How Quick Commerce is Changing Shopping in India: Insights from CLSA Report

How Quick Commerce is Changing Shopping in India: Insights from CLSA Report

How Quick Commerce is Changing Shopping in India: Insights from CLSA Report

Rapid urbanization in India is transforming how people buy their daily essentials, paving the way for quick commerce. According to a report by brokerage and investment group CLSA, quick commerce is growing rapidly due to lower infrastructure requirements, faster delivery times, and efficient price discovery options.

Dark stores used by quick commerce companies need only basic structures, and most deliveries are done on two-wheelers, requiring less parking space. Once an order is placed, packers in the dark store prepare the products, which are then delivered to the customer. While it started with groceries, quick commerce has expanded to multiple categories, though its core strength remains in grocery and staple products.

The report highlights that urban areas with higher migratory populations are quicker to adopt quick commerce due to limited connections with local retailers. Additionally, the increasing number of women in the workforce makes quick commerce a convenient option, offering a balance between convenience, assortment, and price that traditional kiranas struggle to match.

Quick commerce’s success depends on removing supply chain layers and enhancing efficiencies to reduce delivery costs. India’s fragmented retail market, with small unregulated retailers making up about 95% of the market, sets the stage for quick commerce’s rise. Quick commerce offers a wide range of products at competitive prices, delivered within 10-20 minutes, unlike neighborhood retail shops that stock limited selections and lack pricing transparency.

Currently, quick commerce is restricted to top cities. The report states that Blinkit’s parent company Zomato will benefit the most, while companies like Marico and Hindustan Unilever face risks as their distribution advantage erodes. Key players in quick commerce include Blinkit, Zepto, and Swiggy Instamart, which hold over 90% of the market share by revenue.

Doubts Revealed


Quick Commerce -: Quick commerce is a type of shopping where you can order things online and get them delivered very fast, usually within 10-20 minutes.

CLSA -: CLSA stands for Credit Lyonnais Securities Asia. It is a company that does research and gives advice about money and investments.

Rapid urbanization -: Rapid urbanization means that more and more people are moving to cities and the cities are growing quickly.

Blinkit -: Blinkit is a company in India that delivers groceries and other items to your home very quickly.

Zepto -: Zepto is another company in India that delivers groceries and other products to your home in just a few minutes.

Swiggy Instamart -: Swiggy Instamart is a service by Swiggy, a popular food delivery company in India, that delivers groceries and other items very fast.

Infrastructure needs -: Infrastructure needs refer to the basic physical and organizational structures needed for the operation of a service, like buildings, roads, and technology.

Consumer behavior -: Consumer behavior is how people decide to buy and use products and services.

Traditional retail -: Traditional retail means shopping in physical stores where you go and buy things yourself.

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