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.
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:-
Related
Reports:-
Contact Us:-
Ken
Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
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