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Is ‘Q-Commerce’ the Next Retail Revolution in India?
Mayu Saini
6 min read
Is impatience the new consumer mantra?
Indian consumers are increasingly spoiled for choice, with many product deliveries available within five to 15 minutes. Now, Q-commerce (short for quick commerce) is changing the entire online retail concept in India. Over the past year, Q-commerce players have been moving from food and grocery delivery to personal care, beauty and fashion.
One of the three largest players in this space, Zepto, is preparing to go public. “Let’s Zepto it over” has become a common phrase in India, speaking to the service’s growing ubiquity. It’s expected to be the first Q-commerce player to file for IPO in the next two to three months. Gearing up for targets of $800 million to $1 billion, it is anticipated to be a game changer, having grown its market share very quickly and raised more than $1.35 billion in a five-month period in 2024.
“Let’s Blinkit,” too, has become common parlance. Blinkit’s offering of 10-to-15-minute delivery on products of all kinds has ensnared multitudes of shoppers across food, fashion and beauty. The largest company in the space also has the biggest market share, capturing 45 percent of the Q-commerce market followed by Zepto (29 percent) and Instamart (25 percent), according to brokerage company Motilal Oswal.
A recent report by HSBC Global Research revealed that this sector is expected to achieve a gross order value of $35 billion to $40 billion by 2027 or 2028. Many of the bigger e-commerce and delivery players—including Walmart-owned Flipkart and Myntra, Amazon and more—have jumped into the fray over the last six months, working closely with brands and smaller retailers to provide the same speedy delivery experience to consumers.
Myntra, for example, launched a dedicated Q-commerce beauty delivery service called M-Now in Bengaluru late last year, promising deliveries of cosmetics, fashion and lifestyle products within 30 minutes.
Competition in the space is heating up considerably. Notably, though, Zomato, the parent of Blinkit, and Swiggy, which owns Instamart, declared losses last week. Analysts told Sourcing Journal that the setbacks have been largely because of investments in logistics and growth for their respective Q-commerce arms.
“Quick commerce in fashion is not only possible but increasingly relevant as consumer expectations evolve. They continue to seek an enhanced experience in terms of speed, convenience, and accessibility of branded and trend-first lifestyle products across categories,” Myntra vice president of customer experience, contact center and supply chain Ashish Shukla told Sourcing Journal. Myntra is owned by Flipkart, which American big-box retailer Walmart acquired a majority stake in in 2018 for $16 billion.
“As we stand on the brink of this retail revolution, Q-commerce is not just a trend, but a testament to India’s adaptability and innovation. With its exponential growth and potential for further expansion, it’s clear that the future of retail is here,” Redseer Strategy Consultants associate partner Kushal Bhatnagar said. “Prepare for a world where shopping is redefined, and the future of retail arrives at your doorstep, faster than ever before. This is the dawn of Q-commerce—where every second counts and the future is now.”
In a report last year, Redseer predicted that existing users would spend 20 percent more on Q-commerce by March 2025, driven by “stronger trust and habit formation towards platforms, experimentation with newer propositions (sustainable products, health focus, cafe), and expenditure across non-essential categories such as beauty, home decor, gifting, and other general merchandise.”
In India, a big chunk of demand for speedy delivery services is driven by the premium gifting or festive occasions market.
“There is a growing demand for trendy fashion items and accessories to be delivered promptly. This shift is driven by the appeal of instant gratification, which aligns closely with the preferences of Millennials and Gen Z,” Myntra’s Shukla added. “These younger demographics value speed in their shopping experiences, expecting their needs to be met almost instantaneously without any trade-offs between fashion and speed. It’s about fashion that’s available now.”
With M-Now, the company aims to give shoppers access to international and domestic labels, leveraging the company’s technology and differentiated services across over 10,000 products. That selection, which includes products from Vero Moda, Mango, Tommy Hilfiger, Levi’s, Only, Jack & Jones, Huda Beauty, MAC, Bobbi Brown, Forest Essentials, Carolina Herrera, Armani Exchange and Fossil, is slated to grow to 100,000 products in the coming months, Shukla said.
“M-Now has received an overwhelming customer response to the offerings from numerous sought-after brands, including high-value styles, further reaffirming the trust in Myntra and the fine taste for fashion and lifestyle of Myntra’s customers. Since its launch, M-Now has gained organic momentum, with its popularity rising. We will continue to scale the proposition in terms of selection and speed,” he observed.
Both global and local brands are ramping up their Q-commerce capabilities, while Q-commerce providers are expanding their category options and brand relationships. “Dark stores”—small, conveniently located warehouses—have fueled their ability to reach consumers quickly, wherever they are.
As the financial year comes to a close in India in March, the race is on to open more dark stores and fuel the rise of the Q-commerce supply chain. According to industry sources, Blinkit has already opened 1,000 dark stores, demonstrating 40-percent growth since June last year. It’s aiming to double the number of dark stores in its network by the end of 2026.
Meanwhile, Zepto has reportedly opened 900 dark stores, while Instamart had more than 700 by the end of 2024 and Flipkart is expected to have more than 300 by the end of March.
“To cater to the growing demand, Q-commerce platforms are expected to add at least 500 new dark stores across the country, with a focus on the top 30-50 cities,” Redseer’s report noted. “Further, existing dark stores are expected to deliver higher throughputs, thereby resulting in a stronger economic profile for the platforms.”
An example of a firm that lost that race is Dunzo, an early entrant that was preparing to be publicly listed. Backed by Google, Reliance Retail had also acquired a stake in the firm, which focused on hyper-local deliveries in metropolitan cities like Bengaluru and Mumbai. The firm expanded rapidly, blowing through funds at an equal breakneck pace. By January, Dunzo was, well, done-zo.
As its strength grows, this fast-growing segment also has many critics. Road safety issues, the disenfranchisement of mom-and-pop stores (called kiranas), and the promotion of a culture of overconsumption are among detractors’ key complaints. There are also those who say that consumers should practice patience, at least beyond 15 minutes.
