Could quick Rakhi deliveries signal a bigger shift in festive shopping this year?

Industry experts explore the impact of quick commerce on festive shopping, with platforms like Blinkit, Swiggy Instamart, and Zepto seeing significant growth in sales for Raksha Bandhan.

On the eve of Raksha Bandhan, Blinkit CEO Albinder Dhindsa revealed that the quick commerce platform sold a peak of 693 rakhis per minute. Swiggy CEO Phani Kishan also shared that the platform saw a fivefold increase in rakhi sales on Sunday compared to the previous year, with a customer in Mumbai making the highest single purchase at Rs 11,320.

Zepto CEO Aadit Palicha highlighted the festive surge by announcing all-time highs in orders, sales, and first-time buyers, with over 6 lakh rakhis sold during the season.

Quick commerce, once focused on delivering groceries and essentials, has now become a go-to solution for all festive needs. Platforms like Blinkit, Zepto, Swiggy Instamart, and BigBasket have expanded their offerings to include ethnic kurtas, last-minute gifts, and pooja items, catering to the demands of the festive season.

According to the Times of India, non-grocery items currently account for 15-20% of quick commerce sales. The report stated that the online grocery market is valued at approximately Rs 1,100 crores ($11 billion), with half of that attributed to quick commerce.

This year, Blinkit and Swiggy Instamart also expanded their services internationally, allowing people living abroad to send rakhis to their relatives in India.

Can festive shopping shift to quick commerce?

Kushal Bhatnagar, associate partner at Redseer (a consulting firm), says that while quick commerce is currently in its early stages, categories like electronics and beauty products are gaining traction. However, fashion and consumer durables require more exploration and trust, making them less likely to shift to quick commerce.

Aakash Anand, founder of Bellavita, a D2C fragrance brand, says, "Quick commerce platforms are emerging as the next evolution of e-commerce. Blinkit and Zepto are becoming the new frontiers of convenience and speed, similar to what Amazon and Flipkart represented a decade ago."

For Raksha Bandhan, Haldiram’s curated ready-to-ship packages with its popular sweets on quick commerce platforms. Neeraj Agrawal, director, Haldiram Foods International says, “Looking ahead to Ganesh Chaturthi, the plan is to launch a special modak range on this platform.”

Similarly, Cycle Pure Agarbathi also launched pooja gift boxes on quick commerce platforms for last-minute gifting in nuclear households. Arjun Ranga, managing director of Cycle Pure Agarbathi, highlights, “These boxes offer a complete solution for festive rituals, filling homes with the fragrance of prayer.”

Bikano curated a product selection including lower-priced items popular for festive gifting and everyday snacking. Kush Aggarwal, head of marketing at Bikano, says the focus was on targeted promotions and festive packaging to enhance the appeal of the products. “Our festive bundles and limited-edition packs are designed to attract customers seeking value and novelty during the celebrations.”

Challenges and opportunities

In India, festive shopping has traditionally been dominated by physical retail, with e-commerce gaining traction in certain categories over the years. However, with the rapid rise of quick commerce platforms, there’s a possibility that this new player in the market could potentially disrupt the traditional shopping landscape. But even they aren’t sure what challenges they might face.

Praveen Govindu, partner at Deloitte India, a research firm, mentions, "Festive shopping typically revolves around large categories like consumer durables, apparel, footwear, and lifestyle accessories. While quick commerce platforms are beginning to address specific needs within these categories, their penetration remains limited.”

He adds, for instance, that luggage is one area where quick commerce can be useful—especially for last-minute travellers who discover that their suitcase is damaged. In such cases, the convenience of quick commerce is appealing, but the overall assortment on these platforms is still much narrower compared to what you’d find at an exclusive outlet or large-format store.

Bhatnagar says that FMCG and beauty categories can outpace the festive season on quick commerce.

Aggarwal believes quick commerce can supplement festive shopping by providing access to a wider range of products and exclusive online offers that may not be available in physical stores.

Anand also believes that physical shopping can't be entirely replaced, but it can be complemented by quick commerce. While quick commerce may not completely take over, it will capture a significant share of the market, driving a substantial portion of the retail pie. He adds, “Quick gifting is one of those areas where quick commerce excels. Items like perfumes and hampers are ideal for this model.”

Currently, customers are buying lower-priced products on quick commerce platforms, as consumer trust in this model is still developing, similar to the early days of e-commerce.

Govindu states that consumer durables could become significant in the quick commerce segment during the festive season. Quick commerce can be effective for smartphones and tablets with limited SKUs (stock-keeping units), unlike appliances like washing machines, which have many SKUs. “Strategic alliances between brands and quick commerce platforms can drive effective campaigns and enhance visibility," he mentions.

He further adds that the lack of return opportunities on the quick commerce model, compared to the e-commerce model, could pose a challenge in the consumer durable category.

Quick commerce also faces a significant challenge with dark stores, which limit the range of products they can offer. Dark stores, designed as fulfilment centres rather than customer-facing retail spaces, restrict the number of SKUs available for immediate delivery. This constraint means that while quick commerce excels in speed and convenience, it may offer a more limited selection compared to traditional retail or e-commerce platforms.

Avi Kumar, chief marketing officer at FNP (Ferns N Petals), a gifting platform says that by analysing purchase histories and browsing patterns, brands can tailor product selection and promotions to meet consumer needs in real-time during the festive season.

Anand notes that while the data can provide insights at a broader level, it can also offer valuable information about specific ZIP codes or demographics frequently purchasing certain brands. Although this data isn’t highly detailed, it provides enough information for brands to make informed decisions about which cohorts to target.

With Flipkart launching ‘Flipkart Minutes’ and Ola venturing into the quick commerce space, the competitive landscape is evolving. Flipkart, backed by Walmart, leverages its extensive consumer database and fulfilment centres from its e-commerce operations. Meanwhile, Ola is investing in technology to fully automate warehousing.