A recent survey by Grant Thornton Bharat reveals significant insights into consumer preferences across various retail channels. Quick commerce has emerged as the preferred choice for daily essentials, with a striking 85% of respondents opting for it for their food and grocery purchases. In contrast, e-commerce platforms dominate the clothing and accessories market, accounting for 75% of volume sales, the survey revealed.
However, when it comes to high-value purchases, physical stores remain the preferred option for over 50% of consumers, who favor in-store shopping for premium products. This trend underscores consumers' desire for tactile experiences and quality assurances, elements that brick-and-mortar retailers excel in providing, according to the report.
The survey was conducted with over 2,500 respondents. Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat, commented, “This trend presents a unique opportunity for brands to adopt a hybrid model that combines the speed of digital access for essentials with in-store experiences that ensure quality for premium products. 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”.
Despite their enduring appeal for high-value purchases, traditional stores face significant challenges, the report says. Nearly 38% respondents cite limited product range as a major drawback, while 37% point to higher prices as a key deterrent.
"By expanding product offerings, offering competitive pricing, and providing delivery options, these models enhance customer satisfaction and trust. 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 stated.
The rapid rise of Q-com 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% of gross margins on orders averaging Rs 300–500, the report highlights.
"Leveraging AI-driven data analytics can improve inventory management and optimize delivery routes, balancing both cost and speed. Partnerships with local retailers can expand hyperlocal distribution, broadening product choices while reducing dependency on central warehouses," the report stated.