The Fast and the Furious: The Rise of Quick Commerce in Urban India
In today’s fast-paced world, consumers in Urban India, also known as India 1.0, are constantly on the go. They want everything instantly, and if possible, they wanted it yesterday. This need for speed has given rise to the concept of Quick Commerce, where companies are striving to deliver products in as little as 10 minutes, with some even working on developing time machines to meet these demands.
These consumers are not just fast, they are also furious. They expect their deliveries to be on time, and any delay, even by a few minutes, can lead to frustration and complaints. It’s interesting to note that while these consumers spend hours on social media platforms like Reels, they value every minute when it comes to receiving their orders.
When it comes to grocery shopping, urban consumers want it all – a wide variety of products, top-notch quality, maximum convenience, and competitive prices. They expect the best of everything, customized to their preferences, whether it’s gluten-free, sugar-free, or accompanied by a personalized thank you card. Quick Commerce caters to these consumers who prioritize convenience and comfort, especially in metro cities where the per capita income is relatively high.
Quick Commerce has become an essential service for urban Tier 1 consumers, but for the majority of the population, it remains a luxury. The leapfrog from traditional convenience stores and vending machines to Quick Commerce has been more pronounced in India compared to developed countries like Japan and Southeast Asia. In these regions, convenience stores have long been the go-to option for quick purchases, offering a range of products from snacks to ready-to-eat meals. However, in Indian metros, the lack of established convenience chains has paved the way for Quick Commerce to thrive.
One of the key aspects of Quick Commerce is its focus on premium products and modern retail assortments. It caters to customers who prefer high-quality goods and are willing to pay a premium for convenience. While traditional value-seeking customers still rely on local kirana stores for their monthly or weekly shopping, Quick Commerce targets a more upscale market segment.
In contrast, Tier 2.0 India represents consumers in smaller towns and villages who are time-rich but money-poor. These consumers prioritize value and are adept at making the most of their limited resources. For them, quick shopping means visiting the nearby kirana store or borrowing essentials from neighbors. Impulse buying in these regions is centered around pocket-sized items, with a significant portion of sales coming from low-priced products like snacks, shampoo sachets, and affordable beverages.
The concept of round-the-clock shopping, common in urban areas, is a rarity in smaller towns and rural India. While 24-hour stores may exist in some urban neighborhoods, most regions shut down early in the evening. Discretionary spending plays a significant role in the shopping habits of consumers in small towns, who prefer to personally select and purchase their essentials from local stores. With basket sizes ranging from Rs. 100 to Rs. 200 for essential items, the economics of delivery become challenging for Quick Commerce in these regions.
The retail landscape in India is diverse, with consumers utilizing multiple channels to meet their varying needs. While Quick Commerce has found success in certain pockets of metro cities, its appeal in smaller towns remains limited. However, as incomes rise and consumer preferences evolve, there is potential for Quick Commerce to expand its reach. Hybrid omni-channel models and organized retail with digital options could bridge the gap between urban and rural markets, offering a more tailored shopping experience for all consumers.
In conclusion, Quick Commerce is reshaping the retail landscape in Urban India, catering to the fast-paced lifestyle of consumers who value convenience and premium products. While the concept may not be as prevalent in smaller towns and rural areas, the evolving retail ecosystem and changing consumer behaviors indicate potential for growth and adaptation in the future.