Q-commerce seems to be a new player with on-demand delivery and e-grocery in a new faster form. Because of the continuous lockdowns, people around the globe have liked the idea of essential items being delivered on their doorstep, thus resulting in the increasing growth of the q-commerce industry. In this new model, the delivery time has been cut down from 3-5 days to a matter of minutes.
Market Share in India
Q-commerce has taken the market by storm. The increasing market share of Q-commerce based businesses is not hidden. A report by Red seer stated that the market value of Q-commerce would be projected by $5.3 Bn in gross merchandise value by 2025 in India. In India, Q Commerce is emerging as high demand and models to fulfill the needs of consumers. The market penetration of Q-commerce is estimated at around $0.3 billion in the year 2021.
Evolution of Q-commerce from E-commerce
The rise of Q-Commerce represents one of the next big steps in E-commerce that has shifted the interest of consumers towards online grocery shopping during the pandemic. Q-commerce develops through three generations. The first generation provides basic self-service through superstores mainly to meet demand by self-service then however as the demands changes there comes the second generation that is called E-commerce which involves faster delivery to meet the demand need and provides basic services with the involvement of big warehouses. Q-commerce has evolved as a 3rd generation category that has come out to be advanced and fast. Time is the most important factor that is seen in Q-commerce rather than E-commerce.
Q-commerce provides basic services with the help of local dark stores by keeping time consumption limited with the availability of minimal products. When brands are in a race of creating, high customer expectations they must ponder over the ability to fulfill the needs once the customer’s number increases, and for this purpose, commerce will get spike by meeting the high demands efficiently.
The targeted audience by Q-commerce was mainly the medicines and household items. The orders for delivering medicines grew 350 % since January 2021 by Dunzo. It has delivered more than 20,000 orders to hospitals between March and May.
Dunzo, Swiggy, Grofers, and Zepto are some of the players in this segment. Zepto as a Q commerce player raised market value by $60 million from investors and emerged as a leader in India. Zepto has seen a growth of almost 200% with monthly retention of 78%.
Revenue from Swiggy’s food delivery grew up to 56% from April to September. The growth of 91% was seen as compared to levels before the coronavirus and grocery revenues are up to 75% since March 2021. Revenues grew 91 % compared to levels before the coronavirus and grocery revenues are up 75 % since March 2021.
Competition among Market Players
When there are options, there is Competition. With the rise in Q-commerce business, there would also be a rise in market competition among the top players. Meeting customer demands in an efficient manner would be the first and foremost task among the players.
Q-commerce and Advertising
Q-commerce has evolved as a new thing in market places and the future of Q- commerce lies in consumer raising demands due to suitable options however it will take some time for users to get used to it in a near future. Digital advertising will play a big role in creating awareness from young generations to mass users on multiple platforms and help them try this new mode. For introducing the new stuff there should be a market education through advertising, free trial, variable coupons. However, the fierce competition would let only the top 3 players live in the market.
About MOCA Technology
MOCA being the largest OEM consolidator across the globe and an advertising innovator to help advertisers to make innovative formats & combinations for contextualized promotion is well aware of the fact that as for the coming years there is advancement seen in every corner so as in commerce sections too. MOCA has facilitated its marketers with E-commerce in the past and now is ready to keep them updated with Q commerce that has created a storm in the market.