While giving an insight regarding the quick commerce market, a recent report highlighted that the quick commerce market is projected to capture approximately USD 1.28 billion of Kirana sales by 2024, accounting for 21 per cent of total sales on these platforms.
Focusing On Speed and Convenience
Further adding, “Quick commerce’s focus on speed and convenience aligns with consumers’ needs for efficient, on-demand grocery shopping experiences plays a major role in the adoption of online grocery.”
It appears that around 75 percent of online grocery buyers have increased their unplanned purchases in the past six months, with a majority of them spending over Rs 400 per order, as per the findings shared in the report.
This study also shows that with an average order value significantly higher than traditional stores, consumers are increasingly opting for the convenience and speed offered by these platforms.
Moving ahead this report observed that the shift in this buying pattern is facilitated by the platforms’ ability as they are providing competitive pricing by eliminating multiple intermediaries that traditional retail relies upon.
But this has the adverse effect on the traditional kirana stores, which historically dominated the Indian grocery market, now they are facing an existential threat.
And why not as over 82 per cent of consumers have shifted at least one-fourth of their grocery spending from Kirana stores to quick commerce platforms, as per this report.
Further noting, “Quick commerce has witnessed an unprecedented pace of adoption, significantly influencing consumer behaviors across the retail ecosystem.”
Termed As A Fastest Growing Channel
But in future, it will have a much better prospects as “It is projected to experience a 74 per cent growth in 2024, positioning it as the fastest-growing channel during the 2023-28 forecast period with a 48 per cent compound annual growth rate (CAGR),” the report noted.
Initially these Quick commerce platforms commenced with the delivery of groceries and essential items.
But now they have expanded their horizon to include a diverse range of products.
Be it be electronics, clothing, cosmetics, household goods, medicines, pet supplies, books, sporting equipment, they offer everything.
Taking an interesting turn, almost 75 percent of online shoppers experienced a significant increase in unplanned purchases over the past six months, revealed in the report.
Adding, “The increased confidence in receiving grocery items within 10 minutes through quick commerce platforms has led to a surge in unplanned purchases.”
This recent study has derived insights from a survey of 3,000 adults across 10 Indian cities, in-depth interviews with industry stakeholders and experts, kirana shop owners, market data, broker reports and media reports, which was conducted during October 2024.
