Quick commerce is ramping up luxury lineup as battle intensifies for festive demand

Blikit, apart from iPhones, is offering luxury and lifestyle brands like Forest Essentials, Dyson, Mokobara and Morphy Richards. Premium drinks like Sepoy & Co. and Beefeater tonics too have been added to the lineup as options for impulse-led buying beyond daily essentials.

The premium segment, while still small, has been growing rapidly. According to Deloitte, 15-20 percent of gross merchandise value (GMV) on quick commerce platforms now comes from non-fast-moving consumer goods (non-FMCG) categories such as personal care, electronic accessories and lifestyle products.

Deloitte India’s Partner and Consumer Industry Leader, Anand Ramanathan sees a strong potential for growth in these spaces. "The premium and luxury segment within India’s quick-commerce basket is still in its early stages but showing promising signs of growth. While groceries and essentials continue to dominate, platforms are actively expanding into higher-value categories to capture aspirational demand, especially among urban millennials and Gen Z consumers," Anand Ramanathan said.

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Impulse-led buying is one of the main drivers of this shift. Shoppers are increasingly using quick commerce for non-essential items such as snacks, accessories and premium personal care. Ramanathan said, "Gen Z buyers, who are highly convenience-driven and digitally native, are increasingly willing to pay a premium for ultra-fast delivery. Additionally, tier 2 and 3 cities, which now account for 60 percent of total e-commerce transactions, are emerging as strong consumption hubs for premium products."

Platforms are looking to profit from the better economics in these categories. Premium stock-keeping units (SKUs) not only have higher ticket sizes but also offer better margins. "Private-label assortments - which often include premium SKUs - offer 25-40 percent lower prices than branded equivalents, yet they yield higher margins for retailers," Ramanathan added. While staples usually need heavy discounting, premium SKUs depend more on bundling, loyalty offers and targetted promotions.

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This trend has encouraged brands to increase advertising spend on quick commerce platforms. Deloitte India estimates that platforms now stand for up to 50 percent of e-commerce revenue for some fast-moving consumer goods (FMCG) companies, with an average of 35 percent across the sector. "These investments are translating into meaningful sales conversions and RoI, particularly when paired with personalised offers, limited time drops, and ultra-fast delivery," Ramanathan said.

One case in point is consumer electronics brand GOBOULT, which invests heavily during the festivals, with co-founder Varun Gupta calling Diwali demand a turning point. "Order volumes during events have historically spiked nearly 4× compared to business-as-usual, and this season the brand is preparing for around 3× of BAU levels. The clear shift is that quick commerce is no longer just an essentials channel; it has become a mainstream festive shopping destination," said Varun Gupta.

The strategy has yielded results for GOBOULT, with new consumers coming on board. "Urban Tier 1 consumers remain our largest cohort, but the real momentum is now coming from Tier 2 and even Tier 3 cities," Gupta said. "Earlier this year, only 3-4 percent of our Blinkit revenue came from these markets; by July, that had already climbed to nearly 15 percent. These buyers are younger, digital-first, and highly impulse driven."

Luxury gourmet food destination Food Square, which recently partnered with Swiggy Instamart, is offering imported produce and premium products. Food Square’s co-founder Mayank Gupta sees the partnership offering a balance between reach and product quality.

Impulse demand too has been a factor for Food Square. "Quick commerce is mostly impulse based. Consumers impulsively browse, check, and order, and within 10-15 minutes, it is delivered. That instant gratification is driving a large share of sales," Gupta said. He added that Instamart is already bringing in over 10 percent of company revenue in just its second month of listing.

All this traction has meant that the competition too is rising. What was once a market led by Blinkit, Instamart and Zepto now also has BB Now, Amazon Now, JioMart and Flipkart Minutes. With players chasing the same set of customers, quick delivery and prices are being tuned to stand out. Discounts on such platforms range from 7-9 percent, higher than the 3-5 percent usually offered by local shops, according to one consulting firm.

GOBOULT’s Varun Gupta sees the competition increasing during the festive quarter. "Festive campaigns on quick commerce don’t just deliver stronger ROI, they unlock a different kind of consumer energy, where shoppers are actively exploring, experimenting, and choosing convenience over anything else."