India's Quick Commerce: A Rapid Revolution in Retail

India's Quick Commerce retail sector is witnessing significant growth, with projections indicating a rise from 0.3% contribution in 2023 to 2-3% by 2028. Companies are expanding into Tier 2 and 3 cities to tap untapped markets, with a focus on faster deliveries and broader product assortments.

India's Quick Commerce retail market is charting an extraordinary growth path. According to a report by Anand Rathi, multiple players can coexist within this rapidly expanding sector. In 2023, India's retail market was valued at Rs 76 trillion to Rs 78 trillion, with expectations to soar to Rs 116 trillion to Rs 124 trillion by 2028. Quick Commerce's share, in particular, is projected to leap from 0.3% (Rs 224 billion) in 2023 to a robust 2-3% (Rs 2,320 billion to Rs 4,240 billion) by 2028, showing an impressive CAGR of 60-80%.

The transformation of India's Quick Commerce is evident on multiple fronts. Platforms are diversifying their product categories and leveraging technology-driven distribution on the supply side, enhancing planning and forecasting for brands. On the delivery end, the emphasis on faster service at competitive prices compared to traditional Kirana stores is prevalent. This evolution not only offers convenience but also cultivates consumer habits, increasingly attracting buyers amidst busy and digital-centric lifestyles.

With a surge in online penetration, Quick Commerce is appealing to a broader demographic, including housewives and senior citizens, particularly in top-tier cities accounting for over 90% of the sector's current contribution. The strategic push into Tier 2 and 3 cities evidences the industry's focus on unexplored markets, aiming to tap into growth opportunities and cater to cost-conscious consumers. As a result, companies like Blinkit, Instamart, and Zepto are scaling operations, expanding their presence, and diversifying product offerings to encompass everything from groceries to electronics, positioning themselves for a bustling future in the Indian market.

(With inputs from agencies.)