A report by Kearney (a consultancy firm) highlights that Q-Commerce grocery market in India is expected to grow 3-fold between 2024-27 reaching around 1.7 lakh crores.
About Quick Commerce (Q-Commerce/On-Demand Delivery)
- Meaning: A Unique business model that delivers goods/services within 10-30 minutes of ordering. E.g., Swiggy’s Instamart, Blinkit, Zepto.
- It involves the sellers to shift from traditional warehouses located at the outskirts to the micro-warehouses located near delivery point.
Key Transformative Role of Q-Commerce
- Consumer Behaviour Driven by Convenience and Instant Gratification.
- Incremental Sales: 6-8% of all sales happening via Q-Commerce are purely incremental driven by impulsive segments like snacking, festive shopping, gifting, etc.
- Adoption is lesser in fruits, vegetables, and dairy sectors as greater priority is given to affordability and freshness.
- Premiumization: Easier access to high-end brands, some premium products are being launched first on these platforms.
- Incremental Sales: 6-8% of all sales happening via Q-Commerce are purely incremental driven by impulsive segments like snacking, festive shopping, gifting, etc.
- Reshaping Employment Dynamics
- Creating both direct employment nodes (last-mile logistics being the key driver) and indirect employment nodes (additional IT jobs, etc.).
- Generates 62-64 jobs per INR crore of monthly Gross Merchandise Value, surpassing E-Commerce (25-29 jobs).
- Structural shift in Employment: Shift towards platform based gig workers due to:
- Rising flexibility (part-time or full-time work),
- Hyperlocal employment distribution, Q-commerce stores are distributed across regions and not centralised.
- Opportunity to participate in multi-platform gig work.
- Creating both direct employment nodes (last-mile logistics being the key driver) and indirect employment nodes (additional IT jobs, etc.).
Conclusion
Rise in Q-Commerce have caused businesses to shift their investment strategies towards them, yet it must continuously adapt to consumer preferences and market dynamics while coexisting with other retail channels.