Quick commerce (q-commerce), also commonly referred to as 'on-demand delivery' and 'e-grocery', is quickly becoming a favorite tool for time-scarce city dwellers. The five main factors driving the rapid rise of q-commerce are busy lifestyles, urbanisation, smaller households, COVID-19, and ageing population, according to GlobalData, a leading data and analytics company.
GlobalData's latest report, 'Q-Commerce - ForeSights', reveals that increased competition by delivery aggregators has influenced consumer expectations of speed. Convenience has become a valued commodity for time-poor consumers, with many people willing to pay a higher price for on-demand services as the next level of the customer experience.
Carmen Bryan, Consumer Analyst at GlobalData, comments: "As consumers experienced stringent lockdown measures, they turned to digital solutions such as socializing via video and shopping for goods online. Pair this with more than half* of global consumers who are concerned about visiting stores because of COVID-19, and we can see the ideal recipe for the robust growth in q-commerce."
One company that has benefited from the robust growth in q-commerce is Delivery Hero, which claims to offer consumers on-demand delivery via its 'Dmarts' (delivery only grocery stores) within 30 minutes. Similarly, Glovo successfully differentiated itself from its competitors by providing consumers with 24-hour service ranging from food delivery, groceries, and pharmaceuticals that are delivered to their doorsteps within 30 minutes.
Bryan continues: "The key takeaways from these emerging players boils down to speed, variety of goods, and accessibility. The customer experience will be imperative to players' survival, particularly as the market becomes over saturated with new entries and retail partnerships. On the one hand, this could mean more promotions and competitive pricing, which will boost consumer power; however, it could also increase a sense of 'consumer entitlement', whereby minor technical difficulties or hiccups leave people feeling frustrated - resulting in a migration to competitors."
The future of q-commerce will include adopting more sustainable practices and investing in innovative technology to optimize the speed of delivery times.
Bryan adds: "The lack of overheads in operating a q-commerce business translates into the possibility of even small or medium-sized enterprises entering the market. Local businesses such as cafés, grocery stores, pharmacies, and corner stores will benefit from consumers purchasing more locally to accomplish super-fast deliveries. In addition, to cater to urbanized populations, using two-wheeled vehicles, such as cycles or motorbikes, is more practical and environmentally friendly than vans or cars."