How Is the Quick Commerce Market Positioned In India?
Overview
Quick Commerce provides the convenience of fastest possible doorstep delivery of groceries and other consumables. The Quick Commerce industry is currently positioned in an early growing stage and is anticipated to register a double digit CAGR between FY’22P and FY’27F. There has been observed a significant increase in the Top-up and Unplanned purchases, particularly in Metro and Tier I cities which is facilitating the growth of the quick commerce industry in India.
Market
Quick commerce market is all about luxury of time & delight of receiving groceries at home in minutes. The Quick Commerce Market in India has been segmented on the basis of type of product category, gender of the consumer, type of business model, region, delivery time and average order value.
Companies with Large Product Assortment & Fastest Delivery are identified as clear leaders in the industry. Automation in the Dark Stores, Drone Technology, and Use of Electric Vehicles for Delivery is anticipated to drive the Quick Commerce Market in future.
By Product Category
Staples contributes the most in terms of revenue currently as it has relatively higher GMV than other categories and is expected to be the highest contributing category, followed by Fruits and Vegetables by the year FY’27. Beauty & Personal care contribute the least because customer still prefer to order the products from established players only rather than opting to quick- commerce companies.
By Region
Major Quick Commerce Companies expands to Metro & Tier I cities primarily as these cities have higher Internet Penetration, Working Population and Technology Awareness as compared to Tier II and below cities. In Tier I cities, People are much more tech advanced and have become habitual of buying groceries and other consumables online.
Awareness will take time in Tier II cities and almost all the major players have started or are planning to expand to Tier II cities, hence, it is expected that in future, by FY’27, Tier II and below will have a market capture of ~%.
By Gender of Consumer
It is observed that Females currently contribute more in terms of number of orders to the Quick Commerce Industry in India. This can be supported by the fact that, in India, conventionally, females are more prone towards looking for groceries and other consumables to buy for the house.
By Business Model
Dark store model is the most preferred type of delivery model for quick commerce. Majority of the companies in this segment follow the dark store delivery model. Majority of the big players in this sector are opting or have opted for the dark store models, to maintain proper supply chain methodology and for adherence towards their 10-20 minutes delivery model, they simply cannot rely on third party platforms.
By Delivery Time
Quick commerce market has all been about luxury of time, delight of delivering quickly at your respective address. Companies are opening dark stores using several geographical mapping technologies and it is the consequence of these dark stores that they have been able to deliver around 60% of all the orders within 40 mins.
By Average order Value
Quick Commerce is more dependent on refilling purpose and unplanned purchases rather than bulk ordering. Due to the area limitation of Dark Stores, number of SKU’s availability and baggage limits per, majority of the orders are below INR 600-700. A very small %age is contributing towards the order size greater than INR 1000.
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Target Customer
Smartphone users in the urban region aged 15-45 are considered as the target audience for ordering consumables online as they are young, experimental, convenience seekers who tend to do unplanned purchases. Consumer behavior is dynamically changing from value seeking to convenience seeking, resulting in weekly, small-sized purchases compared to larger, monthly purchases. This is the major factor which is driving the Quick Commerce Market in India.
Value Chain Model
Majority of the Quick Commerce Companies follow the Dark Store Model for Delivering Groceries at doorstep in minutes. In this Model, the user places the order on the mobile application, after which the order is received by the nearest dark store. The dark store then has trained professionals who pick and pack the products and delivery partner reaches the customer’s doorstep with the order in minutes.
Competitive Landscape
The competition in the industry is concentrated with presence of around than 7-8 players in the industry. Some of the major players include Swiggy Instamart, Blinkit, Zepto and Dunzo. Fast Delivery, Price, Discounts & Offers, wide product assortment and availability & Ease of Payment are the major factors that influence the buying decision of the consumer. Companies with Large Product Assortment & Fastest Delivery are identified as clear leaders in the industry.
What is the Future of India Quick Commerce market?
The demand is expected to grow with a CAGR of ~% on the basis of revenue between FY’22P and FY’27F. Automation in the Dark Stores, Drone Technology, Voice Ordering, and Use of Electric Vehicles for Delivery is anticipated to drive the Quick Commerce Market in future. Demand Prediction and Customer Behaviour Analysis is crucial to ensure sufficient availability of the groceries and to ensure minimum degradation and stock-outs of these products.
Key Segments Covered:-
By Product Category
Fruits & Vegetables
Packed food & Beverages
Staples
Beauty & Personal Care
Others
By Region
Metro & Tier I
Tier II and below
By Business Model
Dark Store Platform
Third Party Delivery Platform
By Customer’s Gender
Male
Female
By Delivery Time
0-20 Minute
20-40 Minute
40-60 Minute
60-75 Minute
By Average Order Value
< INR 300
INR 300 – INR 600
INR 600 – INR 1,000
> INR 1000
Companies Covered:-
Swiggy Instamart
Blinkit
Zepto
Dunzo
BB Now
Ola Dash
BB Now
Flipkart Quick
Key Target Audience:-
Quick Commerce Companies
E-commerce Companies
E-Grocery Companies
Logistics Companies
Cold Chain Companies
Investors & Venture Capitalists
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Time Period Captured in the Report:-
Historical Period: FY’22
Forecast Period: FY’23-FY’27F
Key Topics Covered in the Report:-
How is the Quick Commerce Market positioned in India?
India Quick Commerce Market Flowchart
Evolution of the Quick Commerce Industry
Target Addressable Audience for India Quick Commerce Market
Consumer Purchase Behavior
Channels available for shopping consumables
Comparison of E-Grocery and Quick Commerce Platform
Value Chain Model – Dark Store Delivery Platform
Supply Ecosystem and Challenges
Market Size and Segmentation
SWOT Analysis
Current Technologies Facilitating Quick Commerce Industry
Upcoming Technologies in Quick Commerce Industry
Investment and Funding in Quick Commerce Companies in India
Competitive Landscape – Cross Comparison of Major Players
Company Profiles
Case study & Analyst Recommendations
Research Methodology
For More Information on the research report, refer to below link:-
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Ankur Gupta, Head Marketing & Communications
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