(MENAFN- Live Mint) The quick commerce industry in India has witnessed sales over 280 per cent growth in the last two years, reported the news agency ANI, quoting a Chryseum report, a financial services firm, on Saturday, September 28.
The Gross Merchandise Value (GMV) of India's quick Commerce industry increased to $3.3 billion in the financial year 2023-24, compared to $500 million in the financial year 2021-22, registering a nearly 280 per cent hike, according to the report.
Also Read | Why Delhivery's taking the long road in the quick-commerce era
The quick commerce industry refers to the fast delivery of small orders within a limited time frame; this industry is growing at a faster pace than the traditional e-commerce business, according to the agency report.
India's e-commerce sector is registering an annual growth rate of 14 per cent. The quick commerce industry has grown at 73 per cent annually in the financial year 2023-24, as per the report. This shows a shift in consumer behaviour towards faster and more convenient delivery options.
Indian quick commerce market is valued at $3.34 billion in 2024, and is expected to reach $9.95 billion by 2029, a compound annual growth rate (CAGR) of more than 4.5 per cent over the period, said the agency citing the report.
Also Read | 31% of urban Indians use quick commerce for primary grocery shopping: report
“The Quick Commerce Industry in India Market size is estimated at USD 3.34 billion in 2024, and is expected to reach USD 9.95 billion by 2029,” quoted the agency citing the report.
Growth of Quick Commerce
According to the report, despite the rapid growth witnessed in the sector , it remains relatively untapped with a rate of penetration of 7 per cent of the total addressable market, valued at $45 billion. This shows an area of opportunity for further expansion, with quick commerce crossing the market size of food delivery , said the agency.
The report also stated to capitalize on this potential. Quick commerce platforms are partnering more with manufacturers for direct sourcing, bypassing traditional distributor networks, according to the report.
Also Read | India plans to build 50 e-commerce export hubs
The strategy allows platforms to streamline operations, reduce costs and offer more competitive pricing to the consumers, as per the report.
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, as per the report.
The industry continues to evolve and experts predict that the quick commerce industry will play a major role in India's retail landscape, according to the agency report.
LiveMint couldn't independently verify the report.
MENAFN28092024007365015876ID1108725114
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.