3 days ago
Structural cracks appear to complicate qcomm's quick surge in India
India's quick commerce market is expected to grow to Rs 1.5-1.7 lakh crore by 2027, driven largely by existing trade channels. While it creates significant employment, most jobs are gig roles with limited security. Pricing and adoption across categories present ongoing challenges for the sector's future.
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Market dynamics: Dominance and demand
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Quick commerce growth eating share from other channels
Uneven adoption across categories
India's quick commerce sector is projected to grow significantly, with estimates indicating it will reach Rs 1.5-1.7 lakh crore by 2027. This surge, however, is not without its challenges, ToI reported on June 6 based on a recent report by consulting firm findings highlight various structural issues that the industry faces as it rapidly essence, while India's quick commerce market is on the brink of substantial growth, it must address key issues related to pricing, job security, and uneven product adoption to sustain its quick commerce market has moved beyond just impulse purchases, now encompassing essential items such as rice, flour, and cooking oil. However, the report reveals that most of this demand is not fact, around 93% of sales in this sector are drawn from existing channels like modern trade, e-commerce, and local kirana shops, with only 6-8% representing new remains a crucial factor, as discounts in quick commerce average between 6-9%. This is notably lower than the 13-18% offered by traditional e-commerce and modern trade delivery and handling fees are considered, quick commerce pricing is competitive primarily against local kirana the rapid growth of quick commerce in major metropolitan and tier-2 cities, the adoption rate varies significantly across different product there has been a notable increase in the purchase of snacks, cold beverages, and gifts, items like fruits, vegetables, electronics, and personal care products have not seen similar growth. Many consumers still prefer in-store shopping for these categories due to the broader selection available commerce has become a significant driver of employment, generating approximately 62-64 jobs for every Rs 1 crore of monthly gross merchandise value. This figure is comparable to general trade and exceeds the 25-29 jobs created in e-commerce and 41-42 in modern it's important to note that over 70% of these jobs are last-mile delivery positions, typically occupied by gig workers who often lack job anticipates a 60% increase in gig hiring by 2025 as companies in the sector continue to expand.
