India’s Quick Commerce Boom Shaping the Future of Retail
In the fast-evolving world of e-commerce, a new trend is taking center stage – QUICK COMMERCE. This modern iteration of online retail promises lightning-fast deliveries, often within hours, offering convenience and speed that traditional e-commerce platforms simply cannot match. Quick commerce, or q-commerce, is reshaping how consumers access daily essentials, ranging from groceries to electronics, and is expected to revolutionise the way business is done in the retail space. In India, where consumer behaviour is rapidly changing and demand for faster services is skyrocketing, q-commerce is already making a significant impact.
The Rise of Quick Commerce: A Global Trend with Indian Potential
Quick commerce is an industry that thrives on speed. The model, which involves the delivery of products within 30 minutes to an hour, is capturing the attention of both consumers and investors. Globally, the quick commerce market is projected to reach $72.6 billion by 2025, with an expected CAGR of 9.12% from 2024 to 2029, driving the market volume to $267.90 billion by 2029. India, with its growing smartphone penetration and expanding internet access, is emerging as one of the biggest markets for quick commerce services. The sector in India is expected to reach a market size of $5 billion by 2025, driven by the growing demand for ultra-fast delivery services.
The demand for quick commerce is primarily being driven by the changing lifestyle of consumers, particularly in urban areas. With busy schedules and limited time, customers are increasingly relying on q-commerce platforms for everything from fresh groceries to personal care products. As urban populations grow and the need for speed intensifies, the quick commerce model presents a unique opportunity for businesses to provide hyper-localised solutions.
Leading Brands Shaping the Quick Commerce Landscape in India
India’s quick commerce ecosystem is home to some of the world’s most innovative and rapidly growing companies. Leading these efforts are a few unicorns that have successfully capitalised on the growing demand for speed and convenience, redefining the retail experience for millions of consumers. Companies like Blinkit, Swiggy Instamart, and Dunzo have pioneered the rapid delivery model and have become key players in the quick commerce revolution.
Blinkit (formerly Grofers) is one of India’s most well-known quick commerce platforms, which focuses on delivering groceries within minutes. Founded in 2013, Blinkit revolutionised grocery shopping in India by offering hyper-local services with delivery times as short as 10-20 minutes. As of 2023, Blinkit has expanded to over 20 cities and partnered with numerous dark stores (small, hyper-local warehouses), where inventory is kept to meet growing demand. The company reached unicorn status in 2021 after raising $100 million from Zomato, a global leader in food delivery services.
Swiggy Instamart, a part of Swiggy, the popular food delivery platform, is another major player in the quick commerce sector. Swiggy, which initially gained prominence for food delivery, ventured into quick commerce with Instamart in 2020, aiming to meet the needs of consumers who wanted fast delivery for groceries and other essentials. In just a few years, Instamart has become one of the leading players in the sector, offering delivery services in over 15 cities. With a revenue of over $400 million in 2023, Swiggy’s quick commerce arm is one of the fastest-growing parts of its business, reflecting the increasing appetite for speed among Indian consumers.
Dunzo is another unicorn that has leveraged the demand for quick commerce in India. Founded in 2015, Dunzo initially started as a delivery app for errands and local purchases. The company has expanded its services to include groceries, pharmacy products, and food delivery, offering hyper-local deliveries within an hour or less. Dunzo’s success lies in its ability to cater to multiple sectors simultaneously, creating a truly multi-faceted quick commerce platform. Dunzo raised over $240 million in funding in 2021 and reached a $1 billion valuation, cementing its position as a key player in India’s rapidly growing quick commerce sector.
The Economics of Quick Commerce: How Speed Translates to Success
Quick commerce thrives on its ability to deliver products in record time, and to do so profitably, companies must navigate a complex landscape of logistics, inventory management, and consumer expectations. The economics of quick commerce are built on the concept of efficiency—delivering small, high-demand items quickly to customers without compromising quality or service.
A 2022 report by McKinsey found that businesses in the quick commerce space can reduce customer acquisition costs by leveraging dark stores and hyper-local inventory management. With inventory placed close to consumer demand centers, companies can significantly reduce delivery time and costs, making it easier to maintain profitability even with smaller order sizes.
Moreover, with customers expecting faster delivery times, q-commerce platforms are investing heavily in advanced technology. Artificial intelligence (AI), data analytics, and machine learning are being used to optimise delivery routes, predict customer demand, and streamline supply chain operations. According to a report by Accenture, 75% of supply chain leaders in the quick commerce space believe that AI and automation are key drivers of operational efficiency and customer satisfaction.
Consumer Behaviour: The Key Driver of Growth
One of the main factors contributing to the rapid growth of quick commerce in India is the shift in consumer behaviour. The rise of digitalisation, particularly in urban areas, has led to a massive increase in e-commerce adoption. With smartphones in nearly every hand and 5G networks on the horizon, Indian consumers are increasingly looking for convenience, speed, and flexibility in their shopping experience.
The 2023 McKinsey Global Consumer Survey found that 65% of urban Indian consumers are willing to pay a premium for products delivered in less than 30 minutes. This demand for speed is creating a fertile environment for q-commerce platforms to thrive. The younger generation, in particular, values time-saving services, and with the rise of middle-class consumers who are embracing e-commerce, quick commerce is set to become a dominant force in India’s retail sector.
Why MBA in Operations & Logistics & Supply Chain Management at ASBM University is Your Gateway to Success
As the quick commerce sector expands, businesses require professionals who can handle the complexities of managing rapid deliveries, optimising supply chains, and ensuring customer satisfaction. An MBA in Operations & Logistics & Supply Chain Management provides the essential skills needed to thrive in this dynamic industry. ASBM University’s MBA in Operations & LSCM is designed to equip students with the expertise required to lead in the rapidly evolving world of supply chain management.
ASBM University’s programme is enriched by its GATI Center of Excellence, a strategic partnership with GATI, India’s leading logistics solutions provider. This collaboration ensures that students gain hands-on experience and exposure to cutting-edge industry practices, making them job-ready for roles in logistics, operations, and supply chain management.
The programme offers specialised modules in areas such as supply chain optimisation, logistics technology, and e-commerce logistics, preparing students for careers in high-demand sectors like quick commerce. With a strong focus on practical learning and industry collaboration, ASBM University has developed a robust network of alumni who have successfully transitioned into leadership roles in top companies.
Looking Ahead: The Future of Quick Commerce and Your Role in It
As the quick commerce sector continues to grow and evolve, the need for skilled professionals in operations and supply chain management will only intensify. The MBA in Operations & LSCM at ASBM University offers a comprehensive curriculum that prepares students for leadership roles in this fast-paced industry. With a blend of theoretical learning and practical exposure, ASBM University provides the perfect platform for aspiring supply chain professionals to embark on successful careers in quick commerce, logistics, and beyond.
In conclusion, India’s quick commerce sector is set to continue its rapid expansion, and the demand for specialised expertise in logistics and supply chain management will be at the forefront. With ASBM University’s MBA programme, you’ll gain the knowledge and skills needed to be part of this exciting revolution and become a leader in the supply chain industry.