Now, you will not be able to order these products from online platforms? FMCG companies take BIG decision, change will be effective…

This strategic shift is expected to address growing concerns from small retailers while ensuring fair practices in the FMCG market.

Published date india.com Published: January 23, 2025 12:19 PM IST
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Quick commerce platforms are set to undergo a significant shift as small packets of products like biscuits, tea, and coffee priced at Rs 10-Rs 20 will soon no longer be available for order. Preparations for this change are underway, with FMCG companies planning to introduce exclusive product packs specifically for these platforms. This move is expected to benefit small grocery store owners. Several companies have already begun launching such products.

Quick Commerce Dominance and Upcoming Changes

Quick commerce platforms have become immensely popular, even for purchasing everyday essentials. However, consumers will soon face restrictions on ordering smaller packs of popular products like biscuits and beverages. While this change won’t happen immediately, FMCG companies are preparing to implement it.

Why Are Companies Making This Change?

FMCG companies manufacturing everyday essentials have decided to stop supplying small and affordable packs to quick commerce platforms. Instead, these packs will be available exclusively in local grocery stores. This move may inconvenience some customers but aims to address growing concerns from small retailers who have been losing business to online platforms.

The All-India Consumer Product Distributors Federation had raised these issues, pushing companies to consider strategies to ensure fair competition between quick commerce platforms and local stores.

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New Packs for Quick Commerce Platforms

To cater to online platforms, companies are launching new packs with higher price points:

Parle Products: Parle-G, Hide & Seek, and Krack Jack biscuits will now feature packs priced between Rs 50 and Rs 100 for quick commerce. Smaller packs priced up to Rs 30 will only be sold in grocery stores.

Reliance and DMart: These retail chains will focus on selling biscuit packs priced between Rs 120 and Rs 150.

ITC: The company has launched special packs of products like Engage perfumes, Savlon handwash, and Mangaldeep incense sticks for online platforms.

Adani Wilmar: Plans to introduce new cooking oil packs tailored for quick commerce platforms are in progress.

Protecting Small Retailers

The dominance of online platforms has severely impacted small grocery store owners. By restricting the sale of low-cost, small-sized packs to local shops, FMCG companies aim to restore balance and support these retailers. Online-exclusive packs will be priced higher than similar packs available in traditional stores.

Shifting Market Strategies

The focus on rural markets is another factor driving these changes. Urban demand for FMCG products has declined, while rural areas have shown growth. In response, companies are creating differentiated product categories for rural and urban markets. For example, premium products are now being launched in smaller, more affordable packs to cater to village consumers.

Industry Reactions

The All-India Consumer Product Distributors Federation has welcomed this initiative but emphasizes that FMCG companies should create two distinct product categories. The federation warns that inflating prices only to offer discounts later could harm consumers.

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