/dhanam-english/media/media_files/SxQCkrNaKpm3pcgB6TXO.png)
Three-fold growth in two years for quick commerce in India (Pic: Mint)
The quick commerce industry in India has registered a sales growth of over 280 percent in the last two years, reported the news agency ANI, quoting a Chryseum report, a financial services firm.
The Gross Merchandise Value (GMV) of India's quick commerce industry increased to $3.3 billion in the financial year 2023-24, from $500 million in the financial year 2021-22, registering a hike of nearly 280 perent.
The quick commerce industry refers to the fast delivery of small orders; this industry is growing at a faster pace than the traditional e-commerce business.
India's e-commerce sector is growing at an annual rate of 14 percent. The quick commerce industry grew 73 percent annually in the financial year 2023-24. This shows a shift in consumer behaviour favouring faster and more convenient delivery options.
Vast potential for quick commerce
Indian quick commerce market is valued at $3.34 billion, and is expected to reach $9.95 billion by 2029, with a compound annual growth rate (CAGR) of more than 4.5 percent.
According to the Chryseum report, despite the rapid growth witnessed in the quick commerce sector, it remains relatively untapped with a rate of penetration of 7 percent of the total addressable market, valued at $45 billion. This shows an opportunity for further expansion, the report noted.
To tap this potential, quick commerce platforms are increasingly partnering with manufacturers for direct sourcing, bypassing the traditional distributor networks. The strategy allows platforms to streamline operations, reduce costs and offer more competitive pricing to the consumers.
Technology changing too
The technology infrastructure is designed to ensure continuous improvements in the process of operations, increasing agility and speed across the value chain. The innovations are helping these platforms to deliver faster and more efficiently meeting the growing demand for instant delivery in India.
The industry continues to evolve and experts predict that the quick commerce industry will play a major role in India's retail landscape, the agency said referencing the study.
(By arrangement with livemint.com)
