, tells a different story. Retailers in non-metal areas are largely immune to Q-Commerce.

The report adds that challenges in these regions include high distances and inefficiency in inventory management due to diversified demand.

The report added that despite the rapid expansion of India’s rapid commercial operations, brick-and-mortar retail remains a strong channel for Level 2 and Level 3 cities.

Some notable findings emerged in the survey, but what caught PwC’s attention was that the success of brick-and-mortar retail continued to succeed in 2 and 3 cities.

India’s retail market is expected to grow to USD 1.892 billion by 2029-30 with a compound interest annual growth rate (CAGR) of 10.3%, while e-commerce is the fastest growing channel of e-commerce, reaching a compound annual growth rate of 22.5% in 2029-30 and hitting USD 2.22 billion.

The PwC report found that nearly 50% of Indian consumers prefer mixed models when purchasing, including online and offline options. (ANI)