Consumers increasingly willing to pay premium for fast deliveries
Increasing demand for faster delivery and convenience as well as shifting customer behavior towards ‘Unplanned Purchases’ are driving demand for the Quick Commerce Industry growth, anticipated to record 27% CAGR between FY’22 and FY27F.
The industry is currently positioned in the ‘Early Growing Stage’, according to the “India Quick Commerce Market Outlook to FY’27F” report from ResearchAndMarkets.com.
Quick Commerce provides the convenience of fastest possible doorstep delivery of groceries and other consumables. There has been a significant increase in the top-up and unplanned purchases, particularly in Metro and Tier I cities, the report said on 22 Sept 2022.
Increasing Willingness of the consumers to pay premium for quick deliveries, changing shopping habits towards more frequent unplanned & top-up purchases has led to the growth of the quick commerce market in India.
Awareness will take time in Tier II cities and almost all the major players have started or are planning to expand to Tier II cities, hence, it is expected that in future, by FY’27, Tier II and below will have a significant market capture, whereas, metro and Tier I cities is still expected to lead and contribute highest share in the market by FY’27, said the report.
The industry is still in early growing stage and, hence companies are still inventing ways about how to make this quick delivery model a stable one.
Companies are opening dark stores using several geographical mapping technologies and it is the consequence of these dark stores that they have been able to deliver around 60% of all the orders within 40 minutes.
The industry is currently concentrated with presence of 7-8 players operating in the country.
Fast Delivery, Price, Discounts and Offers, wide product assortment and availability and Ease of Payment are the major factors that influence the buying decision of the consumer, said the report.
Leading the industry are Swiggy Instamart, Blinkit and Zepto, together contributing more than 80% to the market. fiinews.com
