As rapid online delivery services gain traction, millions of corner shops in urban India face imminent closure, marking a stark shift in shopping habits.
The Rise of Online Deliveries: A Threat to India's Corner Shops?
The Rise of Online Deliveries: A Threat to India's Corner Shops?
The convenience of 10-minute online deliveries is reshaping consumer habits and threatening traditional neighborhood stores across India.
The article text:
In the bustling streets of Mumbai, corner store Ramji Dharod, who has been running his family shop for over 60 years, now finds himself on the brink of shutting down due to changing consumer preferences. Once a hive of activity, the shop now collects dust, with Dharod admitting he's mostly waiting for customers who rarely walk in. "They are all shopping online," he observes, reflecting the growing trend of 10-minute online deliveries facilitated by "quick commerce" apps like Zomato, BlinkIt, and Zepto that have taken urban India by storm.
Reports indicate that these quick delivery services have led to a steep decline in neighborhood stores, with an estimated 200,000 closures last year alone. For retailers like Sunil Kenia, who runs a provision store nearby, the situation is dire. After experiencing a drastic drop in sales post the Covid lockdowns, Kenia confesses that only family ownership has kept him afloat. With retail customers dwindling, most of his revenue now comes from wholesale clients.
The convenience of online deliveries has even transformed the shopping experiences of urban consumers. Many, like graphic designer Monisha Sathe, revel in the ease that these services bring, despite longing for the personal interactions once had with local merchants. According to a recent PwC survey, nearly 42% of urban consumers prefer the rapidity of online shopping for urgent needs, prompting businesses to grapple with a 52% decline in essential goods sales.
Trade associations are alarmed by the aggressive expansion of these quick commerce apps, which they argue engage in anti-competitive practices that exacerbate the plight of thousands of mom-and-pop stores. Despite the challenges, industry analysts believe there's still room for all retail models to coexist, as the diversity of India's geographies and consumer needs will allow various shopping options to thrive.
While the quick commerce phenomenon is still primarily urban-centric, analysts predict an annual growth rate of over 40% through 2030, which could further challenge traditional retail. The onus is now on corner shops to innovate and adapt their business models to compete with the click-of-a-button convenience offered by online platforms. The era of merely existing in storefronts is over; it’s time for corner shops to embrace a blend of online and offline strategies.
In the bustling streets of Mumbai, corner store Ramji Dharod, who has been running his family shop for over 60 years, now finds himself on the brink of shutting down due to changing consumer preferences. Once a hive of activity, the shop now collects dust, with Dharod admitting he's mostly waiting for customers who rarely walk in. "They are all shopping online," he observes, reflecting the growing trend of 10-minute online deliveries facilitated by "quick commerce" apps like Zomato, BlinkIt, and Zepto that have taken urban India by storm.
Reports indicate that these quick delivery services have led to a steep decline in neighborhood stores, with an estimated 200,000 closures last year alone. For retailers like Sunil Kenia, who runs a provision store nearby, the situation is dire. After experiencing a drastic drop in sales post the Covid lockdowns, Kenia confesses that only family ownership has kept him afloat. With retail customers dwindling, most of his revenue now comes from wholesale clients.
The convenience of online deliveries has even transformed the shopping experiences of urban consumers. Many, like graphic designer Monisha Sathe, revel in the ease that these services bring, despite longing for the personal interactions once had with local merchants. According to a recent PwC survey, nearly 42% of urban consumers prefer the rapidity of online shopping for urgent needs, prompting businesses to grapple with a 52% decline in essential goods sales.
Trade associations are alarmed by the aggressive expansion of these quick commerce apps, which they argue engage in anti-competitive practices that exacerbate the plight of thousands of mom-and-pop stores. Despite the challenges, industry analysts believe there's still room for all retail models to coexist, as the diversity of India's geographies and consumer needs will allow various shopping options to thrive.
While the quick commerce phenomenon is still primarily urban-centric, analysts predict an annual growth rate of over 40% through 2030, which could further challenge traditional retail. The onus is now on corner shops to innovate and adapt their business models to compete with the click-of-a-button convenience offered by online platforms. The era of merely existing in storefronts is over; it’s time for corner shops to embrace a blend of online and offline strategies.
