Thursday, 9 June 2022

India Quick Commerce Market Outlook to FY’27F: Ken Research

The report titled India Quick Commerce Market Outlook to FY’27F - Driven by Increasing demand for Faster Delivery & Convenience and Shifting Customer behavior towards Unplanned Purchases provides a comprehensive analysis on the status of the Quick Commerce Market in India. The report includes various aspects including, the evolution of quick commerce Industry, comparison of the quick commerce platform with other online channels, need & opportunities for the quick commerce players in India describing the target addressable market, the growth drivers and the supply side challenges faced by the industry.

It includes detailed explanation of the value chain model which is being followed by major quick commerce players, developments, challenges, seasonality trends, current & upcoming technologies facilitating the industry. It gives detailed explanation of investment analysis, competitive scenario including cross comparison between major players, SWOT Analysis, and detailed company profiles of major players including their strength and weaknesses and concluding with analyst recommendations.

Market Overview

Quick Commerce provides the convenience of fastest possible doorstep delivery of groceries and other consumables. There has been observed a significant increase in the Top-up and Unplanned purchases, particularly in Metro and Tier I cities which is facilitating the growth of the quick commerce industry in India.

The Quick Commerce Industry is currently positioned in the Early Growing Stage and is anticipated to showcase a CAGR close to 27% between FY’22 and FY’27F.

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.

Market Segmentation

By Product Category

Staples contributes the most in terms of revenue currently as it has relatively higher GMV than other categories and is expected to be the highest contributing category, followed by Fruits and Vegetables by the year FY’27.

Beauty & Personal care contribute the least because customer still prefer to order the products from established players only rather than opting to quick- commerce companies.

By Region

Major Quick Commerce Companies expands to Metro & Tier I cities primarily as these cities have higher Internet Penetration, Working Population and Technology Awareness as compared to Tier II and below cities.

In Tier I cities, People are much more tech advanced and have become habitual of buying groceries and other consumables online.

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 & Tier I cities is still expected to lead and contribute highest share in the market by FY’27.

By Gender of the Consumer

It is observed that Females currently contribute more in terms of number of orders to the Quick Commerce Industry in India. This can be supported by the fact that, in India, conventionally, females are more prone towards looking for groceries and other consumables to buy for the house.

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By Business Model

Dark store model is the most preferred type of delivery model for quick commerce. Majority of the companies follow the dark store delivery model.

Many of the popular and big players in this sector are opting or have opted for the dark store models, to maintain proper supply chain methodology and for adherence towards their 10-20 minutes delivery model, they simply cannot rely on third party platforms.

By Delivery Time

Quick commerce market has all been about luxury of time, delight of delivering quickly at your respective address.

The industry is still in early growing stage and hence, companies are still inventing ways, 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 mins.

By Average Order Value

Quick Commerce is more dependent on refilling purpose and unplanned purchases rather than bulk ordering. Due to the area limitation of Dark Stores, number of SKU's availability and baggage limits per, majority of the orders are below INR 600-700. A very small %age is contributing towards the order size greater than INR 1000.

Competitive Landscape

The industry is currently concentrated with presence of 7-8 players operating in the Quick Commerce industry in India. Fast Delivery, Price, Discounts & Offers, wide product assortment and availability & Ease of Payment are the major factors that influence the buying decision of the consumer. The major players include Swiggy Instamart, Blinkit and Zepto, together contributing more than 80% to the market. Companies with Large Product Assortment & Fastest Delivery are identified as clear leaders in the industry.

Future Outlook and Projection

The demand for the Quick Commerce is expected to expand with at a double digit of CAGR on the basis of GMV between FY’22P and FY’27F. Automation in the Dark Stores, Drone Technology, Voice Ordering, and Use of Electric Vehicles for Delivery is anticipated to drive the Quick Commerce Market in future. Demand Prediction and Customer Behaviour Analysis is crucial to ensure sufficient availability of the groceries and to ensure minimum degradation and stock-outs of these products.

Key Segments Covered:-

By Product Category

Fruits & Vegetables

Packed food & Beverages

Staples

Beauty & Personal Care

Others

By Region

Metro & Tier I

Tier II and below

By Business Model

Dark Store Platform

Third Party Delivery Platform

By Customer’s Gender

Male

Female

By Delivery Time

0-20 Minute

20-40 Minute

40-60 Minute

60-75 Minute

By Average Order Value

< INR 300

INR 300 – INR 600

INR 600 – INR 1,000

> INR 1000

Companies Covered:-

Swiggy Instamart

Blinkit

Zepto

Dunzo

BB Now

Ola Dash

BB Now

Flipkart Quick

Key Target Audience:-

Quick Commerce Companies

E-commerce Companies

E-Grocery Companies

Logistics Companies

Cold Chain Companies

Investors & Venture Capitalists

Time Period Captured in the Report:-

Historical Period: FY’22

Forecast Period: FY’23-FY’27F

Key Topics Covered in the Report:-

How is the Quick Commerce Market positioned in India?

India Quick Commerce Market Flowchart

Evolution of the Quick Commerce Industry

Target Addressable Audience for India Quick Commerce Market

Consumer Purchase Behavior

Channels available for shopping consumables

Comparison of E-Grocery and Quick Commerce Platform

Value Chain Model - Dark Store Delivery Platform

Supply Ecosystem and Challenges

Market Size and Segmentation

SWOT Analysis

Current Technologies Facilitating Quick Commerce Industry

Upcoming Technologies in Quick Commerce Industry

Investment and Funding in Quick Commerce Companies in India

Competitive Landscape – Cross Comparison of Major Players

Company Profiles

Case study & Analyst Recommendations

Research Methodology

For More Information on the research report, refer to below link:-

India Quick Commerce Market

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