26 April 2023, Mumbai
The e-commerce industry has grown significantly worldwide, including in India where low computer costs and widespread internet usage have made it a viable option.
The Rise of Quick Commerce One sector that has benefited greatly from e-commerce in India is the textile industry, which accounts for 14% of the country's GDP.
Revolutionizing the Indian Apparel Industry
India is now experiencing the emergence of two new forms of quick commerce: the dark store model and neighborhood store-led Q-commerce.
From Dark Stores to Quick Commerce; Dark stores use high stock volumes to provide quick delivery within a 2-3 kilometer radius, while neighborhood store-led Q-commerce allows customers to purchase from local sellers, often within 3 km.
Examples of last-mile delivery businesses that follow the dark store model include Zepto, Zomato, Swiggy, and Dunzo, while Kiko Live is a quick commerce service provider that offers local vendors and customers the option to purchase from any product category covered by Q-commerce.
Impact on India's Apparel Market
The boom in India's Apparel Sector; The role Indian apparel market is pivotal as it contributes to the country's economy is remarkable and its size and scope can be gauged as it is projected to reach $82 billion by the year 2025, going up all the way from $66 billion in the year 2020, as per a report by the India Brand Equity Foundation and quick commerce by innovating Apparel Delivery/The Quick Commerce Revolution in India is predicted to transform India's, Apparel Market. Broadly speaking Quick commerce (Q-commerce) is consistently a growing trend in the retail industry per se, facilitating/enabling super-fast and convenient delivery of items to end customers.
So far as the apparel industry goes, Q-commerce rewriting economic theory helps control/regulate inventory enhancing/improving customer satisfaction quotient by getting quick access to new collections necessitated in the times fast-fashion rules and there is an argument to be made here that fashion too is perishable.
The article necessitates the need for an underlying technical analysis of the industry-building hypothesis of sorts/shows that implementing Q-commerce needs to be backed by let us say a robust logistics infrastructure, seamless integration of technology deployed, and speed to the market business approach/agile supply chain management.
The deeper issue is that the very success of Q-commerce in the apparel industry depends on retailers' ability to adapt to customer needs, choices, and evolving preferences.
Quick Commerce and ONDC; The Indian government's ONDC initiative is expected to speed up the pace at which customers trade with local suppliers and regional retailers. The Q-commerce sector is predicted to have a CAGR of close to 27% between FY 2022 and 2027, indicating enormous potential for growth in India's digital economy.
Quick Commerce
One trend that has emerged within the Q-commerce sector in India is the rise of quick commerce, which promises delivery within 10-20 minutes.
Delivering Fashion Faster; Companies like Dunzo, Zepto, and Blinkit offer speedy delivery services to attract consumers in major cities, with the market expected to grow 15 times by 2025, reaching a market size of close to $5.5 billion.
Millennials and Gen-Z consumers from mid to high-income households in metro and tier-1 cities are generating most of the demand due to the convenience and speed of these services.
However, concerns have been raised about the pressure on delivery executives to complete faster deliveries, potentially putting their lives at risk.
The Quick Commerce Craze
Experts predict that quick commerce will only take a 10-15% share of the overall grocery e-commerce market, with long-duration deliveries still dominating.
Businesses that are successful in this model tend to stock the most commonly purchased products, popular among Gen-Z and millennials, and understand local customer preferences.
Additional fees should be charged to ensure that the service is used only for necessities and not for impulse purchases. While quick commerce is the future of delivery services, careful consideration must be given to the potential risks and challenges associated with this model.
Convenient and seamless shopping experience drives the future; Q-commerce, or quick commerce, is gaining currency and consistent traction in the Indian apparel industry owing to its aptness to deliver products speedily and super-efficiently.
Given the rising e-commerce as a fundamental tailwind of the day and, dynamic consumer behavior, Q-commerce has a fundamental advantage in offering a convenient and seamless shopping experience in the consumer's overall purchase journey.
The article gives technical insights that strongly suggest that Q-commerce platforms with robust logistics capabilities and real-time inventory management systems will help players one-upmanship in this evolving fierce competitive landscape.
Very simply the order of the day is that given the ongoing trend, it is today's business imperative for apparel players to adapt and embrace this new mode of retail to stay relevant and competitive.
