iPhone, make-up & designer looks: Q-Comm takes a premium turn

Premiumisation seems to be the buzzword for the season, and going hand in hand is q-commerce. Apple’s iPhone 16 series launch made headlines – first for the crazy queues at stores and then because it jumped retail domains and was available on Big Basket and Zepto too.

However, this phenomenon has gone beyond electronics. Premium make-up brands, appliances, apparels are all now available at the consumer’s doorstep in under 10 minutes.

The growing trend of premiumisation in the q-commerce space signifies a shift in consumer behaviour, as customers are not just seeking convenience but also high-end products delivered swiftly. Apple’s iPhone 16 launch this year is a testament to how q-commerce is no longer limited to daily staples but is now embracing luxury and lifestyle categories.

Meanwhile, Arvind Fashions, which operates US Polo Association in India, collaborated with Zepto operators to bring its exclusive collection to the platform.

According to the brand, “The collaboration not only enhances Zepto sellers’ portfolio but also signifies a shift in how shoppers can access fashion—from groceries and personal care to now clothing from premium international brands—all within the same rapid delivery window.”

The Shift in Consumer Behaviour

Experts suggest as disposable income rises and digital literacy deepens, Indian consumers are growing more discerning. They no longer view quick commerce as merely a stopgap for emergency purchases but as a legitimate platform for accessing high-end products.

The sheer convenience of having a premium makeup kit, a designer outfit, or even a high-end gadget delivered to one’s doorstep in minutes is fuelling this behavioural shift.

Managing Director of Arvind Fashions, Shailesh Chaturvedi, is of the opinion that this collab is bringing a new level of accessibility and convenience to customers. “That's such an exciting trend-setting solution for modern-day needs of the consumers,” he was quoted as saying.

For more context, BigBasket’s 12% of overall revenue comes from premium categories like Gourmet & World Food, Beauty, Makeup and Organic Staples.

Seshu Kumar, Chief Buying and Merchandising Officer of BigBasket shared, “Convenience is the trend in BigBasket and not convenience in premium products. These have a higher pull on quick commerce because the proportion of customers is more from higher income groups as compared to other channels.”

According to a Zepto spokesperson, the surge in convenience for premium products is driven by consumers seeking high-quality items that fit seamlessly into their busy lifestyles.

“With more people valuing time and looking for hassle-free access to quality products, quick-commerce platforms like ours are catering to this need by delivering top-quality products swiftly and reliably,” the brand said.

The psychology behind premiumisation in q-commerce rests on the growing impatience and demand for immediacy in today’s fast-paced world. This is a far cry from traditional e-commerce, where even premium purchases typically involve a wait time of 1-2 days.

Nevertheless, Zepto also believes this trend doesn't necessarily shake up e-commerce but rather complements it, offering a faster, more convenient option for consumers who prioritise premium choices and immediate access. It's about enhancing the shopping experience, not replacing it.

Challenges and opportunities

While the premiumisation of q-commerce presents immense opportunities, it also comes with its set of challenges. Maintaining the integrity of luxury products during swift deliveries is no small feat.

A brand expert mentioned, “Brands need to ensure that their items arrive in perfect condition, free of damage or mishandling. Moreover, the ultra-fast pace of delivery leaves little room for error, meaning q-commerce platforms must work closely with their logistics partners to fine-tune every step of the process.”

When it comes to preventing dupes, Zepto shared they have in place quality checks across the supply chain to ensure the authenticity of every product provided by our seller ecosystem.

As per BigBasket, “We ensure that all products are procured from authorised channels. We have a process of Quality Checks and Inspection at the time of receiving at our warehouses which filters all spurious/fake products from getting supplied to us.”

Another challenge lies in balancing inventory. Unlike everyday items, premium products may not be in constant demand, making it crucial for platforms to predict consumer behaviour accurately to avoid overstocking or understocking.

BB also plans to pilot premium ethnic apparel and footwear products, and expand the mobiles range during Diwali and scale up based on their performance.

Similarly, Zepto will offer rapid access to top brands such as USPA and Puma, along with several others across beauty, skincare, lifestyle, tech, and apparel on the platform soon.

As brands like Apple, Arvind Fashions, and numerous others embrace this trend, they’re not just tapping into the growing demand for luxury products but also redefining the role of q-commerce in the retail ecosystem.