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India's Quick E-commerce Market Is Driven By One-hour Delivery
The India quick e-commerce market has witnessed rapid growth in recent years owing to the growing popularity of online shopping platforms that promise super-fast delivery of products within hours. Quick commerce platforms aim to bridge the gap between online and offline shopping experiences by providing delivery of groceries and daily essential items within a very short span, usually within 60 minutes. This has led to a shift in customer shopping behavior as the ease and speed of delivery offered by such platforms gain precedence over traditional brick-and-mortar stores. The growing preference for convenient and instant gratification among urban consumers has significantly boosted the adoption of quick commerce services in India. Key players in the sector offer customers a wide variety of products ranging from daily staples to snacks and beverages to ordered through their mobile apps.
Global Quick E-commerce Market Size is estimated to be valued at US$ 652 Mn in 2024 and is expected to exhibit a CAGR of 63% over the forecast period 2024-2031.
Key Takeaways
Key players: Key players operating in the ...
... India quick e-commerce are Blinkit, Swiggy Instamart, Zepto, Dunzo, BigBasket, Amazon Quick Commerce, Tata Neu Super App, JioMart, Flipkart Quick, Grofers. These companies have expanded their hyperlocal delivery networks across major cities to cater to the growing demand.
Growing demand: The demand for quick commerce services is growing rapidly as Indian consumers increasingly adopt online shopping for daily and weekly essentials. The pandemic has further accelerated this trend with more people now comfortable with digital shopping platforms.
Global expansion: Seeing the opportunities, global retail giants are also entering the Indian quick commerce market and competing with local players. Companies are aggressively investing in technology, infrastructure and employee training to expand operations to new cities and regions.
Market Drivers
The key driver for the India quick commerce market is one-hour delivery. Customers appreciate the fact that they can get their delivery orders within 60 minutes thanks to companies having micro-fulfillment centers located across cities. This enables quick sorting and packing of orders for swift last-mile delivery. The convenience of ultra-fast delivery at customers' doorsteps continues to be a major attraction for both new and existing customers.
Current Geopolitical Situation and its Impact on India Quick E-commerce Market Growth
The quick e-commerce market in India has seen unprecedented growth over the past few years on the back of rising internet and smartphone penetration. However, the current geopolitical tensions between India and China present some challenges for the sector's future trajectory. A large number of investors and venture capitalists who have funded the key Indian startups in this space are Chinese or Chinese-backed. With border tensions and economic diplomacy issues ongoing between the two nations, Chinese investment in the Indian market has slowed down significantly. This has made raising further capital tougher for the major Indian quick commerce players who are still in investment and expansion mode. The shortage of funds can negatively impact their ability to scale up operations swiftly across new cities and geographies. They may have to delay expansion plans or look at alternatives to Chinese funding that can support their growth aspirations. On the supply side, a large portion of technologies, infrastructure and goods that power the quick e-commerce operations in India are imported from China. Any escalation in geopolitical tensions can disrupt these crucial supply chains and increase input costs substantially. This may force the players to diversify their sourcing bases or pass on higher costs to customers eventually. Unless the geopolitical situation improves in the near future, it remains a key risk factor that can slow down the torrid growth projections of the fast-growing Indian quick commerce sector.
India Quick E-Commerce Market: Geographical Regions With Highest Value Concentration
Not surprisingly, the top metropolitan cities of India that have witnessed rapid e-commerce adoption over the past decade account for the bulk of value generated in the quick commerce market currently. Mumbai, Delhi NCR and Bengaluru alone contribute to over 50% of the total transaction value in this space. This is because factors like high-disposable incomes, widespread internet access via broadband/smartphones, modern lifestyles and density of population make quick deliveries more viable in these urban agglomerations. The top-tier cities allow sellers to achieve high order volumes in a relatively concentrated area, improving their unit economics. Meanwhile, customers in these cities are more willing to pay premium prices for delivery within 15-30 minutes given their hectic work/life routines. As players expand across other major urban centers, we can expect the value pie to distribute more evenly in the next 2-3 years. But the top 3 cities will likely retain their leading position as the main revenue drivers for the quick commerce sector.
India Quick Commerce Market: Fastest Growing Regional Market
While metros have understandably seen most of the early action, emerging mid-sized cities are emerging as the new frontier for rapid growth in India's quick e-commerce sector. Cities like Jaipur, Ahmedabad, Pune, Lucknow, Chandigarh, Vijayawada etc. with population between 5-15 million are increasingly being targeted aggressively by market players. Unlike their bigger metro counterparts, these emerging urban centres still have plenty of 'white spaces' in terms of market penetration and operational presence of quick commerce enterprises. The demand side drivers of digital adoption, income growth and busy lifestyles are also catching up fast here. More importantly, real-estate and operating costs are far more affordable for startups compared to top cities. This makes it feasible to achieve profitability sooner. As a result, the tier 2 markets are expected to register 3-4x faster revenue growth compared to metros over the next 3 years. Their smaller starting base also means higher compound annual growth rate is achievable from a percentage perspective. Tier 2 regions thus hold immense potential to emerge as the new bastions of growth for the Indian quick e-commerce landscape.
What Are The Key Data Covered In This India Quick E-Commerce Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the India Quick E-Commerce's growth between 2024 and 2031.
:- Accurate calculation of the size of the India Quick E-Commerce and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- India Quick E-Commerce Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of India Quick E-Commerce vendors
FAQ’s
Q.1 What are the main factors influencing the India Quick E-Commerce?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top India Quick E-Commerce companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the India Quick E-Commerce’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
Get more insights on this topic: https://benstiller.hashnode.dev/india-quick-e-commerce-market-will-grow-at-highest-pace-owing-to-convenience
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