India’s quick commerce sector is heating up like never before, with new and established players capitalising on the rising demand for instant deliveries, particularly in metro areas. What once began with grocery essentials has now diversified into electronics, fashion, beauty, and even food. One of the most intriguing entrants in the quick commerce arena is Nykaa, the beauty and fashion retailer, which has recently launched a 10-minute delivery pilot in Borivali, Mumbai.
With this strategic move, Nykaa has joined the elite list of major players in the quick commerce sector, including Zomato’s Blinkit, Swiggy Instamart, Zepto, and Tata’s bigbasket. These companies are not just competitors; they are all vying to redefine the convenience economy and set new standards for what customers can expect in terms of delivery speed and product variety.
It’s important to note that Nykaa’s entry into the quick commerce space is driven by more than just fear of missing out (FOMO). It’s a strategic decision informed by the remarkable demand for beauty products delivered within minutes.
As beauty has emerged as a top-grossing category on quick delivery platforms, Nykaa aims to capitalize on this significant opportunity. To enhance its position in the market, the company is also planning to expand its quick delivery service under a separate brand name.
Nykaa’s 10-minute delivery service can also be seen as a threat to established platforms like Blinkit, Instamart, BigBasket, and Zepto, as sales of beauty products on these competing platforms will take a hit. With the allure of rapid delivery, an increasing number of shoppers may now prefer Nykaa’s platform over its competitors, potentially reshaping the market dynamics.
In this evolving landscape, while horizontal quick commerce platforms like Blinkit and Zepto currently dominate grocery delivery, industry insiders believe there’s ample room for vertical platforms that specialize in specific categories. Beauty, fashion, and even home decor are becoming key areas where platforms like Nykaa and Myntra can leverage their expertise and optimize their supply chain networks to gain a competitive edge.
Food Delivery in 10 Mins: A Risky Proposition?
Now, the concept of getting groceries and other products delivered in 10-20 minutes can still be understood, considering it relies on dark stores that facilitate rapid access. However, the notion of food delivery within 10 or even 30 minutes seems almost unbelievable and raises concerns about its practicality.
Just last week, Swiggy launched its 10-minute food delivery service, Bolt, which raised many eyebrows. This move has not been well-received by consumers and industry experts, as it raises questions not only about food quality but also about the safety of delivery guys rushing to meet these tight deadlines.
In response to Swiggy’s new service, rival Zomato is also planning to introduce its 10-minute food delivery option. However, this will be limited to certain food items, such as samosas, puffs, and cream rolls.
Zomato’s founder, Deepinder Goyal, believes food delivery in 10 minutes could be the next big thing in the quick commerce space, targeting those who currently lack access to canteen-style food. He envisions this as an opportunity to create a new market and stimulate additional demand, potentially serving as a significant growth engine for restaurants.
Meanwhile, Licious, a direct-to-consumer meat brand, is another exciting player making waves in India’s quick commerce sector. The company has recently launched a pilot program to deliver ready-to-eat non-veg food items in Gurgaon within 30 minutes. This decision follows its successful track record of delivering meat products within one to two hours in several metro cities, where it has consistently received positive feedback from customers.
Changing Consumer Habits
One of the core reasons quick commerce is thriving in India is the shift in consumer behaviour.
Since the Covid-19 pandemic, people, mostly in urban areas, have increasingly preferred online ordering for everything from groceries to food and electronics. This evolving mindset reflects not just a preference for convenience but also a broader cultural shift toward digital solutions in everyday life. This trend is further fueled by increasing buying power, which drives the demand for quick orders and fast deliveries.
Data shows that the average frequency of grocery and household essentials purchases in India is 2.2 times a week, significantly higher than in Western markets, where it averages 2.4 times a month. This difference highlights a fundamental aspect of the Indian market: smaller basket sizes and more frequent purchases make it an ideal environment for quick commerce to flourish.
In line with this shift, Myntra and Nykaa’s same-day delivery service, currently available in four metros, is another example of how companies are adapting to these changing expectations.
A significant 10-15% of Nykaa’s orders in these cities are delivered on the same day, while next-day deliveries account for 85-90% of the total orders. In order to enhance its same-day and next-day delivery rate to 65% in the top 12 cities and 60% in the top 110 cities, Nykaa is actively focusing on improving supply chain efficiency without making major investments.
Moreover, the quick delivery of beauty products extends beyond Nykaa. Varun Alagh, CEO of Mamaearth, emphasised the crucial role of quick commerce in his company’s strategy, stating that it is the fastest-growing sub-segment within its online commerce channel.
In August, Mamaearth reported that over 10% of its online revenue came from quick commerce sales, primarily from the top 10 cities. This shift indicates that even established brands are prioritising speed to meet the demands of urban consumers.
In conclusion, the quick commerce sector in India is more than just a passing trend; it’s a dynamic race to capture the hearts (and wallets) of the country’s urban consumers. As more companies jump on board, the competition will only intensify, pushing the boundaries of speed and efficiency. Nykaa’s bold move into the 10-minute delivery space, along with other players’ rapid expansions, shows that the sector is here to stay. The real question now is, who will win the race? Only time will tell.
