Quick Commerce Ad Spends Erase FMCG Profitability in India

Quick commerce is becoming less profitable for Indian FMCG companies as rising advertising costs on these platforms erode margins. Profitability now rivals traditional trade channels like kirana stores, driven by impulse buying and competitive ad auctions.

• FMCG quick commerce margins now mirror traditional retail.
• Increased ad spending on platforms is the primary margin eroder.
• Impulse purchases on quick commerce force higher ad investments.
• Peak-hour advertising costs have nearly doubled recently.
• Overall quick commerce margins for FMCG fell 3-5% in 6 months.
• Quick commerce remains a strategic, high-growth channel for FMCG.

Read the full story on Quick Digest.