The Story So Far
Quick commerce (Q-commerce) emerged during the COVID-19 lockdown, initially serving as a solution for online shopping during restrictions.
It has since evolved into a permanent fixture in urban India, changing the way people shop.
How Does Quick Commerce Function?
Rapid Delivery: Q-commerce ensures fast delivery (10-20 minutes) using a network of dark stores or distribution centers.
Dark Stores: These are warehouses dedicated only to fulfilling online orders without any in-person shopping.
Customer Data Utilization: Through mobile apps, platforms collect customer data to customize shopping experiences, manage inventory, and forecast demand for specific products.
What’s in it for Brands?
Brand Awareness: Quick commerce boosts brand visibility by reaching more consumers.
Cost-Effective Operations: Low-cost manpower and supply chain advantages (e.g., cheaper distribution of chilled products) benefit brands.
Market Growth: The Indian quick commerce market is valued at $3.34 billion and expected to grow to $9.95 billion by 2029, with a 76% year-on-year growth in FY 2024.
What About Traditional Retailers?
Anti-Competitive Practices: Traditional FMCG distributors accuse quick commerce platforms (Blinkit, Zepto, Swiggy Instamart) of predatory pricing and deep discounting, which harms competitors.
Data-Driven Pricing: Platforms are accused of using customer data for differential pricing based on location, device, or purchasing behavior.
Impact on Retailers: Many small retailers and distributors are facing losses or being driven out of business due to the competitive pressure from these platforms.
Call for Fair Competition: Retailers argue for a "level playing field" to allow both traditional and quick commerce platforms to co-exist.
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