Factors influencing quick commerce in India

Abstract

India is one of the largest retail markets in the world, with a 793 billion USD market size as of 2021. It contributes to I 0% of GDP and 8% of employment, playing a significant role in the livelihoods of millions of people. COVTD has significantly changed consumer retail buying behaviour and preferences, which is reflected in the change of mindset from price consciousness to value quality and convenience; from planned and refrained purchase to impulse buying and indulgence; from traditional stores to e-commerce through accelerated mobile and digital adoption. This is further validated by the e-commerce CAGR projections of 19% over the next five years, which is more than double the 9% CAGR projected for the retail sector in India. Quick commerce is the latest business model emerging from the e-commerce channel, enabling customers to get their online orders delivered within 10 to 20 minutes of placing the order. The quick commerce market started with new-age companies like Zomatobacked Blinkit, Swiggy Instamart, and Zepto. Still, traditional companies like Reliance (Dunzo) and Tata (Big basket now) have also established their presence recently in this segment. Quick commerce clocked in 20% - 25% more sales than e-commerce over the last year and is expected to reach 5 billion USD value in 2025 from the current 0.3 billion USD. We would like to understand, through the CCS coursework, the factors influencing the shift in consumer preferences towards quick commerce.