Feb 09 2025 32 mins
In this episode of the State of Economy Podcast, businessline's Chitra Narayanan speaks with Shiv Shivakumar, Operating Partner, Advent International and K Ganesh, Founder & Partner Growthstory.in are discussing the impact of quick commerce.
Ganesh, drawing from his BigBasket experience, explains how quick commerce addresses India's urban challenges, including population density and supply chain issues. He notes the shift in consumer behavior towards convenience, particularly for groceries and niche products, driving the model's growth despite initial skepticism. Shivakumar adds insights from his FMCG background, emphasising technology's role in connecting brands and consumers.
The conversation goes on about evolving consumer habits, with both guests acknowledging their shift away from traditional kirana stores. This trend towards digital convenience and smaller pantries potentially impacts future kitchen designs, even suggesting a shift towards smaller refrigerators.
The discussion also covers the rise of D2C brands, which have capitalised on niche markets in a fragmented landscape. Shivakumar notes that larger FMCG companies often acquire these smaller brands for their capabilities and market presence, but cautions that cultural clashes can lead to acquisition failures.
Ganesh adds that D2C brands struggle with high customer acquisition costs and low brand loyalty, creating a more transactional marketplace compared to the brand loyalty of previous generations.
The podcast further examines the evolution of branding and retail. Shivakumar describes the shift from traditional branding to shorter, digitally focused campaigns. He notes the increased ease of brand building in the digital age. The discussion also highlights the growing importance of private labels, as diminishing brand loyalty allows store brands to compete on quality. Ganesh connects this trend with quick commerce and personalised offerings, which have further reshaped consumer preferences. The episode concludes with a look at the future of retail, emphasising the importance of omnichannel strategies and seamless experiences across all platforms.
Listen in to know more.
(Host: Chitra Narayanan, Producer: Prethicshaa Gurumoorthy)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.