Marico’s Managing Director and CEO Saugata Gupta said during the August 4 earnings call that growth in modern trade and marketplace e‑commerce has slowed in the last few quarters, but he stressed it is a moderation rather than a halt.
The slowdown mirrors challenges faced by other retailers. DMart, a value retailer, reported a 5.5% growth in stores that are at least two years old in Q1 FY27, down from 7.1% in the same period a year earlier.
In contrast, Marico’s quick‑commerce channel grew by more than 50% in the June quarter. It now accounts for about 5% of the company’s India business revenue, and when other digital channels are added, the total digital contribution is over 20%.
Gupta explained that quick‑commerce targets a customer segment that is less price‑sensitive and values convenience. He described the need for a "now‑want" product pack that meets this demand.
To avoid cannibalising other channels, Marico designs a distinct product architecture for each channel and is testing new products through the quick‑commerce platform.
By positioning quick‑commerce as a convenience and premium option while keeping general trade for wider reach, Marico hopes to grow its market share without internal conflicts between channels.
Despite the moderation in modern trade, the Parachute coconut oil brand posted double‑digit growth in both modern and general trade during the June quarter, helping lift the India business volume by 11%.
Marico’s FY26 annual report shows a distribution network of over 10,200 distributors and stockists that cover more than 5.8 million retail outlets across urban and rural India, alongside a strong presence in modern trade chains and e‑commerce platforms.
Overall, Marico is adapting its channel strategy to the evolving retail landscape, balancing growth across modern trade, quick‑commerce, and general trade to sustain its market position.