EXCLUSIVE: ‘Tata Group’s StarQuik not in Q-commerce rat race’, says K Radhakrishnan, Co-founder
Star Bazaar, a retail chain owned by Trent Hypermarket Pvt Ltd is a part of the Tata Group. Trent recently announced plans to add 20-25 Star Bazaar stores in FY25, taking the overall footprint to around 90 stores by the end of the year.
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The rise of Q-commerce platforms has created new opportunities for grocery shopping in the country, with multiple players entering the hyper-local fast delivery market to capture a portion of the growing consumer base. However, Tata Group’s StarQuik has planned to stay away from the Q-commerce game.
StarQuik was initially launched in Gurgaon in 2014 as GrocerMax by K. Radhakrishnan and Gaurav Juneja. It came under Tata’s aegis in 2017 when Tata Group sought to enter the e-grocery space. Shortly after, GrocerMax shut down in Gurgaon and shifted operations to Mumbai. The platform’s strategy of sourcing groceries from Star Bazaar and delivering them to consumers has been successful. StarQuik currently delivers groceries in Ahmedabad, Mumbai, Pune, Bangalore, and Hyderabad.
At the Retail Technology Conclave, ReTechCon 2024, K. Radhakrishnan, Co-founder of StarQuik, spoke to Storyboard18 about the platform’s growth, the Q-commerce race, and the ongoing competition between traditional retailers and Q-commerce platforms.
Radhakrishnan said, “StarQuik is an omni-channel company. We are not an independent, stand-alone business. Our purpose is to serve Star Bazaar stores, allowing customers to shop both in-store and online. We have no intention of turning StarQuik into a standalone entity with its own inventory. We source stock directly from Star Bazaar stores.”
He further explained, “We are not part of the quick commerce game, nor do we intend to be. We are piloting a few formats, but very few businesses operate in the omni-channel space that we are in. More importantly, I believe omni-channel is the only model that has a good chance of being profitable.”
When asked about StarQuik’s profitability, Radhakrishnan said, “I can’t disclose specific numbers, but I’m confident that our performance is better than many others. StarQuik will grow as Star Bazaar grows. Our growth trajectory is directly tied to store growth. We are a service for in-store shoppers who also buy grocery online.”
Radhakrishnan added, “If a customer places an order online, we deliver within three hours. However, we prioritize offering top-quality products, which is very important. Our Star Bazaar stores provide excellent quality fruits, vegetables, meat, and staples. Our unique selling proposition is that we deliver to customers at the same price as they’d pay in-store. This has resonated with our customers. Star Bazaar has performed well in recent years, and StarQuik will grow alongside it.”
Recently, BigBasket pivoted to a Q-commerce model, moving from scheduled deliveries to offering products in 10 minutes.
When asked if StarQuik would consider shifting to Q-commerce, Radhakrishnan replied, “No, we are not doing that. We are omni-channel. We reflect the store’s offerings and deliver whatever is available in-store to our customers.”
Discussing the ongoing price war between Q-commerce platforms and retailers, Radhakrishnan said, “I don’t think retail store sales are declining. In fact, it’s the e-commerce platforms that were already delivering groceries in three to five hours that are seeing a decline, as Q-commerce players now offer deliveries in 10 to 15 minutes.”
He continued, “I believe online and offline consumers are different. Today, many consumers still prefer to go out and buy groceries for an entire month.”
Addressing concerns over alleged unfair trade practices by e-commerce and Q-commerce platforms, Radhakrishnan said, “I feel offline players are offering more discounts compared to online platforms, or they are at least on par. India has become a discount-driven market, both online and offline. There was a time when products were sold at MRP, but in the grocery segment, offline players are offering deeper discounts, which online platforms can’t match. However, if consumers want groceries delivered in 15 minutes, they’ll have to pay extra for that. Across all segments, lower prices have become essential.”
Star Bazaar, a retail chain owned by Trent Hypermarket Pvt. Ltd., is part of the Tata Group. Trent recently announced plans to add 20 to 25 Star Bazaar stores in FY25, increasing its total footprint to around 90 stores by the end of the year.
