Problem: Quick commerce has rapidly disrupted urban retail in India, growing 6X from $0.5Bn in FY22 to $3.3Bn in FY24 and projected to hit $9Bn by FY28. By promising 10-minute deliveries, it competes with Kirana stores and modern retail. However, profitability remains a challenge due to high logistics costs, low AOVs, and unsustainable unit economics. Solution: Quick commerce players are evolving by optimising dark store networks, charging delivery fees, and leveraging data-driven inventory management. Additionally, partnering with D2C brands helps increase margins through advertising revenue. Benefits: Despite scalability challenges in smaller towns, urban adoption is rising. Kirana stores will continue to coexist, leveraging their deep local knowledge and cost advantages. The future lies in balancing impulse purchases, profitability, and supply chain efficiency to sustain quick commerce growth.

Key Takeaways

From Kirana stores to '10-minute' deliveries, discover how dark stores and quick commerce are reshaping urban shopping, challenging Kiranas, and redefining convenience.

Beyond bricks in quick commerce with baskets, bags & blinks!

Beyond bricks in quick commerce with baskets, bags & blinks!

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Explore quick commerce beyond bricks. Learn strategies to optimise baskets, bags and blinks with insights from Vector Consulting Group. Read the full white paper here.

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