When we started bigbasket over a decade ago, the biggest question in consumers’ minds was simple: “Can groceries really be delivered online?” The first phase of India’s e-grocery journey was about reliability, proving that digital platforms could consistently deliver staples to households.
The second phase was defined by speed. The rise of quick commerce brought 30-minute and then 10-15-minute delivery windows. For a while, this thrilled consumers. But today, speed is no longer a differentiator, just a given. Every platform promises it, and most carry the same portfolio of national brands.
This has created a paradox. Adoption is higher than ever, but differentiation is lower than ever. If competition revolves only around discounts and delivery times, the industry risks a race to the bottom. The next decade will be defined not by speed, but by ownership of supply chains, shelves and consumer trust. This is where private labels matter.
Grocery is unlike any other category. A poor experience with clothing may be tolerated, but a poor experience with flour or milk breaks trust immediately. And trust, once lost, is extremely hard to rebuild. Consumers do not return to a platform out of loyalty to its app icon. They return because they know their rice, pulses or tomatoes will be of consistent quality. This predictability is difficult to guarantee when platforms rely entirely on third-party FMCG products sourced through fragmented channels.
Private labels change that equation. They allow platforms to set their own standards, control sourcing and take responsibility for quality. Over time, a shopper does not just buy rice; they buy this rice, because it delivers the same experience week after week.
Globally, Trader Joe’s in the US and Aldi in Europe have shown how private labels can move from being budget alternatives to the default trusted choice. India now has the same opportunity, to make private labels synonymous with reliability and consistency. Importantly, this does not mean replacing FMCG brands. The strongest platforms will deliver both the recall of national brands and the innovation of in-house labels.
For too long, supply chains were treated as invisible plumbing. But in e-grocery, they are a strategy. Private labels require deeper integration that is direct contracts with farmers, investment in cold chains, packaging, quality labs and demand forecasting. This is not just about reducing costs. It creates resilience.
When inflation spikes or weather disrupts fresh produce, platforms that control their supply chains can absorb shocks far better than those dependent on external distributors. Globally, Costco’s Kirkland Signature and Carrefour’s organic range succeeded because these retailers invested early in supply chain ownership. In India, where agricultural volatility is constant, this level of control is even more critical. It is what will separate platforms that thrive from those that remain vulnerable to price shocks.
Also read: Can quick commerce sustain its fast and furious growth?
Today, most e-grocery platforms appear similar to consumers. They deliver the same detergents, biscuits and branded staples, and switching is effortless. Private labels create defensibility by offering products that are not interchangeable. They build unique associations that cannot be compared on price elsewhere.
The challenge is perception. In India, private labels are still often seen as cheaper substitutes rather than as brands in their own right. But this is starting to change. If executed well, private labels can expand into categories where consumers seek differentiation such as organic foods, health snacks, superfoods, regional staples.
In Europe, Aldi’s private labels now command loyalty across aspirational categories. In the US, Costco’s Kirkland Signature often outsells FMCG incumbents. Indian platforms must take a similar long-term view, positioning private labels as aspirational, not merely affordable.
The influence of private labels extends beyond consumers. They can reshape how producers operate. Traditional wholesale channels expose farmers and small manufacturers to uncertainty in demand, fluctuating prices and delayed payments. Direct sourcing for private labels offers stability, visibility and the potential for scale.
Globally, Whole Foods’ 365 line showed how long-term private-label sourcing could benefit smaller producers while strengthening the retailer’s positioning. In India, where agriculture still employs over 40 percent of the workforce, this shift could have a transformational impact. It can reduce wastage, improve farmer incomes and build more transparent food systems.
The industry stands at a turning point. Speed defined the last three years; private labels will define the next 10.
But the risk lies in treating them narrowly as margin boosters or side projects. That would be short-sighted. Private labels are about much more
India’s e-grocery sector has proved it can deliver speed and convenience. The question now is whether it can build trust, resilience and defensibility. Private labels are the lever to make that happen.
This journey is not about replacing FMCG brands but about complementing them. National brands bring heritage and recall, while private labels bring consistency, value and innovation. Together, they can create an ecosystem that serves consumers better and builds stronger supply chains.
If platforms get this right, they will not just win on convenience or discounts. They will build brands that households depend on, enable farmers to thrive, and strengthen the resilience of India’s food systems.
The industry’s choice is clear. We can continue competing on surface-level speed or invest in the harder, slower, but ultimately more rewarding task of building private labels. The path we choose will shape the future of e-grocery in India.
(The writer is co-founder and CEO, bigbasket)
First Published: Sep 19, 2025, 11:30
Subscribe Now