Quick commerce, characterized by ultra-fast delivery services, is poised for significant growth in 2025. According to a recent report by Bernstein, India’s quick commerce sector is expected to expand beyond groceries into new categories and cities, particularly as Tier-2 and smaller cities embrace this model.t
Key Highlights
- Projected Growth: The industry is estimated to witness a 75% or more year-on-year (YoY) growth, outpacing traditional retail, which is projected to grow in the low teens.
- Market Potential: Industry estimates suggest that the top 40-50 cities in India constitute a $250 billion grocery market. Quick commerce, with its unique advantages of proximity, competitive pricing, and wide selection, is emerging as a disruptive force within this space.
Understanding Quick Commerce
Quick commerce refers to the rapid delivery of goods, typically within 10 to 30 minutes of ordering. This model leverages a network of strategically located micro-warehouses or dark stores to ensure swift deliveries.
Expansion into New Categories
While groceries have been the primary focus, quick commerce platforms are diversifying into various categories, including:
- Electronics: Items such as mobile accessories, headphones, and chargers are now being delivered rapidly to meet urgent consumer needs.
- Pharmaceuticals: Over-the-counter medicines and health essentials are becoming part of quick delivery services, enhancing accessibility.
- Personal Care Products: Consumers can receive beauty and hygiene products swiftly, catering to last-minute requirements.
- Stationery and Office Supplies: Immediate delivery of essential office supplies supports the growing remote working population.
ALSO READ | Update Aadhaar Card on UIDAI Site: Step-by-Step Guide
Quick Commerce Expansion into New Cities
The adoption of quick commerce is no longer limited to metropolitan areas. Tier-2 and smaller cities are increasingly embracing this model due to:
- Improved Infrastructure: Enhanced internet connectivity and logistics networks facilitate the expansion into smaller cities.
- Changing Consumer Behavior: A growing preference for convenience and time-saving solutions drives demand beyond major urban centres.
- Competitive Advantage: Local retailers in smaller cities are partnering with quick commerce platforms to expand their reach and customer base.
ALSO READ | Fabtech Technologies Cleanrooms IPO: Key Details, Financials, and Investment Insights
Advantages of Quick Commerce
- Speed: Delivery times as short as 10 minutes cater to immediate consumer needs.
- Convenience: Consumers can order a wide range of products from the comfort of their homes.
- Availability: Extended operating hours ensure access to essentials beyond traditional store timings.
Challenges Ahead
Despite the promising growth, the quick commerce sector faces several challenges:
- Operational Costs: Maintaining a network of micro-warehouses and ensuring rapid deliveries can be expensive.
- Profitability Concerns: High discounts and competitive pricing strategies may impact profit margins.
- Regulatory Hurdles: Compliance with local regulations, especially in new markets, requires careful navigation.
ALSO READ | Top 4 Fast Food Franchises to Start in 2025: Investment, Returns & More
Future Outlook
The quick commerce industry is expected to reach a scale comparable to traditional e-commerce giants like Amazon and Flipkart by 2025. Industry leaders predict that the fundamentals of quick commerce will evolve dramatically, with improvements in customer value propositions, unit economics, and operating leverage.
The rapid expansion of quick commerce into new categories and cities signifies a transformative shift in the retail landscape. As consumers increasingly prioritize speed and convenience, quick commerce platforms are well-positioned to meet these demands, reshaping how products are purchased and delivered across India.
Download the ffreedom app today and access expert-led courses on business tips and entrepreneurial insights. Also, subscribe to our YouTube channel for regular updates and practical tips. Your dream business is just a click away—get started now!
