Catering to the ever-evolving customer needs, the quick commerce model was born and raised over a pandemic. Today, companies deliver groceries and kitchen essentials to your doorstep in 10 minutes, something everyone wished for during the lockdown. Taking a cue from the need and busy lives in the cities, quick commerce is today delivering promises along with speed and convenience. As quick commerce, continues to evolve and adapt new features, we take a look at the business model and its future.
Warehouses
What makes this business model a success is its tight inventory management, logistics, and thorough execution. Dark stores as they call them are mini e-commerce distribution centers situated across the city. They store only a limited variety of groceries and keep a tighter control on perishable products like fruits, vegetables, and dairy. When customers place an order through one of these apps, the automated backend assigns the closest possible dark store and a delivery partner to pick up the order. The system then finds the quickest route to the location, similar to how food delivery apps operate.
Uniqueness
The evolving consumer behavior increasingly demands speed and convenience and quick commerce makes some comforting promises. Food delivery brands are also entering the sector, especially icecreams, which otherwise involved packing it with dry ice. Their decision to deliver even one item at a time also makes the business a popular choice among city dwellers.
Sustainability
While quick delivery makes the business model popular, it consumes a lot of resources, especially when delivering one item is one of their USPs. Automating the process can make the model efficient and reduce the rapid use of varying resources. With sustainability being the need of the hour, widely adopted and talked about by brands, a sustainable model will be more appealing to responsible Indian consumers.
Growth Predictions
India’s quick commerce market is expected to grow 10 to 15 times by 2025 making it a market size of $5.5 billion. And Tier I cities, where disposable income is the highest, are believed to drive 50% of this shift. Reportedly, at present, more than 20 million households use quick commerce models and the online consumable market in India is estimated to grow at a CAGR of 6% and reach US 1trillion by 2025. With high growth predictions, quick commerce is sure to become a widely used medium in the country.
It will cling strongly to advancements in new technologies like drones, voice ordering, electric vehicles, automated dark stores, sustainable updations, and more. As e-commerce grows, quick commerce will continue to grow as an integral part of it and continue to evolve.