Reliance Retail's hyperlocal arm posts scorching growth but premium brands go slow—for now

Premium brands—typically priced 15% to 30% higher than mass-market products—continue to favour established quick commerce players that offer broader reach, higher order volumes, and stronger consumer recall.

Several premium categories like wellness, healthy snacking, and nutritional supplements are yet to mature given JioMart’s late entry in the instant grocery delivery space, said Satish Meena, analyst at market research firm Datum Intelligence.

“Rival platforms have had the time to grow beyond groceries, expand their seller base, as well as experiment with premium assortment. JioMart could get there over time."

Reliance Retail’s hyperlocal delivery arm JioMart is scaling up its quick commerce business by adding stores and expanding delivery coverage. But despite strong growth, several premium categories remain underdeveloped, leading brands to treat the platform as a secondary sales channel.

Premium brands—typically priced 15% to 30% higher than mass-market products—continue to favour established quick commerce players that offer broader reach, higher order volumes, and stronger consumer recall.

Several premium categories like wellness, healthy snacking, and nutritional supplements are yet to mature given JioMart’s late entry in the instant grocery delivery space, said Satish Meena, analyst at market research firm Datum Intelligence.

“Rival platforms have had the time to grow beyond groceries, expand their seller base, as well as experiment with premium assortment. JioMart could get there over time."

Pricey brands go slow

Executives at at least two premium consumer brands told Mint that while JioMart’s growth trajectory is encouraging, its quick commerce operations are still evolving in terms of demand consistency and geographical penetration. In contrast, established quick platforms like Eternal-owned Blinkit, IPO-bound Zepto, and Swiggy Instamart have already built dense delivery networks and habitual usage, making them the first choice for high-frequency premium purchases.

“Some premium categories are still evolving on the platform," said the founder of a Mumbai-based wellness company, asking not to be named. “Segments like healthy snacking, plant-based nutritional supplements, as well as functional beverages still haven’t matured fully to find a place in JioMart." The brand gets less than 1% of its monthly sales from JioMart, against nearly 30% from rival quick commerce platforms combined.

Similarly, the founder of a personal care brand, again from Mumbai, said the company lists only a limited selection of products on JioMart, citing slower sales for offerings priced about 20% higher than mass-market brands such as Hindustan Unilever and Procter & Gamble that dominate demand on the platform.

Reliance Retail did not respond to queries sent by Mint.

Healthy metrics, yet…

JioMart entered the quick commerce race much later than its peers, in late 2024. It fulfilled over 1.6 million daily orders in the December quarter of FY26, up nearly 53% from the previous quarter. It added 5.9 million new customers during the period, while purchase frequency, measured by repeat orders, improved to about 2x that of competitors, the retailer said in its Q3 investor presentation.

In comparison, Blinkit recorded nearly 2.4 million daily orders in the September quarter, while Swiggy Instamart logged roughly 1.1 million.

“We have the largest footprint of stores as well as the widest reach compared to other quick commerce players which is helping us scale fast," Dinesh Taluja, chief financial officer of Reliance Retail, said during the analyst call on Friday.

India’s quick commerce market remains fiercely competitive, with platforms prioritizing expansion, delivery, and customer acquisition—often at the cost of near-term profitability. Investments in hyperlocal commerce weighed on Reliance Retail’s EBITDA margin in the December quarter, too, even as it reported its highest-ever gross revenue of ₹97,605 crore.

Blinkit currently leads the segment with nearly 50% market share, followed by Zepto, Swiggy Instamart, BigBasket, Flipkart Minutes, and Amazon Now, according to a September note by BofA Securities.

Premium brands = Better economics

Premium brands are critical for quick commerce platforms to scale sustainably, Datum's Meena said.

“They typically drive higher average order values, better margins, and repeat purchases while also shaping consumer perception of the platform as a destination beyond essentials. Over time, this mix becomes important for improving unit economics even if value-led categories bring early growth," Meena added.

Gourmet and premium categories have become focus areas for quick commerce players as they move upmarket in search of high-end, better-paying customers, Mint reported in October.

Premium brands also generally spend more on ads than mass-market brands, translating into revenue opportunities for e-commerce marketplaces, according to Meena.

Instant delivery contender

However, JioMart may still have the chance to emerge a strong instant delivery contender in the essentials space, thanks to its footprint of over 3,000 stores–walk-in and dark stores combined–serving more than 5,000 pincodes across 1,000 cities.

“We have the biggest FnV (fruits and vegetables) supply chain and one in four orders comprise FnV. Hence, our repeat order frequencies are 2x of any other quick commerce platform," CFO Taluja said during the earnings call.

According to Datum’s Meena, JioMart may benefit from a positioning anchored in accessibility and affordability giving it a competitive edge over value retailers such as DMart and Vishal Mega Mart. “This could make it a strong platform for staples and FMCG labels, while newer or premium brands often need the merchandising and visibility that specialist quick commerce players already provide."