In India, quick commerce has grown remarkably, with big businesses like Swiggy Instamart, Zepto, and Blinkit (acquired by Zomato) making notable progress. These businesses have effectively used tactics including advertising expensive goods, simplifying discount plans, growing their network of dark stores, and maximising brand portfolios. Industry heavyweights like Amazon, Flipkart, and Myntra have joined the battle in reaction to the spike in demand, hoping to provide clients with lightning-fast delivery.
Fast delivery services like Flipkart's "Minutes" and Amazon's "Tez," which is scheduled to debut early next year, are prime examples of how ecommerce is becoming more focused on speed. With the introduction of "magicNOW," the hyper-local ecommerce company Magic has entered the meal delivery market.
Quick commerce businesses are investing a lot of money in marketing and advertising to strengthen their positions in this expanding sector. For example, Zepto increased its advertising budget from Rs 215.82 crore to an astounding Rs 303 crore in fiscal year 2024. With an average of Rs 83 crore per month, the company's advertising expenditures have contributed to the fast commerce sector's annualised ad revenue surpassing Rs 1,000 crore.
Blinkit, which is owned by Zomato, has increased its marketing budget as well, spending Rs 191 crore in 2024. In the current fiscal year, the company expects its advertising revenue to cross Rs 1,000 crore, which has already surpassed Rs 400 crore.
Although Swiggy Instamart's financials are not made public individually, PrivateCircle Research estimates that Swiggy, the company's parent, spent Rs 1,850 crore on advertising and promotions in 2024. The creator of the company has placed a strong emphasis on attempts to raise the share of advertising revenue in total revenue.
Over the past year, BigBasket's rapid delivery division, BBNow, which has been in business for about two and a half years, has switched its emphasis from scheduled deliveries to a quicker delivery strategy. In 2023, the company spent Rs 385.12 crore on advertisements and promotions, which reflected the fiercer competition in this quickly changing market.
In fiscal year 2025, the fast commerce market in India is expected to increase by 75–85 per cent, reaching a gross merchandise value (GMV) of $6 billion, according to Redseer Strategy Consultants. Increased consumer trust and the increased habitual use of these platforms are predicted to cause a 20 per cent rise in expenditure by Monthly Transacting Users (MTUs).
_20241224104546_original_image_43.webp)
_20240720151751_original_image_12.webp)
