FMCG giants raise ad spends as quick commerce reshapes brand strategy

MUMBAI: Quick commerce may be winning the race to the doorstep, but FMCG brands are putting more money behind the name on the packet. India’s biggest consumer companies are stepping up advertising and promotional spending as they rethink how much of their growth should depend on visibility inside rapid-delivery apps.

The shift comes as platforms such as Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes increasingly influence product discovery, impulse purchases and everyday consumption. Rather than pulling back from the channel, FMCG companies are looking to complement quick-commerce visibility with stronger brand-building that can travel across retail and digital platforms.

The June quarter offered an early glimpse of that strategy ahead of the festive season. Nestlé India increased advertising expenditure by more than 40 per cent year-on-year in Q1, with managing director Manish Tiwary saying the company had accelerated operational savings while continuing to increase investments behind its brands. Digital platforms now account for about 55 per cent of Nestlé India’s advertising budget, compared with 33 per cent in 2021.

Marico, meanwhile, increased advertising and sales promotion expenditure by 25.2 per cent year-on-year to Rs 327 crore. The Parachute and Saffola maker reported 22.8 per cent revenue growth during the quarter, with premiumisation and brand investments remaining central to its growth strategy.

Colgate-Palmolive India was another major spender, raising promotional expenditure by 33 per cent year-on-year to Rs 252 crore. The higher outlay comes ahead of consumption-heavy periods including Onam, Raksha Bandhan and the wider festive season.

At Dabur India, the approach has been more about reshuffling the media mix. CFO Ankush Jain said the company continues to maintain advertising and promotion expenditure according to business requirements while adjusting the balance between above-the-line and below-the-line investments based on competition and market conditions.

Hindustan Unilever remains the biggest spender among the country’s FMCG majors, putting around Rs 1,657 crore into advertising and promotions during the June quarter. While its increase was more modest than some peers, CEO and managing director Rohit Jawa said investments had been strategically stepped up to support portfolio transformation and premiumisation.

The bigger question is why brands are spending more on advertising while quick commerce itself is becoming a stronger growth engine.

For one, the platforms have moved beyond being simply delivery channels. Dabur said its quick-commerce business grew 55.6 per cent in FY26, helping drive a 35 per cent increase in overall e-commerce sales. HUL has similarly described quick commerce as strategically important for product discovery, premium-category adoption and the creation of new consumption occasions.

Godrej Consumer Products has also identified quick-commerce expansion as a priority, while Tata Consumer Products and Marico have been adapting product sizes, innovation pipelines and distribution strategies for rapid-delivery platforms.

Yet there is a catch: winning a sponsored slot on an app does not necessarily mean winning the consumer.

Industry executives increasingly see the need to balance paid visibility, sponsored placements and discount-led sales with investments that make consumers actively seek out a brand. That becomes particularly important as D2C brands and private labels compete for the same digital shelf.

In other words, quick commerce can decide where the purchase happens, but brand equity can still determine what gets put in the basket. For FMCG companies heading into the festive season, the strategy appears to be less about choosing between quick commerce and advertising, and more about making the two work together.