The rapid rise of quick commerce (or q-commerce) platforms in India presents significant potential for the beauty industry, marking a shift in consumer behavior and shopping preferences. These apps, which promise delivery within just 10 to 20 minutes, have gained immense popularity, especially in urban areas. As experts suggest, this burgeoning market could see substantial growth, with the beauty segment alone anticipated to experience 1.5 times higher annual growth compared to personal care products.
Prisha Nagpal, a college student living in central Delhi, exemplifies the changing shopping habits among young consumers. She expressed her preference for q-commerce apps like Zepto and Blinkit over traditional e-commerce platforms, noting, “Amazon used to be the fastest way for me to get a lot of this stuff, but it still takes two days even with Prime.” For her, the immediate access to cosmetics and toiletries through quick commerce is a game changer. Spending around 3,000 to 4,000 rupees ($35-$45) per month on beauty products, she highlights the urgency driving her switch. “Plus there are a lot of deals on these apps,” she added, further underlining the competitive pricing strategy of q-commerce apps.
According to a NielsenIQ survey, around 31 percent of urban online shoppers in India use q-commerce platforms for groceries and other essentials. The convenience and experience these platforms provide have significantly improved, thanks to their strategic use of ‘dark stores’ or warehouses located close to urban centers. This allows them to fulfil orders swiftly, catering to the increasing demand for immediate delivery.
Beauty brands both established and new are now flocking to these platforms. Q-commerce app Zepto features a wide range of products from household names like L’Oréal and Lakmé to newer brands such as Mamaearth and Sugar Cosmetics. The rival app Blinkit reported an impressive annual revenue growth, surpassing 2,300 crore rupees ($274 million) this year, indicative of the untapped potential the beauty sector holds in this rapidly evolving market.
Samir Krishan Modi, founder of Colorbar Cosmetics, emphasizes that the rise of q-commerce is not just a passing trend but rather a clear indication of a shift in consumer behavior. He explained that younger audiences specifically value fast delivery and the simplicity of the ordering process. Quick commerce aligns perfectly with the beauty sector’s nature, where consumers often find it inconvenient to make physical trips for single-product purchases.
Despite its increasing acceptance, q-commerce is relatively new in India, gaining traction primarily during the pandemic. Early movers such as Dunzo paved the way for the likes of Zepto and Blinkit. Notably, the demand for quick commerce in India is fueled by demographic factors like high population density and urban infrastructure challenges, which further emphasize the need for rapid delivery.
In a broader perspective, the quick commerce market in India is projected to grow 40-45 percent in the coming years, with the beauty segment likely leading the pace. According to Redseer Strategy Consultants, the gross merchandise value of the q-commerce market reached $2.8 billion between 2022 and 2023, growing an impressive 77 percent.
As this trend unfolds, beauty brands are adapting their offerings to meet the specific demands of q-commerce consumers. Bhavesh Singhal, chief business officer at Good Glamm Group, which oversees brands like MyGlamm, indicates the company strategically identifies the top 20-30 products to cater to initial market demands. The company is keen to tweak its offerings based on real-time consumer behavior, emphasizing the sector’s fast-paced nature.
Interestingly, data suggests that q-commerce is slightly more premium compared to traditional marketplaces, but the assortment is inherently limited. Customers tend to prioritize everyday essentials like skincare, lip gloss, and deodorants over niche or complex products. Brands like Plum are noting that quick commerce now makes up a significant 13-18 percent of their total online sales, reflecting a shift in purchasing patterns among consumers.
Brands are also experiencing increased visibility on these platforms, with q-commerce ads significantly boosting brand recall among consumers. Vivek Sahni, founder of Kama Ayurveda, points out that being featured prominently on q-commerce apps translates to higher sales and better brand awareness. This focus on rapid delivery also finds resonance among consumers who seek premium products but with the assurance of quick access.
However, challenges abound. Q-commerce’s current operational model mainly suits large cities, making it less feasible in less densely populated areas. Experts suggest that while q-commerce may grow, it is unlikely to surpass traditional e-commerce in several categories in the short term.
Major players in the retail landscape have taken notice and are adapting accordingly. Companies like Flipkart and Amazon are launching their initiatives to tap into the rapid delivery service, with Flipkart recently unveiling Flipkart Minutes in Bangalore, providing steep discounts to compete with established q-commerce app players.
As the beauty landscape continues to evolve with technology and consumer preferences, the q-commerce model undoubtedly establishes itself as a vital and growing retail channel. For brands and retailers, this presents an opportunity not to be ignored.
As the quick commerce sector unfolds, it is critical to monitor how this paradigm shift reshapes not only the beauty industry but the entire retail ecosystem.
