 "P&G investing in quick commerce as convenience drives consumption")
The rapidly evolving aspirations of the Indian consumer, amid ongoing advancements in both physical and digital infrastructure, are paving the way for rapid growth in the quick commerce (qcom) segment in the country.
In light of this trend, fast-moving consumer goods (FMCG) major Procter & Gamble (P&G) said that it is “investing in developing a deep understanding of the unique consumer behaviour in qcom”.
During the inaugural session of Ficci Massmerize 2024, Kumar Venkatasubramanian, chief executive officer of P&G India, said that the preference for convenience among shoppers is growing, especially in metro and Tier-I cities.
To address this demand, the company is “building curated brand experiences and supplementing this with a supply chain model to support this unique business structure. Enabled by strategic customer partnerships that celebrate the best of data and analytics, we are able to grow qcom at 2x the previous rate”, he said.
He further said that India is emerging as a destination with the most evolved supply chain capabilities, catering to the changing needs of shoppers by enabling product availability where they want to shop and when they want to shop.
Discussing the development of an efficient supply chain within the company, he said, “At P&G, we have been able to achieve 60 per cent fewer touchpoints than a few years ago by optimising our supply chain, leveraging seamless data, analytics, and automation. We have also transitioned to an artificial intelligence and machine learning-based ordering system for our distributors, which is helping us better predict shipments and replenishment.”
The dynamics of India’s consumption-led economy are changing, driven by increasing disposable incomes and greater aspirations fuelled by access to information.
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“Consumers are willing to pay for more evolved needs and make informed choices about superior propositions that fulfil their needs,” he said.
“The FMCG sector, as a key stimulator of our consumption-led economy, plays a pivotal role in driving double-digit growth and realising the vision of a Viksit Bharat,” he added.