The adoption of express or quick commerce in India is now fastest globally having surpassed economies like China, as per a recent report by consulting firm, Redseer. The report states that the quick commerce sector in India currently with a market size of $700 million is likely to grow 15x to reach $5.5 billion market value by 2025.
The data collated from RedSeer indicates that the quick commerce is currently 13 per cent of the $5.5 billion online grocery industry with the instant delivery trend having only picked up since 2020, after the COVID outbreak disrupted the e-commerce industry. The report notes that speed has become a key requirement of consumers in the e-grocery space which led to faster adoption of quick commerce in the country.
Quick commerce is becoming the next major segment as players realise the massive potential it has. Emerging as one of the fastest growing e-commerce models, quick commerce is fundamentally changing consumer purchase behavior and the grocery retail market on the whole by providing faster delivery options (in as little as ten minutes) as well as a more convenience-driven shopping experience, the report stated.
Globally, the quick commerce segment has seen a heightened venture capital deal activity having raised $13.43 billion in 2021.
"Quick commerce is becoming the next major segment as players realise the massive potential it has. Emerging as one of the fastest growing e-commerce models, quick commerce is fundamentally changing consumer purchase behavior and the grocery retail market on the whole by providing faster delivery options (in as little as ten minutes) as well as a more convenience-driven shopping experience," Abhishek Gupta, Engagement Manager, RedSeer, said.
The Total Addressable Market for quick commerce in India stands at $45 billion, and Metro and Tier 1 cities drive this market on the back of mid-high-income households. Over the last two years, quick commerce has seen a significant uptake in urban areas, with the services concentrated across major cities such as Bangalore, Chennai, and New Delhi
The report continued to shed light on the fact that this niche segment also boasts of a significantly higher Net Promoter Score (NPS) than e-grocery incumbents, suggesting that their customers are more likely to recommend them to a friend. One reason for this difference is that quick commerce platforms provide a faster shopping experience. They load online shopping carts faster, have fewer steps required to buy products, and provide a better shopping cart experience overall.
Quick commerce is satisfying the latent needs of its customers in a way that traditional commerce never could, the report said. It gives people exactly what they want, when they want it, without forcing them to wait days or weeks for delivery. The convenience and speed of quick commerce is a key reason why customers love it and why the segment is only bound to soar upwards, according to the RedSeer report.
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