Eternal's Blinkit and Swiggy are taking different approaches to product differentiation in India's quick-commerce market, with Blinkit choosing to stay away from private labels while Swiggy is leaning on exclusive products and a differentiated assortment to attract customers.
The contrasting strategies emerged from the companies' latest earnings calls, offering a glimpse into how the two rivals are positioning their businesses as competition intensifies and both seek sustainable growth.
During Eternal's Q2 FY27 earnings call, Chief Financial Officer Akshant Goyal said the company does not believe private labels are an area where it has the expertise to compete effectively.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
“We have to play to our strengths,” Goyal said, adding that Eternal would focus on businesses where it believes it has the capabilities and insights to build a successful operation.
The comments suggest Blinkit is prioritising its core quick-commerce model rather than venturing into private-label products, which can offer platforms greater control over pricing, product differentiation and margins.
Instead, Blinkit is expanding its assortment, particularly in larger cities, while pushing into smaller markets. Eternal said the economics of its expansion into Tier 2 and Tier 3 cities remain robust, with store payback periods proving attractive and competition relatively lower than in major urban centres.
The company also said its product range in smaller cities is broadly a subset of what it offers in metros, although customer preferences and product mix vary. Items that are harder to find in smaller markets can see stronger demand when they become available through the platform.
Swiggy, meanwhile, is placing greater emphasis on differentiated assortment as a way to establish a stronger position in quick commerce.
During its Q1 FY27 earnings call, CEO Sriharsha Majety said the company's focus on differentiated products was helping it build a more resilient business and reduce its dependence on competitors' moves.
Swiggy has also highlighted its efforts to strengthen its product offering as it seeks to accelerate growth after prioritising contribution-margin improvement over the past several quarters.
ALSO READ: Swiggy Instamart Faces Food Safety Complaints Over Alleged Insects In Noice Products
Majety said the company had gained greater flexibility to pursue growth after bringing quick-commerce contribution margins close to break-even. Swiggy indicated it was prepared to operate within a contribution-margin range of around zero to negative 100 basis points as it pursued growth, subject to changes in competitive intensity.
The divergence comes as quick-commerce companies expand their store networks, broaden product ranges and compete for more frequent customer purchases. Blinkit plans to accelerate store additions, with a significant share of its expansion expected in smaller cities.
Eternal has also said it sees substantial room for growth in quick commerce, including through higher monthly transacting users and a wider assortment. Swiggy, for its part, is betting that product differentiation and improved monetisation can support growth without sacrificing long-term business sustainability.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
