Quick commerce platforms expand luxury offerings ahead of festive season
What's the story
Leading quick commerce platforms are ramping up their luxury product offerings ahead of the festive season. The move comes as a strategic response to the growing demand for premium goods among consumers. Swiggy's Instamart has partnered with Shoppers Stop's specialty format brand Homestop and Food Square for premium groceries. Blinkit and Zepto have also launched dedicated sections for high-end products on their platforms.
Platform expansions
Blinkit's foray into luxury products
Along with iPhones, Blinkit is now offering premium lifestyle brands such as Forest Essentials, Dyson, Mokobara, and Morphy Richards. It has also added premium drinks like Sepoy & Co. and Beefeater tonics to its lineup for impulse-led buying beyond daily essentials. Meanwhile, Zepto has also expanded its range of luxury products on its platform in a bid to capitalize on this growing trend among consumers.
Market trends
Rapid growth of premium segment
The premium segment on quick commerce platforms is still small but growing rapidly. According to Deloitte, 15-20% of gross merchandise value (GMV) on these platforms now comes from non-fast-moving consumer goods categories such as personal care, electronic accessories, and lifestyle products. Anand Ramanathan, Deloitte India's Partner and Consumer Industry Leader, sees strong potential for growth in these spaces as "platforms are actively expanding into higher-value categories to capture aspirational demand."
Consumer shift
Impulse-led buying and tier 2,3 cities driving premium consumption
Impulse-led buying is a major driver of the shift toward premium products on quick commerce platforms. Consumers are increasingly using these services for non-essential items such as snacks, accessories, and premium personal care. Ramanathan noted that "Gen Z buyers, who are highly convenience-driven and digitally native, are increasingly willing to pay a premium for ultra-fast delivery." He also highlighted that tier 2 and 3 cities now account for 60% of total e-commerce transactions and are emerging as strong consumption hubs.
Economic benefits
Retailers eyeing better economics in premium categories
Platforms are looking to profit from the better economics in these categories as premium stock-keeping units (SKUs) not only have higher ticket sizes but also offer better margins. Ramanathan said, "Private-label assortments, which often include premium SKUs, offer 25-40% lower prices than branded equivalents, yet they yield higher margins for retailers." While staples usually need heavy discounting, premium SKUs depend more on bundling, loyalty offers, and targeted promotions.
Brand attraction
Increased advertising spend on quick commerce platforms
The growth of the premium segment has also led to an increase in advertising spend on quick commerce platforms. According to Deloitte India, these platforms now account for up to 50% of e-commerce revenue for some fast-moving consumer goods companies, with an average of 35% across the sector. Ramanathan said, "These investments are translating into meaningful sales conversions and RoI, particularly when paired with personalized offers, limited-time drops, and ultra-fast delivery."