Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 14 pages
Data source: Published sources
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Abstract
Quick commerce or Q-Commerce had come up with a unique business model where consumers got deliveries within 15-30 minutes of placing an order. It focused mainly on small quantities of goods like groceries, stationery, over-the-counter medicines etc. The traditional warehouses were replaced with micro warehouses near the point of delivery. Dunzo, Swiggy Instamart, Blinkit and Zepto were the largest players in the Indian Q-Commerce market. It was predicted that the Q-Commerce business in India would grow from USD700 million in 2023 to USD5.5 billion by 2025. Q-Commerce however had to overcome the challenges of strong competition, legal barriers, and logistical problems. The high cost of last mile delivery also needed to be tackled to improve profitability. Players in the Q-Commerce market wanted to foray beyond the FMCG market to attract and retain customers. Q-Commerce was gradually being embraced by all age groups thus showing that there was a gradual shift in consumer behaviour and buying patterns due to convenience, price and easy accessibility to a wide product assortment. Though Q-Commerce was popular among the urban population, companies would need to be cautious while entering newer markets. Would Q-commerce be a game changer in the retail market of India?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2024.Geographical setting
Region:
Asia
Country:
India
About
Abstract
Quick commerce or Q-Commerce had come up with a unique business model where consumers got deliveries within 15-30 minutes of placing an order. It focused mainly on small quantities of goods like groceries, stationery, over-the-counter medicines etc. The traditional warehouses were replaced with micro warehouses near the point of delivery. Dunzo, Swiggy Instamart, Blinkit and Zepto were the largest players in the Indian Q-Commerce market. It was predicted that the Q-Commerce business in India would grow from USD700 million in 2023 to USD5.5 billion by 2025. Q-Commerce however had to overcome the challenges of strong competition, legal barriers, and logistical problems. The high cost of last mile delivery also needed to be tackled to improve profitability. Players in the Q-Commerce market wanted to foray beyond the FMCG market to attract and retain customers. Q-Commerce was gradually being embraced by all age groups thus showing that there was a gradual shift in consumer behaviour and buying patterns due to convenience, price and easy accessibility to a wide product assortment. Though Q-Commerce was popular among the urban population, companies would need to be cautious while entering newer markets. Would Q-commerce be a game changer in the retail market of India?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2024.Geographical setting
Region:
Asia
Country:
India