Q-commerce is the sachet-isation of shopping – ET BrandEquity

India is one of the fastest growing quick commerce markets in the world. E-commerce itself is seen as convenient globally but Q-commerce is giving E-commerce a run for their money in India. I see some cultural reasons and infrastructure reasons for Q-commerce flourishing.

Indians are impatient. Even when they order on E-commerce, Indians expect delivery within 2 hours. On top of it, Indians return 37 per cent of what they order, second only to the UAE. Our time gap between desire and consumption is shortening. We show cultural impatience in several ways – jumping traffic lights, jumping the queue, turning back in the middle of a road if we see slow traffic, finding a connection to hasten outcomes and greasing palms to move things. Indians also look for a double tick on Whatsapp the most.

Indians are forgetful. In a recent survey done by a ride sharing platform, Indians regularly forgot their keys, wallets, mobile phones and sunglasses in the cab. Delhi is the most forgetful city and Indians tend to forget more between 7 pm and 9 pm. Indians also tend to be more forgetful in and around the festive season. Every household forgets to stock what it needs. Q-commerce helps Indians catch the occasion to gift, without embarrassment.

Indians love discounts. On an average 80 per cent or more Indians want a discount every time they shop. This is one of the highest in the world. Consumers in India, Egypt and Turkey are the top three bargainers. Bargaining at one level is about managing your budget and at another level is showing how you outsmarted the seller. Everything on Q-commerce is about bargains.

Weather is the biggest ally of Q-commerce. Every rainy day, every hot day ensures that households stay indoors and order on Q-commerce. Dust and pollution concerns in every crowded city are enabling people to shop from home. In most cities, public transport is not reliable. This will only get worse this decade and hence an opportunity for Q-commerce.

India has a high population density in all its big cities. This enables the ability to serve orders quickly and effectively. Mumbai is at No 5 on the global list of densely populated cities, Delhi, Kolkata, Chennai, Bangalore are not far off. Amongst the Tier 2 cities Asansol and Muzaffarnagar are closer to Delhi.

An affluent India is experimenting more with fruits, branded food etc.. This individual choice is driving the housewife to Q-commerce. A friend’s 6-year-old daughter came to stay with us for a week. One day she wanted cherries for breakfast, another day was reserved for pancakes, the third day for a dosa and so on. When each family member has a different choice, then the choice and convenience of Q-commerce is a winner. The Indian housewife has always preferred fresh over packed food and Q-commerce allows her to choose fruits and vegetables fresh. More working women are also leading to higher usage of Q-commerce as they cut their retail visits only for meaningful purchases.

The Indian housewife is productivity conscious. Q-commerce helps her in not loading up the pantry and buying only when she needs something. So, Q-commerce is productivity of space and productivity of consumption rolled into one.

All these factors do not automatically mean a profitable business. The business has scale but will be challenged on profitability. Attrition of delivery agents is 20 per cent every month. That effectively means, you have a new set of delivery agents every five months!! The average cost to ship a kg on the road in India is more than INR 60. The average bill value is about INR 600, so finding a profitable business model will be a recurring theme.

That said, Q-commerce is the sachet-isation of shopping.