Instant Style: Q-commerce boosts India's fashion retail shift

Instant Style: Q-commerce boosts India's fashion retail shift

India's quick commerce (Q-commerce) sector is rapidly evolving beyond its grocery-first origins to become one of the fastest-growing channels for fashion and lifestyle retail. What was once a platform for emergency milk, vegetables and household essentials is now becoming the destination for last-minute clothing purchases, innerwear, footwear and accessories, fundamentally altering consumer buying behaviour and forcing apparel brands to rethink inventory, logistics and merchandising.

As per Anand Rathi Research, India's overall retail market is valued at nearly $1.07 trillion and is expected to increase at 8-10 per cent annually between FY26 and FY31, taking the market to $1.5-1.6 trillion. Within this broader retail expansion, Q-commerce is emerging as one of the largest growth drivers.

Looking beyond groceries

The brokerage estimates that India's Q-commerce gross merchandise value (GMV) will grow from $11.3 billion in FY26 to nearly $60 billion by FY31, at a CAGR of 23.3 per cent. More significantly, the channel is expected to contribute 9-11 per cent of the total incremental growth generated across India's retail sector during the next five years.

A major contributor to this growth is the rapid expansion of non-grocery categories. While groceries continue to dominate order volumes, the share of non-grocery products including fashion, apparel, beauty and electronics is expected to rise from 29 per cent in FY26 to 39-44 per cent by FY31.

Fashion has become particularly attractive because of higher margins. Apparel products often generate gross margins between 20 to 50 per cent, far exceeding the low single-digit margins associated with grocery. As a result, clothing categories are helping improve the profit of dark stores while giving consumers access to wardrobe essentials within minutes.

Scale builds rapidly

The scale at which India's leading Q-commerce companies are operating show how quickly the market has matured. As per Anand Rathi Research, Blinkit is projected to process nearly 91.6 crore annual orders in FY26 through a network of 2,243 dark stores. Zepto is expected to handle about 64 crore orders across 1,139 stores, while Swiggy Instamart is projected to fulfil over 41 crore orders through approximately 950 dark stores. Collectively, the three platforms are expected to process almost 197 crore annual orders through over 4,300 dark stores. Daily order volumes have also reached impressive levels, with Blinkit averaging 3.1 million daily orders during Q4 of FY26, followed by Zepto at 2.8 million and Swiggy Instamart at 1.2 million, taking the combined industry total to around 7.1 million daily orders.

The report also highlights the economics behind the business. Blinkit and Swiggy Instamart generally require between 1,500 and 1,800 daily orders per dark store to achieve EBITDA breakeven, whereas Zepto's model requires approximately 3,000 daily orders, reflecting differences in operating strategies.

Brands move faster

The growing customer base has encouraged both established retailers and digital-first brands to expand their presence on rapid delivery platforms. Global sporting goods retailer Decathlon has already begun listing activewear, apparel and outdoor products across major Q-commerce platforms, recognising the demand for immediate availability.  At the same time, fashion-focused ecommerce companies are developing their own rapid delivery offerings. Myntra has increased its quick-delivery service, M-now, offering two-hour deliveries in select markets such as Bengaluru to retain customers who increasingly prioritise delivery speed alongside assortment.

Meanwhile, Anand Rathi Research estimates that monthly transacting users on Q-commerce platforms will increase from about 36-38 million in FY26 to 105-115 million by FY31. The customer base has already grown from just 5.6 million in FY23, underlining the rapid adoption of the format.

Competition has also intensified with Amazon, Flipkart Minutes and JioMart expanding their presence. However, the report suggests Blinkit continues to maintain a leadership position, benefiting from stronger operational efficiencies and positive adjusted EBITDA supported by its parent ecosystem.

Dollar's digital leap

The impact of quick commerce is already visible in the financial performance of apparel companies. Dollar Industries has emerged as one of the strongest examples of how legacy apparel manufacturers can use rapid delivery infrastructure. By integrating its supply chain with dark stores and positioning innerwear, socks and athleisure products as everyday essentials, the company recorded a 437 per cent year-on-year increase in revenue from Q-commerce during FY26.

The channel's contribution to Dollar Industries' overall revenue increased from just 0.5 per cent to 2.5 per cent within a year. Simultaneously, the company's non-traditional digital business grew by over 24 percent, demonstrating how instant delivery can offset slower growth in conventional retail channels.

Logistics reinvented

Selling apparel through Q-commerce presents operational complexities that differ substantially from grocery retail. Unlike packaged food products, clothing requires multiple stock keeping units (SKUs) covering different sizes, colours and fits. Managing this assortment within dark stores measuring only 2,000 to 5,000 sq. ft. demands highly sophisticated inventory planning.

Return management adds another layer of complexity, as fashion ecommerce has have seen return rates of 20-30 percent. Platforms are therefore investing heavily in automated warehouse management systems, predictive demand forecasting and neighbourhood-level inventory planning.

Demand patterns are becoming localised. Dark stores located near business districts are stocking formal shirts, office basics and hosiery, while residential neighbourhoods prioritise children's clothing, casualwear and loungewear. Automated picking systems guide warehouse staff to complete order processing within just a few minutes of receiving an order. Traditional value retailers are also adapting. Vishal Mega Mart has expanded its network to 723 stores across 485 cities, enabling it to support faster fulfilment for its growing base of more than 163 million registered loyalty customers.

A new buying habit

Experts believe the biggest transformation is taking place in consumer behaviour rather than logistics. Consumers view apparel purchases in the same way they view grocery purchases driven by immediate need rather than planned shopping. Whether replacing a shirt before an important meeting or ordering accessories ahead of a social event, convenience is becoming as important as price.

This behavioural change is also reshaping advertising. Q-commerce platforms have evolved into high-intent marketing channels where brands can influence purchase decisions at the moment consumers are ready to buy. Anand Rathi Research estimates that these platforms collectively generate over Rs 3,000 crore in annual advertising revenue, prompting apparel companies to shift marketing budgets from conventional digital advertising towards sponsored placements within Q-commerce apps.

As delivery speeds become a competitive differentiator rather than a value-added service, India's fashion industry is entering a new phase where inventory proximity, predictive merchandising and fulfilment efficiency could become just as important as product design and pricing. The 10-minute wardrobe may have started as a convenience, but it is quickly becoming a permanent feature of India's retail landscape.

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