India’s quick commerce industry has seen significant growth, with sales increasing by over 280 per cent in the past two years,͏͏ according͏͏ to͏͏ a͏͏ report͏͏ by͏͏ financial͏͏ services͏͏ firm͏͏ Chryseum.
Dramatic͏͏ Increase͏͏ in͏͏ GMV:
The͏͏ report͏͏ indicated͏͏ that͏͏ the͏͏ Gross͏͏ Merchandise͏͏ Value͏͏ (GMV)͏͏ of͏͏ quick͏͏ commerce͏͏ in͏͏ India͏͏ rose͏͏ from͏͏ USD͏͏ 0.5͏͏ billion͏͏ in͏͏ FY22͏͏ to͏͏ an͏͏ impressive͏͏ USD͏͏ 3.3͏͏ billion͏͏ in͏͏ FY24,͏͏ marking͏͏ a͏͏ 280͏͏ per͏͏ cent͏͏ increase.
Quick͏͏ commerce,͏͏ referring͏͏ to͏͏ the͏͏ rapid͏͏ delivery͏͏ of͏͏ small͏͏ orders͏͏ within͏͏ a͏͏ short͏͏ time͏͏ frame,͏͏ is͏͏ expanding͏͏ at͏͏ a͏͏ significantly͏͏ faster͏͏ rate͏͏ than͏͏ traditional͏͏ e-commerce.
Rapid͏͏ Growth͏͏ Outpacing͏͏ E-Commerce:
The͏͏ report͏͏ noted͏͏ that͏͏ while͏͏ India’s͏͏ e-commerce͏͏ sector͏͏ is͏͏ experiencing͏͏ an͏͏ annual͏͏ growth͏͏ rate͏͏ of͏͏ 14͏͏ per͏͏ cent,͏͏ quick͏͏ commerce͏͏ has͏͏ surged͏͏ at͏͏ an͏͏ impressive͏͏ 73͏͏ per͏͏ cent͏͏ during͏͏ FY͏͏ 2023-24.͏͏ This͏͏ underscores͏͏ a͏͏ significant͏͏ shift͏͏ in͏͏ consumer͏͏ behaviour͏͏ towards͏͏ faster͏͏ and͏͏ more͏͏ convenient͏͏ delivery͏͏ options.
Continue͏͏ Exploring:͏͏ Over͏͏ 30%͏͏ of͏͏ shoppers͏͏ rely͏͏ on͏͏ quick commerce for͏͏ essentials:͏͏ NielsenIQ
Future͏͏ Market͏͏ Projections:
The͏͏ quick͏͏ commerce͏͏ market͏͏ in͏͏ India͏͏ is͏͏ currently͏͏ valued͏͏ at͏͏ USD͏͏ 3.34͏͏ billion͏͏ in͏͏ 2024͏͏ and͏͏ is͏͏ expected͏͏ to͏͏ reach͏͏ USD͏͏ 9.95͏͏ billion͏͏ by͏͏ 2029,͏͏ growing͏͏ at͏͏ a͏͏ compound͏͏ annual͏͏ growth͏͏ rate͏͏ (CAGR)͏͏ of͏͏ over͏͏ 4.5͏͏ per͏͏ cent͏͏ during͏͏ the͏͏ forecast͏͏ period͏͏ (2024-2029).
“The͏͏ quick͏͏ commerce͏͏ industry͏͏ in͏͏ India͏͏ is͏͏ estimated͏͏ to͏͏ be͏͏ valued͏͏ at͏͏ USD͏͏ 3.34͏͏ billion͏͏ in͏͏ 2024͏͏ and͏͏ is͏͏ expected͏͏ to͏͏ reach͏͏ USD͏͏ 9.95͏͏ billion͏͏ by͏͏ 2029,”͏͏ stated͏͏ the͏͏ report.
Despite͏͏ this͏͏ rapid͏͏ growth,͏͏ the͏͏ sector͏͏ remains͏͏ largely͏͏ untapped,͏͏ with͏͏ a͏͏ penetration͏͏ rate͏͏ of͏͏ just͏͏ 7͏͏ per͏͏ cent͏͏ of͏͏ the͏͏ total͏͏ addressable͏͏ market͏͏ valued͏͏ at͏͏ USD͏͏ 45͏͏ billion.͏͏ This͏͏ suggests͏͏ a͏͏ substantial͏͏ opportunity͏͏ for͏͏ further͏͏ expansion,͏͏ as͏͏ quick͏͏ commerce͏͏ has͏͏ already͏͏ exceeded͏͏ the͏͏ market͏͏ size͏͏ of͏͏ food͏͏ delivery.
The͏͏ report͏͏ also͏͏ noted͏͏ that͏͏ to͏͏ leverage͏͏ this͏͏ potential,͏͏ quick͏͏ commerce͏͏ platforms͏͏ are͏͏ increasingly͏͏ collaborating͏͏ with͏͏ manufacturers͏͏ for͏͏ direct͏͏ sourcing,͏͏ bypassing͏͏ traditional͏͏ distributor͏͏ networks.͏͏ This͏͏ strategy͏͏ allows͏͏ platforms͏͏ to͏͏ streamline͏͏ operations,͏͏ lower͏͏ costs,͏͏ and͏͏ provide͏͏ more͏͏ competitive͏͏ pricing͏͏ to͏͏ consumers.
Continue͏͏ Exploring:͏͏ Quick commerce set͏͏ to͏͏ drive͏͏ India’s͏͏ gross͏͏ order͏͏ value͏͏ to͏͏ USD͏͏ 10͏͏ Bn͏͏ by͏͏ FY26
“Quick͏͏ commerce͏͏ platforms͏͏ are͏͏ collaborating͏͏ with͏͏ manufacturers͏͏ for͏͏ direct͏͏ sourcing͏͏ to͏͏ bypass͏͏ the͏͏ traditional͏͏ distributor͏͏ network,”͏͏ the͏͏ report͏͏ added.
Additionally,͏͏ the͏͏ technology͏͏ infrastructure͏͏ of͏͏ quick͏͏ commerce͏͏ platforms͏͏ is͏͏ built͏͏ to͏͏ facilitate͏͏ ongoing͏͏ enhancements͏͏ in͏͏ operational͏͏ processes,͏͏ improving͏͏ agility͏͏ and͏͏ speed͏͏ throughout͏͏ the͏͏ value͏͏ chain.͏͏ These͏͏ innovations͏͏ are͏͏ enabling͏͏ quick͏͏ commerce͏͏ platforms͏͏ to͏͏ deliver͏͏ more͏͏ quickly͏͏ and͏͏ efficiently,͏͏ meeting͏͏ the͏͏ rising͏͏ demand͏͏ for͏͏ instant͏͏ deliveries͏͏ in͏͏ India.
As͏͏ the͏͏ industry͏͏ continues͏͏ to͏͏ evolve,͏͏ experts͏͏ anticipate͏͏ that͏͏ quick͏͏ commerce͏͏ will͏͏ become͏͏ an͏͏ increasingly͏͏ vital͏͏ component͏͏ of͏͏ India’s͏͏ retail͏͏ landscape.
