Quick Commerce’s Impact on Urban Retail
Q-commerce, which delivers products within 10 to 30 minutes, is disrupting urban retail, particularly for frequently purchased consumables:
- Food, beverages, and confectionery: Sales declined for 52% of retailers.
- Personal care products: Sales fell for 47% of retailers.
- Household cleaning items: 33% decline reported.
Despite this, niche categories such as childcare, beauty, and wellness are less affected, as they involve more thoughtful purchasing decisions.
Brick-and-Mortar Retail Thrives in Non-Metro Cities
In contrast, tier 2 and tier 3 retailers remain largely unaffected by q-commerce, due to:
- High delivery costs caused by longer distances.
- Inefficient inventory management due to scattered demand.
Despite the aggressive expansion of q-commerce, physical retail continues to dominate in non-metro regions.
India’s Retail Market Growth Projection
- The Indian retail market is expected to grow to $1,892 billion by 2029-30, with a CAGR of 10.3%.
- E-commerce is the fastest-growing segment, projected to reach $220 billion with a 22.5% CAGR by 2029-30.
- Nearly 50% of Indian consumers prefer a hybrid shopping model, blending online and offline experiences.
Conclusion
While q-commerce disrupts urban retail, physical stores remain strong in smaller cities. The hybrid shopping trend suggests that both digital and traditional retail will coexist as the industry evolves.
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