The Hidden Costs of Quick Commerce: Examining the Impact on India's Traditional Retail Ecosystem

  India’s FMCG (Fast-Moving Consumer Goods) sector, a cornerstone of the nation’s economy, stands at a critical crossroads in 2025. The industry is grappling with   double-digit food inflation ,   rising commodity costs , and   subdued urban demand , even as it races to innovate with premiumization, sustainability, and digital-first strategies. This blog explores how the FMCG sector is balancing inflationary pressures with transformative innovations to secure growth in a volatile market. The Inflationary Storm: Challenges Facing FMCG in 2025 1. Soaring Input Costs Squeeze Margins The FMCG industry faced a tumultuous 2024, with prices of essential commodities like  palm oil, cocoa, coffee, and wheat  surging by 15–20% year-on-year . Companies resorted to  price hikes (3–5%)  and  shrinkflation  — reducing pack sizes while maintaining prices — to retain price-sensitive consumers. For instance, Dabur India and Emami adopted these tactics to...

In recent years, India’s food delivery landscape has experienced a seismic shift. What started as a mutually beneficial partnership between restaurants and online platforms—such as Zomato and Swiggy —has evolved into direct competition, as these tech giants open their own “dark stores” to prepare and deliver food. This practice, while profitable for the aggregators, raises alarm bells for restaurant owners. Drawing insights from reports on Financial Times and Reuters , this blog delves into the darker side of dark stores, illustrating how these giants may have crossed the line from collaboration to competition—some say, by illegitimate means. 1. How They Began: A Boon for Restaurants When Zomato and Swiggy first entered the Indian market, they revolutionized food delivery. By offering: Wider Reach : Small and medium-sized restaurants suddenly had a platform to showcase their menus to thousands of potential customers. Seamless Delivery : Delivery logistics were handled by the aggreg...