admin
December 3, 2025
Pooja Yadav, Exchange4Media
3 December 2025
Over the last few months, India’s e‑commerce and quick‑commerce ecosystem has undergone a wave of structural regulatory and tax reforms. Be it the Goods and Services Tax Council (GST Council) formally bringing “local delivery services” under the tax net with an 18% levy, or the newly implemented labour and social-security reforms expanding obligations for gig workers on aggregator platforms like Swiggy and Zomato, the cost and compliance landscape for delivery and fulfilment is shifting significantly.
The latest GST clarification, delivery fees, packaging charges, and logistics surcharges are now creating a ripple effect across pricing, platform margins, and seller compliance requirements.
The past few months have already shown concrete signals that platforms are revising their incentives, delivery promises, and fee structures. Following the GST clarification, major food‑delivery players have raised their platform fees, for instance, Zomato reportedly increased its per‑order fee from ₹10 to ₹12 (pre‑GST), while Swiggy also raised fees in select markets. Some quick‑commerce arms are also reworking free‑delivery thresholds or fee waiver conditions. Swiggy Instamart also recently updated its free‑delivery threshold to orders above ₹299, with handling and surge fees applying below that level, per reports.
Meanwhile, some platforms seem to be signalling a de‑emphasis on “ultra‑fast for every order” as universally viable; free or fast delivery now appears increasingly tied to higher order values or subscription/membership perks.
It looks like these pressures are forcing platforms to reconsider long-standing quick-commerce levers such as ultra-fast delivery, first-order free offers, zero delivery fees, and flash discounts — which have historically driven customer acquisition and retention.
While Zomato did not comment directly, it referred to the Code on Social Security, 2020 (CoSS), noting that the platform is prepared for gig-worker obligations and does not expect the rules to negatively impact long-term business sustainability.
According to Kapil Sharma of Amazon Ads, “The e‑commerce landscape will continue to evolve, but some fundamentals remain constant such as delivering value to consumers and providing advertisers with meaningful ways to engage. Our full-funnel ad solutions allow brands to focus on objectives such as new product launches, brand building, or promoting larger pack sizes, ensuring campaigns remain relevant and effective even as the ecosystem adapts to changing costs and regulations.”
e4m reached out to Swiggy, Meesho, Zepto and BigBasket for comments, but did not receive responses until the time of publishing.
Several experts told e4m that the economic model of quick commerce, built on heavily subsidised delivery and small-ticket frequent orders, is under pressure. Platforms will need to find sustainable levers to retain customers without eroding margins. The industry has started to see a strategic recalibration where speed is increasingly becoming a hygiene factor rather than a differentiator, free delivery is becoming conditional, and platforms are nudging consumers toward larger baskets, subscription models, curated bundles, and scheduled deliveries. Brands, in turn, are also shifting focus from mass discounting to premiumisation, value-led messaging, and precise cohort-based targeting.
Will Free Delivery Become Rare?
With the new social‑security obligations for gig workers under India’s labour reforms, and the added cost burden of delivery services now subject to GST, the economic logic underlying “free delivery” as a marketing lever is coming under stress. Chetan Asher, Founder and CEO of Tonic Worldwide, echoes this view, noting that quick-commerce platforms previously operated on thin contribution margins and heavily subsidised small-ticket, frequent orders. With rising delivery costs and mandatory social-security contributions, universal free delivery is becoming increasingly unsustainable.
Industry analysts point out that the new social-security mandates and GST on delivery fees have lifted per-order costs noticeably. Most quick-commerce platforms already operate at low single-digit contribution levels, making blanket “free delivery” hard to justify. It may continue, but only as a conditional incentive tied to higher basket values, subscription memberships, or flexible delivery slots, rather than as a universal subsidy.
Shradha Agarwal, Co- Founder & Global CEO, Grapes Worldwide, added from an advertising standpoint, “It’s already happened, brands like Zomato, Swiggy, Amazon and Flipkart, who know we are going to buy from them, have shifted from ‘buy now’ tactics to ‘stay with me’ strategies. Those days are gone when platforms were giving blanket discounts, now brands are the ones tightening their offers.” Citing an example she mentioned how offline pricing is ₹235, but online it is sold at ₹185, with online adding to top-line rather than bottom-line.
On promo hooks like ‘₹0 delivery’, ‘first-order free’ or ’10-minute delivery’, Agarwal said, “As labour codes, compliance costs, and social-security contributions kick in, platforms will have less room to burn cash on promos that don’t create sustainable value. Consumers care more about convenience than freebies.”
On ad spend shifts, she noted, “Offer-driven campaigns will weaken, while value-driven storytelling will rise. ATL and influencer campaigns will strengthen, and performance marketing will become more strategic. Retail media will become non-negotiable.”
From a brand perspective, Asher pointed out that quick-commerce spends are increasingly evaluated against contribution margin rather than sheer GMV growth. Discounts and zero-fee offers are losing bite as customer acquisition costs rise. First-party data, replenishment journeys, and sharper cohort-based offers are gaining importance, ensuring that incentives remain ROI-focussed rather than mass-oriented. Similarly, speed claims such as “0 delivery” or “10-minute delivery” are becoming less differentiating in top cities, where most players already deliver within 15–20 minutes. Consumers now respond better to reliable ETAs, fair fee structures, and transparent pricing than aggressive speed promises.
Adding her viewpoint, Pooja Dhamdhere, Commerce Lead at Starcom India, said, “Incentives like free delivery or first-order offers are likely to evolve rather than disappear, and platforms will explore strategies such as tiered benefits, curated bundles, or differentiated pricing for specific cohorts.”
According to serial entrepreneur Alok Chawla and Founder at Kiko Live, added that while platforms may continue absorbing delivery costs in the short term, the long-term economics will require charging for ultra-fast or low-value orders. “Once platforms pass the actual delivery costs to consumers, we expect order frequency and small-cart behaviour to change, with many users shifting to larger baskets or neighbourhood retailers offering free delivery,” he noted.
Alternative Consumer-Incentive Models
Devangshu Dutta, founder and chief executive of Third Eyesight, who is an expert in the consumer and modern retail sector, stated, “I think platforms will pass a significant portion of the new 18% GST burden on delivery to end-consumers, either through higher delivery charges or repackaged platform fees. Some of this cost may also be clawed back from restaurant partners and quick-commerce brands via revised commissions, slotting fees or mandatory participation in marketing programmes, especially in categories where the platform has stronger bargaining power. Overall, I expect higher minimum-order thresholds and a tighter margin environment for restaurants and small D2C brands that rely heavily on third-party platforms.”
Analysts highlight strategies such as minimum-order thresholds, where free or lower-fee delivery applies only above a certain cart value, nudging consumers to order larger baskets rather than frequent small-ticket items. Subscription and membership-based models are also gaining prominence, offering benefits like waived or discounted delivery, priority fulfilment, and access to exclusive promotions in exchange for a fixed fee.
Scheduled or batch delivery windows are being used to optimise logistics, reduce cost pressure on ultra-fast last-mile fulfilment, and improve operational efficiency. Meanwhile, curated bundles and value packs, including weekly or monthly combos, allow consumers to plan purchases while enhancing per-unit economics for platforms. These levers also enable brands to maintain margin integrity without over-reliance on short-term discounting.
From a marketing perspective, this shift is prompting agencies and creative-first firms to move toward value-led messaging, premiumisation, and cohort-based targeting. Dhamdhere explained, “Platforms are optimising assortments by surfacing premium SKUs, nudging higher average order values, and using search optimisation to strengthen profitability. Brands are now focusing on aspirational consumers with curated bundles, subscriptions, and value-led propositions, rather than mass discounting. Performance campaigns will continue, but clarity of value and sustainable margin-led offers are becoming key for acquisition and retention.”
2026: Will regulatory pressure force a recalibration?
As 2026 approaches, the combined impact of GST on delivery services and mandatory social-security contributions for gig workers is forcing a fundamental rethink of quick-commerce economics. With blanket discounts, zero delivery fees and ultra-fast delivery no longer viable as mass levers, platforms are shifting toward basket-building, subscriptions, curated bundles and conditional incentives. The growth thesis is evolving from “habit formation at any cost” to protecting contribution margins through reliable ETAs, transparent pricing and premium assortments rather than aggressive subsidies.
Brands are recalibrating alongside this shift. Premiumisation, value-led propositions and sharper cohort-based targeting are taking precedence over broad discounting, and campaigns are increasingly evaluated on ROI, repeat behaviour and lifetime value rather than raw GMV. Tiered memberships, scheduled deliveries and subscription-led conveniences are emerging as key retention tools, while short-form video, influencer ecosystems and retail media help articulate value in a tighter cost environment.
Chawla said platforms will have to move beyond “₹0 delivery”, “first order free” and “10-minute delivery” as core propositions because the delivery cost burn far exceeds margins on small-ticket orders. Many consumers currently place multiple micro-orders a day simply because delivery is free, but once fees come into play, behaviour will likely shift toward clubbing orders or reverting to neighbourhood retailers, who themselves are rapidly digitising through partners like Kiko Live.
In the next phase, he adds, free instant delivery will only be sustainable for larger baskets, whereas scheduled delivery may become the default for free delivery, with paid instant delivery as an optional upgrade. Subscriptions may drive loyalty, but only up to a point, since the heaviest users would consume more deliveries than the subscription fee can realistically subsidise, making it difficult for platforms to make the model profitable.
This points to a clear playbook for 2026. “Free delivery” and mass discounting are expected to fade, giving way to conditional, tier-based formats that reward higher basket values, subscriptions or specific cohorts. Brand platform partnerships will also move toward profitability rather than promotional burn, with campaigns designed to protect margins instead of fuelling discount-led spikes.
Taken together, the signs suggest that 2026 will not mark the end of convenience, but the end of convenience that is subsidised blindly. The real test now is who absorbs this new cost of convenience, platforms, brands, or consumers. And as that battle plays out, another tension is already emerging: whether small and regional advertisers can survive the rising cost of visibility in India’s digital economy.
(published in Exchange4Media)
admin
November 26, 2025
Aakriti Bansal, Medianama
November 26, 2025
MediaNama’s Take: The Central Consumer Protection Authority’s (CCPA) decision to publish 18 self-declarations confirms only a partial picture of its dark pattern(s) identifying exercise. The authority has stated that 26 platforms have filed their declarations, but it has made only 18 of them public. This gap means the public still cannot see what eight major platforms submitted or whether those filings contain any meaningful detail. Moreover, even among the published declarations, several are one-paragraph statements that offer almost no insight into the scope or accuracy of the companies’ internal audits.
LocalCircles’ new survey adds further complications, reporting that 21 of the 26 platforms that submitted declarations still display at least one dark pattern. This finding suggests that the CCPA’s reliance on voluntary self-assessment may not be enough to shift platform behaviour at scale. It also raises questions about what the unpublished declarations contain and whether the missing submissions are similarly sparse or incomplete.
Notably, the CCPA has not clarified how it plans to verify the accuracy of any of the declarations, whether published or unpublished. If filings remain unverified for months, compliance risks turning into a box-ticking exercise rather than a meaningful regulatory process. Therefore, the next phase matters far more than the publication of select declarations, because the current approach raises more questions than it answers.
What’s the News
The CCPA has made 18 dark pattern self-declarations public, despite stating that 26 platforms have filed their compliance letters. The publication follows an RTI filed by MediaNama that revealed which companies had submitted their declarations, and pointed out that none of the filings had been available to the public at the time.
These declarations stem from the Ministry’s June 5 advisory, which required e-commerce and quick commerce companies to conduct internal audits under the 2023 Guidelines for Prevention and Regulation of Dark Patterns and submit compliance letters within 90 days.
For context, Moneycontrol reported that Amazon has still not filed its declaration and has asked for additional time. A senior government official told the publication that the government “has done what it had to” and does not plan further discussions.
The official also said that any punitive action would depend on consumer complaints routed through channels such as the national consumer helpline. This indicates that the enforcement approach continues to be reactive rather than compliance-driven.
What Did The CCPA Ask Platforms To Do?
The June 5 advisory set out a simple compliance framework for digital platforms. It asked every e-commerce and quick commerce company to complete a self-audit of its website and mobile app within 90 days and check their interfaces for the 13 dark patterns listed in the 2023 guidelines. Platforms were required to file a self-declaration confirming compliance once this internal review was complete.
However, the advisory did not specify how the audit should be conducted. Companies were free to choose any methodology, and the CCPA did not prescribe a standard format, a uniform checklist, or a minimum evidence requirement. Also, the advisory did not require independent audits or third-party validation.
Furthermore, there was no explanation of how the CCPA planned to verify whether the declarations were accurate or complete. In effect, the responsibility for defining the scope, depth, and rigour of the audit rested entirely with each platform.
What the CCPA Has Done With the Declarations
As mentioned before, the CCPA has now published 18 self-declarations on its website. The release confirms that companies submitted their compliance letters, but it does not indicate whether the authority evaluated the accuracy or depth of the filings.
Several platforms submitted very short statements that simply assert compliance without describing any checks or findings. BigBasket, Zomato, Blinkit and Swiggy were among the companies that filed especially minimal disclosures. The CCPA has not explained why these filings were accepted or whether any follow-up questions were asked. Therefore, asking for and disclosing self-declarations shows some administrative progress, but it does not reflect any regulatory scrutiny.
This lack of verification aligns with concerns raised by Devangshu Dutta, Founder of business consulting firm Third Eyesight. He told MediaNama that self-declarations “do not change things much” when regulators do not audit submissions or impose consequences.
Further, Dutta remarked that most companies comply at the minimum level required if their claims are not examined and are not made public in full. According to him, revenue-driving design choices such as forced add-ons, confusing checkout flows or misleading scarcity claims will not be voluntarily removed sans oversight.
What Independent Evidence Shows
LocalCircles’ latest audit presents a sharply different picture from the companies’ filings. The organisation found that 21 of the 26 platforms that submitted “dark pattern free” declarations still use one or more manipulative design practices. The assessment relied on feedback from more than 250,000 consumers across 392 districts along with AI-assisted testing.
The most common violations include forced action, subscription traps, bait and switch, basket sneaking, interface interference and disguised advertisements. In practice, these dark patterns respectively mean that users are pushed into steps they did not choose, face hidden or hard-to-cancel subscriptions, see offers change during checkout, encounter fees added at the last moment, get nudged toward platform-favoured choices, and come across ads that appear as regular listings.
LocalCircles also identified drip pricing (gradually adding mandatory fees during the checkout process) on 11 of the 26 companies, including Flipkart, Myntra, Cleartrip, MakeMyTrip, BigBasket, Zomato and Blinkit, among others. The organisation said that many platforms appear to misunderstand what qualifies as drip pricing, which has led to incomplete corrections.
Trust Can Erode Due To Gap Between Declarations And User Experience
Sachin Taparia, Founder of LocalCircles, said that the problem begins with the absence of any verification. “Our understanding is that CCPA is wanting that companies submit a self-declaration at the earliest. However, there is no cross checking of claims that is being done by the CCPA, and as a result the companies are not being as thorough with their dark-pattern detection and resolution,” he said.
Taparia added that discrepancies between declarations and user experience could harm trust. “LocalCircles has found dark patterns on 21 of the 26 platforms submitting self-declarations. If this exercise is not done with high accuracy, both platforms doing so and CCPA could see consumer trust being impacted,” he said.
Importantly, Dutta echoed this concern, saying that the absence of penalties or reputation-related consequences allows companies to self-declare compliance while keeping revenue-generating patterns intact. He described the current process as “more an administrative formality [rather] than a behaviour-changing regulatory tool”.
Why This Matters
The gap between self-declarations and independent audits in the true sense of the word brings the real enforcement question into focus. What should the next phase of regulation look like?
In this context, Dutta said that regulators need to move beyond self-certifications and mandate detailed user experience (UX) audit reports that map every user journey, including pop-ups, onboarding, search, checkout, cancellations and returns.
He explained that regulators should reinforce this by demanding substantive evidence instead of brief compliance letters. This evidence can include screenshots and screen recordings of key flows, version histories that show how an interface changed over time, and product design documents or A/B testing results that reveal why specific nudges were introduced. To explain, A/B testing is essentially a method for comparing two versions of something to see which one performs better.
Furthermore, Dutta noted that platforms already collect extensive data on user complaints and drop-off points, which can help identify harmful or confusing design choices. He also said that independent third-party attestations, similar to security or accessibility audits, can provide a credible external check and increase the cost of non-compliance.
Multiple Annual Audits For Apps that Change Interface Frequently
Notably, Dutta stressed that most dark pattern categories appear across e-commerce, quick commerce and Direct-to-Consumer (D2C) websites, which means regulators can create a baseline audit standard that works across sectors instead of relying on platform-specific interpretations. He also suggested that audits should occur at least once a year, and companies that frequently modify their interfaces may need to report two or three times annually.
The larger concern now is whether the CCPA plans to move toward such a structured framework. Without independent verification and clear audit expectations, companies can continue declaring compliance even when manipulative designs remain embedded in their interfaces.
(Published in Medianama)
admin
November 4, 2025
Yash Bhatia, IMPACT
4 November 2025
It started with groceries. Quick commerce started delivering milk, bread, and eggs in 10–15 minutes, which seemed revolutionary enough in 2022. Then came the iPhone 14 launch, and suddenly, quick commerce wasn’t just about convenience; it was about spectacle. Overnight, India’s app-based delivery ecosystem became the stage for a new ritual: flagship products arriving at your doorstep faster than you can say ‘checkout.’
And now? Phones aren’t the limit. You can even order motorcycles online. Yes, motorcycles. Royal Enfield has partnered with Flipkart to list its entire 350cc portfolio, which will be delivered to five cities: Bengaluru, Gurugram, Kolkata, Lucknow, and Mumbai.
The lines between e-commerce and quick commerce are becoming increasingly blurred. Flipkart’s Flipkart Minutes and Amazon’s instant delivery options are proof that speed is no longer a differentiator; it’s table stakes. And as platforms race to expand, high-ticket items are joining the frenzy, from electronics and furniture to watches, fitness equipment, and premium kitchen appliances. For platforms, these products are goldmines of margin; the challenge lies in logistics and consumer trust.
According to a report by CareEdge Advisory, India had over 270 million online shoppers in 2024, making it the second-largest e-retail user base globally, while the e-commerce market grew 23.8% in 2024 over the year-ago period, it said. The report also added that Indians ordered Rs 64,000 crore of goods from quick-commerce platforms.
From the consumer standpoint, one of the challenges for consumers to buy high-ticket items from the quick commerce platforms is to get consumer trust, which used to be the case when e-commerce started its operations. Can quick commerce move to high-ticket items? Is quick commerce looking at these items as a branding exercise, or are they looking at them as a serious revenue stream channel?
Chirag Taneja, Founder & CEO, GoKwik – an e-commerce enablement platform, says what began as a branding exercise for D2C brands has now evolved into a credible revenue stream. “In the early days, high-ticket categories on D2C platforms saw limited traction,” he explains. “Trust was still being built, customers were unsure if their orders would even reach them. There were many friction points.”
But that’s no longer the case. According to GoKwik’s network data, high-ticket purchases (above ₹2,500) are no longer outliers, they’re becoming a consistent driver of topline revenue.
Interestingly, most of these premium purchases are powered by credit instruments from no-cost EMIs to instant credit options at checkout. “This reflects a clear shift in mindset,” says Taneja. “Consumers no longer view high-value spending as a financial strain. They see it as a set of manageable, bite-sized payments that help them aspire higher, quicker. It’s not just a financial enabler, it’s a psychological unlock that makes premium consumption feel accessible and routine,” he adds.
“With strong trust in delivery reliability, smooth returns, and credible brand backing, the ecosystem has bridged the gap that once kept premium shopping offline,” says Taneja.
Devangshu Dutta, Founder of a specialist consulting firm, Third Eyesight, thinks differently and points out that high-value items still make up a small slice of quick commerce sales. “The model thrives on simplicity, a limited product range on the platform’s end, and quick, low-friction decision-making on the consumer’s,” he explains.
That said, Dutta believes quick commerce can still play a strategic role for premium brands. “For high-value products, q-comm can be an excellent lever for driving velocity, testing market response, or amplifying brand visibility. But it should be viewed as one piece of the channel mix, not the primary sales driver.”
From the platform’s perspective, however, listing high-ticket products brings its own upside. “They create excitement, boost average transaction values, and improve realised margins,” Dutta notes. “Consumers are often drawn in by novelty, exclusivity, or status appeal, especially during big launches or limited-time promotions.”
Still, he adds a note of realism: “Premium and high-ticket purchases largely remain planned decisions. Most consumers continue to prefer established offline and e-commerce channels for such buys where trust in authenticity, return policies, and after-sales services still carry greater weight than instant gratification.”
Seshu Kumar Tirumala, Chief Buying and Merchandising Officer, BigBasket, says the company doesn’t look at electronics as a high-ticket item category but rather focuses on building a complete category experience for customers. “For example, if we list an Enfield bike, we’d also want to offer spare parts, servicing options, and extended warranties, because that’s how the category functions,” he explains.
Tirumala adds that BigBasket adopted the same approach when it ventured into mobiles and mobile accessories. “When we launched this category last year, it was a trial. Today, it’s a sizable part of our business,” he says. Currently, electronics and mobile accessories contribute 5–10% of BigBasket’s monthly sales, having grown 250–300% year-on-year since the first iPhone launch on the platform.
While the launch day drives the highest demand for flagship devices like the iPhone, Tirumala notes that the following one to two months see strong accessory sales, from AirPods and headphones to chargers and power banks. “On average, mobiles and accessories account for 7–8% of our total sales, peaking at 10% during the festive season. Overall, this category has grown from zero to 7–8% of our total business in just a year, and we expect it to reach around 25% next year,” he adds.
Currently, the platform offers select models from smartphone brands, including OnePlus, Realme, Redmi, Vivo, and Oppo.
The Bengaluru-based platform is now piloting the delivery of large home appliances across across select city areas in partnership with Croma. If successful, BigBasket plans to expand this model to other cities, further broadening its quick commerce offering beyond everyday essentials.
Taneja points out that the traditional e-commerce model, once driven by discounts and affordability, is now evolving toward experience and access. Over the next few years, two major shifts will shape this transformation: credit-first commerce, where EMIs become the default mode for premium purchases, and aspirational commerce, where consumers view e-commerce as the easiest path to lifestyle upgrades. Consequently, platforms will need to reposition themselves from being “where you save more” to “where you unlock more”, prioritising personalisation, trust, and a seamless shopping experience.
As quick commerce matures, it is no longer just about instant gratification; it’s becoming a bridge between aspiration and accessibility.
Platforms are proving that speed, trust, and seamless experience can coexist with high-value purchases.
(Published in IMPACT)
admin
October 24, 2025
Entrepreneur India
Oct 23, 2025
Indian consumers are increasingly opting for private labels and in-house brands over established ones, and retailers are taking note. According to EY’s ‘Future Consumer Index 2025’, more than half of India’s consumers are now choosing in-house brands over legacy labels.
The report highlights that 52 per cent of Indian consumers have switched to private labels for better value, while 70 per cent believe these in-house brands offer comparable or superior quality. Backed by this shift, retailers from BigBasket to DMart, and quick-commerce players like Zepto and Blinkit, are doubling down on their private label strategies, viewing them as a path to higher margins, stronger brand loyalty, and greater pricing control.
“Indian consumers’ growing preference for private labels reflects both short-term price pressures and a longer-term structural evolution in retail,” said Devangshu Dutta, CEO of Third Eyesight, speaking to Entrepreneur India.
Trending globally
The surge isn’t unique to India. A recent report by the Institute of Grocery Distribution (IGD) notes that globally, private labels now account for over 45 per cent of grocery volume and are expanding faster than legacy brands.
In India, this shift is becoming increasingly visible in-store. The EY report found that 74 per cent of consumers have noticed more private label options where they shop, and 70 per cent say these products are now displayed more prominently, often placed at eye level, signalling a strategic retail push.
Commenting on this trend, Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon, said, “Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent. Retailers are confidently launching private labels and allocating prime shelf space to them, while technology is enhancing the shopping experience by providing consumers with limitless options and the ability to compare products.”
From price-fighters to power brands
According to Dutta, private labels are no longer just “copycat” alternatives meant to undercut national brands.
“For retailers, not just in India but globally, lookalike private labels used to be tools at the opening price point to hook the customer, who saw them as credible, affordable alternatives to national brands,” he explained, adding, “However, as retailers have grown, they have gained both scale and expertise to widen and deepen their supply chains.”
Over time, he said, investments in formulation, packaging, and quality consistency have increased consumer trust.
“Private labels now compete on functional benefits rather than only on price, particularly in food staples and apparel, but also in brown goods and white goods, and increasingly in personal care and other FMCG categories,” he added. [Must read: “Private Label Maturity Model”]
Retailers scale up private labels
As demand for in-house brands grows, retailers are scaling up their strategies across sectors.
BigBasket, one of India’s largest online grocery platforms, reported that 35–40 per cent of its FY24 sales came from private labels like Fresho, BB Royal, and Tasties. The company aims to push this share closer to 45 per cent through expansion in frozen foods and ready-to-eat categories.
DMart’s private label arm, Align Retail, has reportedly more than doubled its sales in two years, touching INR 3,322 crore in FY25. The retailer’s in-house brands in staples, apparel, and home essentials have helped boost margins in a highly competitive retail landscape.
Zepto, the quick-commerce player, is taking private labels into the 10-minute delivery domain. Its brand Relish, focused on meats and eggs, has achieved INR 40 crore in monthly sales.
Meanwhile, Reliance Retail has also expanded its portfolio of private labels, including Good Life, Enzo, and Puric, across groceries, personal care, and household products, strengthening its broader FMCG play. In 2024, Reliance Retail’s Tira Beauty also announced the launch of its latest private label brand, Nails Our Way, signifying a major expansion in its beauty offerings.
Capturing a lion’s share in retail
Dutta noted that in India, private labels will remain a core pillar of modern retail strategy rather than a cyclical response to cost pressures.
“Consumers increasingly view retailers as brand owners rather than intermediaries. As private labels mature in branding and innovation, their growth aligns more and more with brand equity development rather than just opportunistic cost-saving,” he said.
From a retailer’s perspective, private labels deliver higher gross margins and greater strategic control, Dutta said. [Must read: “Private Label Maturity Model”]
Another report by the Private Label Manufacturers Association (PLMA), using Circana data, found that in 2024, private-label sales in food and non-edible categories grew faster than bigger brands globally. While figures vary by region and quarter, the pattern remains consistent: private labels are outpacing traditional FMCG growth.
Collectively, these shifts show that private labels are becoming a major revenue driver for retailers in India, and are fast evolving from value alternatives into brands with genuine consumer pull.
(Published in Entrepreneur India)
admin
September 5, 2025
Shalinee Mishra, Exchange4Media
5 September 2025
Retailers in India are waking up to a hard truth: customer acquisition can no longer ride on advertising alone. Digital ad spends grew by 14-17% in 2024, touching nearly ₹50,000 crore (as per Pitch Madison report) and accounting for 46% of India’s total ad market. But with customer acquisition costs (CAC) rising 30-35% year-on-year and consumer attention fragmented across platforms, the ad-first growth engine is showing strain. What is emerging instead is an ecosystem where content in the form of video, celebrity-led storytelling, or creator-driven engagement is becoming the direct funnel to commerce.
Flipkart for instance is building influencer production hubs and embedding shoppable videos, Myntra has rolled out its video-first Glamstream, and Amazon has long blurred the line between streaming and shopping through Prime Video and Fire TV. From short videos to celebrity gossip, from beauty blogs to shoppable livestreams, e-commerce giants are no longer just marketplaces; they are evolving into media houses and the trend is only growing.
According to Mindshare’s latest Content Trend Report, India’s branded content marketing industry is now worth ₹10,000 crore, growing at nearly 20% annually, with video formats making up almost half of all spends.
India already has over 270 million online shoppers, a number that Bain projects will rise to 350 million by 2027, making it the world’s second largest e-retail user base. That scale is creating fertile ground for shoppable video and live commerce to take off.
Globally, branded content spend is projected to cross $500 bn by 2027. As per PwC estimates, India’s share is still <2% but among the fastest growing.
Video commerce today largely follows two prominent models. The first is driven by social platforms such as YouTube, Instagram, and Facebook, where shoppable posts allow users to move directly from content to purchase. The second is led by e-commerce platforms like Amazon, Myntra, Nykaa, and Flipkart and others which have added video sections to create immersive shopping experiences within their apps.
Within this, live commerce has emerged as a high-potential format. Meesho and Flipkart, for example, are leading the charge with 2-3% conversion rates, generating an estimated $150-200 million in GMV during festive 2024. Events like Flipkart’s Big Billion Days show how timed livestreams can capture active, purchase-ready audiences.
Meanwhile, influencer-led short videos are driving conversion rates as high as 63%, with beauty and personal care (BPC) and food & beverages (F&B) among the top categories benefiting from this shift. Redseer projects India’s live commerce market could touch $4-5 bn GMV by 2027, up from less than $300 mn today. This surge in shoppable video and live commerce is only the surface of a deeper structural change, one where content itself is becoming the moat that protects brands from rising ad costs, fragmented attention, and fickle consumer loyalty.
Beyond ads: Why content has become retail’s strongest defence
Chirag Taneja, co-founder of e-commerce enablement company GoKwik, framed the trend as a fundamental shift in ownership.
“It’s not just about enhancing top-of-funnel reach, it’s about owning demand, connection, and the touchpoint with end shoppers. For years, brands relied on ads to bring traffic. But acquisition costs have been rising, attention is fragmented, and privacy shifts have made targeting difficult. That’s why content is now the moat. When companies acquire content firms, they’re not just buying eyeballs, they’re securing access to communities that trust and engage with that content.”
According to him, content is collapsing the traditional funnel. “One short video or livestream can take a consumer from awareness to purchase in under a minute. That’s why we see D2C brands treating content as a compounding asset, not just an expense,” he added.
Devangshu Dutta, founder and CEO of management consulting firm Third Eyesight, echoed the sentiment.
“Large companies are buying or partnering with content-driven platforms to capture attention beyond transactional touch points. Short video, regional language content, and influencer-driven discovery are embedding commerce within entertainment. If you want to sell more than a commodity, storytelling is critical. Content builds credibility, differentiation, and trust in a cluttered and price-sensitive market.”
Flipkart bets big on media and creators
The shift is already reshaping strategy at India’s biggest retailers, and Flipkart has moved fastest. Its move to acquire a majority stake in Pinkvilla, a platform built on entertainment and celebrity news signals a clear push to deepen ties with Gen Z and millennials, a cohort that consumes content first and shops later.
“Our acquisition of a majority stake in Pinkvilla is a critical step in our mission to deepen our engagement with Gen Z. Pinkvilla’s robust content IPs and strong connection with its loyal audience base are assets that will accelerate our efforts to leverage content as a key driver of growth,” said Ravi Iyer, Senior Vice President, Corporate at Flipkart.
Flipkart in the last year has exited investments in companies like Aditya Birla Fashion & Retail, where it sold its 7.5% stake in the owner of Pantaloons, Van Heusen, Louis Philippe and Forever 21, as well as BlackBuck, the trucking marketplace that powers India’s mid-mile logistics.
At the same time, the company has doubled down on content and creators. Its Pinkvilla acquisition gives it access to a platform reaching over 60 million monthly users, while in-house features like Flipkart Feed already clock 5–6 million daily video views, highlighting how commerce and content are converging at scale.
Alongside this, Flipkart has launched Creator Cities in Mumbai, Bengaluru and Gurgaon, production hubs designed for influencers to shoot and scale shoppable content.
It has also introduced Flipkart Feed, a TikTok-style vertical video feature embedded in its app, offering bite-sized, influencer-led, fully shoppable videos. Myntra, its fashion arm, has developed Glamstream, with more than 500 hours of video-first shopping content across music, beauty, travel and weddings, featuring stars like Badshah, Tabu, Zeenat Aman and Vijay Deverakonda.
Flipkart has also partnered with YouTube Shopping, allowing creators with over 10,000 subscribers to tag Flipkart products in videos, Shorts and livestreams, enabling viewers to buy directly while creators earn commissions.
Amazon’s head start in content-commerce convergence Flipkart is not alone. Its biggest rival Amazon has long understood this convergence. Through Prime Video and its original programming slate, Amazon has built an entertainment ecosystem that doubles as a commerce funnel. The shows and films on Prime do not merely entertain; they drive shopping behaviour, influence trends, and lock audiences into Amazon’s larger universe of services. With Fire TV and Alexa integrations, the company has blurred the line between watching and buying, a model others are now racing to replicate.
D2C brands treat content as growth engine
Closer home, the Good Glamm Group, now closed, had pioneered a content-led commerce ecosystem in beauty and personal care. Through acquisitions like ScoopWhoop and MissMalini Entertainment, the group stitched together a portfolio where content platforms brought in audiences, who were then nudged towards its direct-to-consumer brands.
This “editorial-to-checkout” model demonstrated how cultural capital could be translated into purchase pathways. Alibaba has taken the strategy global. With stakes in Youku, a leading video-streaming platform, and Alibaba Pictures, the e-commerce titan integrates entertainment with retail operations. Taobao Live has shown how livestream shopping can dominate consumer behavior, particularly inAsia, creating billion-dollar shopping events entirely dependent on
entertainment-driven discovery.
Shopify, meanwhile, has invested in tools that empower merchants to become content creators themselves. Its partnerships with agencies like Sanity and investments in platforms such as Billo reflect a clear intent to enable retailers to embed storytelling, gamification, and user-generated content into their selling journey. Unlike large marketplaces, Shopify’s vision is not to own the content but to democratize access to it for small and mid-sized businesses.
From content to commerce
This content includes newsletters, creator partnerships, branded podcasts, and niche communities on social media. The idea, as industry experts note, is to treat content as an asset that compounds, not just as a cost.
Unlike ads, content continues to generate discovery and engagement long after it’s published. That’s why more D2C brands are making content central to their growth strategies.
Several big names are experimenting in this space. Durex, Plum, Mother Dairy, and HDFC Bank have launched their own podcasts where celebrities share stories along their brand journey. Founder-led podcasts too are on the rise on YouTube, with voices like Nitin Kamath and Deepinder Goyal drawing large audiences in India.
The big question, however, is whether content consumption can effectively be converted into product discovery and purchase pathways. “It’s already happening at scale,” said Taneja. “Content is redefining every aspect of the traditional funnel. In the past, you had awareness at the top, intent in the middle, and purchase at the bottom. Today, one short video or live stream can take a consumer through that entire journey in under a minute.
“From a D2C lens, this convergence is even more critical. D2C brands thrive on agility, the ability to turn trends, storytelling, and community engagement directly into sales. Platforms like Instagram, YouTube, TikTok, and even WhatsApp have embedded shoppable features, which means the content is no longer just ‘top-of-funnel.’ It’s the storefront. But the magic lies in authenticity and design. Consumers don’t want to feel ‘sold to’, they want to feel entertained, inspired, or educated. If the content does that well, conversion becomes a natural byproduct. For example, an athleisure brand showing a workout routine isn’t just demonstrating leggings, it’s giving value. The leggings purchase becomes an easy next step, not a forced pitch.”
The big question: Will content sustain sales at scale?
Taneja further reveals how content is driving sales and long-term growth. “The smartest brands, especially in D2C, have realized that high-quality
content is their most defensible growth engine. Performance marketing will continue to play a role, but the real long-term moat is the kind of content that builds relationships, trust, and recall. Consumers today are spoiled for choice. They don’t buy just products, they buy stories, values, and communities.
“High-quality content allows a brand to consistently show up in ways that feel relevant and credible. And from a business lens, it directly impacts unit economics: it reduces CAC because organic discovery compounds over time, improves LTV because content nurtures loyalty and repeat purchases, and builds resilience because brands with strong content ecosystems are less dependent on fluctuating ad platforms.”
The D2C ecosystem in India is already proving this point. Beauty and personal care brands now run editorial-led platforms alongside commerce, while fashion labels thrive on creator collaborations and storytelling-driven product drops. Their growth is not accidental but built on content strategies that treat every piece not just as a post, but as a business driver.
As an enabler, Taneja adds, the results are visible across platforms. “Brands that invest in content see better conversions on our checkout stack, lower cart drops, and stronger repeat cohorts. Content doesn’t just spark sales it sustains them.”
For all the optimism, the test for content-driven commerce will lie in scale and sustainability. Rising conversions in beauty, fashion, and food show the model works, but questions remain on whether every category can replicate that success, or whether consumers will tire of content-heavy shopping pitches.
(Published in Exchange4Media)
