Increasing demand for Faster Delivery & Convenience and Shifting Customer behavior towards Unplanned Purchases
The Quick Commerce Industry is currently positioned in the Early Growing Stage and is anticipated to showcase a CAGR close to 27% between FY’22 and FY’27F.
The report includes various aspects including, the evolution of quick commerce Industry, comparison of the quick commerce platform with other online channels, need & opportunities for the quick commerce players in India describing the target addressable market, the growth drivers and the supply side challenges faced by the industry.
It includes detailed explanation of the value chain model which is being followed by major quick commerce players, developments, challenges, seasonality trends, current & upcoming technologies facilitating the industry. It gives detailed explanation of investment analysis, competitive scenario including cross comparison between major players, SWOT Analysis, and detailed company profiles of major players including their strength and weaknesses and concluding with analyst recommendations.
Quick Commerce provides the convenience of fastest possible doorstep delivery of groceries and other consumables. 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.
Increasing Willingness of the consumers to pay premium for quick deliveries, changing shopping habits towards more frequent unplanned & top-up purchases has led to the growth of the quick commerce market in India.
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 significant market capture, whereas, metro & Tier I cities is still expected to lead and contribute highest share in the market by FY’27.
The industry is still in early growing stage and hence, companies are still inventing ways, how to make this quick delivery model a stable one. 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.
The industry is currently concentrated with presence of 7-8 players operating in the Quick Commerce industry in India. 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. The major players include Swiggy Instamart, Blinkit and Zepto, together contributing more than 80% to the market. Companies with Large Product Assortment & Fastest Delivery are identified as clear leaders in the industry.
Future Outlook and Projection
The demand for the Quick Commerce is expected to expand with at a double digit of CAGR on the basis of GMV 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 Cus tomer Behaviour Analysis is crucial to ensure sufficient availability of the groceries and to ensure minimum degradation and stock-outs of these products.
- 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.
- By Gender of the 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 follow the dark store delivery model.
- By Delivery Time: Quick commerce market has all been about luxury of time, delight of delivering quickly at your respective address.
Need and Opportunity
- Target Addressable Audience for India Quick Commerce Market
- Quick Commerce Landscape
- Consumer Purchase Behaviour
- Channels available for shopping consumables
- Comparison of E-Grocery and Quick Commerce Platform
- How can companies promote themselves?
- Key Adoption Points for Quick Commerce Companies in India
- Case Study of Blinkit
- Swiggy Instamart
- BB Now
- Ola Dash
- BB Now
- Flipkart Quick
Time Period Captured in the Report:
- Historical Period: FY’22
- Forecast Period: FY’23-FY’27F
Key Segments Covered
Fruits & Vegetables
- Packed food & Beverages
- Beauty & Personal Care
- Metro & Tier I
- Tier II and below
By Business Model
- Dark Store Platform
- Third Party Delivery Platform
By Customer’s Gender
By Delivery Time
- 0-20 Minute
- 20-40 Minute
- 40-60 Minute
- 60-75 Minute
By Average Order Value
- < INR300
- INR 300 – INR 600
- INR 600 – INR 1,000
- > INR 1000
11.1 Research Methodology
11.3 Contact the Publisher
- Swiggy Instamart
- BB Now
- Ola Dash
- BB Now
For more information about this report visit https://www.researchandmarkets.com/r/tyl52r
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