Quick commerce expands to electronics: Smartphones to be delivered in mins

Swiggy Instamart, Zomato's Blinkit, BigBasket's BBNow, and Zepto may begin delivering smartphones and kitchen appliances by November this year

Quick commerce platforms like Swiggy Instamart, Zomato’s Blinkit, BigBasket’s BBNow, and Zepto are expanding their rapid delivery services to include electronic products and white goods as early as Diwali this year.

Industry executives report that brands are eager to partner with these platforms, driven by the model’s success in fast-moving consumer goods (FMCG), according to a report by The Economic Times.

As early as October 29, consumers could potentially receive a new smartphone or kitchen appliance at their doorstep within 10 minutes. Diwali falls on November 1 this year, with festivities stretching from October 29 to November 3.

What is quick commerce?

Quick commerce (q-commerce) is a business model that promises delivery of goods within 10-30 minutes of ordering. Also known as ‘on-demand delivery,’ q-commerce focuses on smaller quantities of high-demand items like groceries, stationeries, and over-the-counter medicines.

This mode of delivery became especially popular in 2020, when the Covid-19 pandemic led to supply chain disruptions.

How does quick commerce work?

Unlike traditional warehouses on the outskirts, q-commerce relies on micro-warehouses or ‘dark stores’ situated near delivery points, typically within urban areas. These ventures restrict their stock to around 2,000 high-demand items, aiming to be the biggest local convenience store rather than emulating large retailers like BigBazaar or Walmart. Dark stores, located near apartment complexes, cater to a radius of 2 km, ensuring rapid delivery.

Unlike e-commerce, which involves the online purchase or sale of goods with delivery times spanning several days, q-commerce aims to deliver within 30 minutes to an hour, significantly enhancing customer convenience.

What are the benefits of quick commerce?

Quick commerce has transformed the retail landscape by providing unprecedented speed, convenience, and efficiency in the delivery of goods and services, ultimately enhancing the shopping experience for consumers in India. The benefits include:

1. Speed: Q-commerce companies deliver goods much faster than conventional retail outlets.

2. Guaranteed availability: Investments in AI and real-time inventory monitoring ensure items are readily available.

3. 24-hour operation: Dark stores, depending on location, can operate round-the-clock, unlike traditional brick-and-mortar retailers.

4. Reduced environmental impact: By consolidating deliveries and optimising routes, Q-commerce reduce the environmental footprint associated with transportation by using electric vehicles

Growing channel for FMCG

Quick commerce has become a key channel for FMCG companies such as Hindustan Unilever, Dabur, Adani Wilmar, and Parle Products, contributing to 35 per cent of their ecommerce sales in the previous financial year.

Is it feasible to sell electronics through quick-commerce?

Currently, BlinkIt, Zepto, BigBasket, and Swiggy offer delivery for small daily-use electronics such as earbuds, smartwatches, Bluetooth speakers, and kitchen appliances.

Last year, BlinkIt ran a pilot program selling Apple’s iPhone 15 for a limited period in Delhi-NCR, Mumbai, and Pune, demonstrating the potential for high-value electronics in the quick commerce model. The platform offered no-cost EMI and low-cost EMI payment options, and even cashback of up to Rs 5,000 on eligible HDFC cards. The platform, owned by Zomato, had entered into a strategic agreement with Apple reseller Unicorn to execute this offer.

This summer, electrical products maker Havells also tested quick delivery for fans and air-coolers, showing the model’s feasibility for larger items, ET reported.

Additionally, Boat, a popular audio and wearables brand, has already begun retailing five of its top-selling products through BlinkIt and Zepto with plans to expand to soundbars.

Quick commerce electronics range may be limited

BigBasket plans to deliver most electronic products within 15 minutes and larger appliances such as refrigerators, air-conditioners, and washing machines within 30-45 minutes. BigBasket is also venturing into smartphone sales through a partnership with Tata's electronics retail chain, Croma.

While the range of electronic products available through quick commerce will not be as extensive as those on platforms like Flipkart or Amazon, the focus will be on top-selling models based on customer ratings. This approach helps manage the storage needs for larger items, which require significant warehousing space and four-wheeler delivery.

Potential challenges to quick commerce platforms

While the potential for the market is immense, there will be a challenge in offering hands-on experience and services such as exchange offers and EMI options, which are key for buyers looking to purchase smartphones and larger electronic items. If quick commerce platforms can address these needs, smartphones, especially, could become a substantial revenue stream.