Q-Commerce vs retail: Milind Karmarkar weighs in on Zomato, Swiggy vs D-Mart, V-Mart

As quick commerce continues to reshape India’s retail landscape, investors remain divided on the long-term sustainability of its growth compared to traditional big-box retail. Speaking in an interaction with ET Now, fund manager Milind Karmarkar of Dalal &Barocha emphasized the importance of both segments, noting that while quick commerce has seen strong adoption in high-density, high-income urban areas, traditional retail remains indispensable, especially in smaller towns.

Zomato and Swiggy vs. D-Mart and V-Mart: Where Should Investors Bet?

For long-term investors wondering whether to bet on the rapid rise of quick commerce stocks like Zomato and Swiggy or stay grounded with D-Mart and V-Mart, Karmarkar suggested a balanced approach.


"As a conservative investor, I hold both in my portfolio. While I do see potential turbulence in quick commerce, I still believe there is at least five years of solid growth ahead," he explained.

He also pointed out the possibility that as Indian cities expand, the demand for quick commerce could sustain beyond the next five years. However, he acknowledged that the landscape could evolve, with some quick commerce players struggling to maintain profitability.

"While quick commerce may see some players exit the space, large-format grocery stores will continue to thrive, given their established customer base and ability to cater to bulk shopping needs," he added.

Quick commerce’s urban advantage

According to Karmarkar, the success of quick commerce platforms like Zomato’s Blinkit and Swiggy Instamart hinges on their ability to cater to high-population-density cities with a sizable per capita income. "Major cities will continue to see strong demand for quick commerce services, particularly for essential, last-minute purchases," he explained.

Also read: Promoters cashing out? 10 companies witnessing largest stake sales in Dec quarter

However, he further pointed out that consumers still prefer purchasing bulk items such as large packs of flour from established retail stores rather than quick commerce platforms.

Despite its rapid growth, Karmarkar believes quick commerce is primarily eating into the local kirana stores’ market share rather than significantly impacting big-box retailers.

"Earlier, kirana stores offered home delivery via phone calls, but app-based deliveries with five to seven-minute fulfillment times have created a new attraction," he noted.

However, he also cautioned that this fascination may fade over time.

Traditional retail’s enduring strength

While quick commerce has made inroads, large-format retail chains such as D-Mart and V-Mart continue to expand, particularly in smaller towns and lower-income regions.

"Traditional grocery formats will continue to thrive where per capita income is lower, as quick commerce remains more suited for affluent urban centers," Karmarkar stated. He also highlighted that several major corporates that initially entered modern retail have shifted strategies, reinforcing the resilience of traditional retail models.

This resilience is why analysts believe that while quick commerce will remain relevant in metros, big-box retailers will maintain their dominance across broader geographies. "Even in urban markets, traditional retail formats will see steady growth, although at a slower pace compared to their penetration in smaller cities," Karmarkar said.

The future of retail stocks

While quick commerce is redefining convenience, large-format retail continues to offer unmatched value, particularly outside metro hubs.

With consumer habits constantly evolving, the coming years will determine whether quick commerce can sustain its breakneck pace or if the tried-and-tested big-box retail model remains the undisputed leader in Indian retail.

Also read: NTPC Green shares crack 9%, hit 52-week low as shareholder 3 month lock-in period ends today

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)