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Home Analysis

Quick Commerce is the future of e-commerce in India: GroupM’s TYNY 2025

by MN4U Bureau
February 12, 2025
in Analysis
Reading Time: 2 mins read
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Quick Commerce is the future of e-commerce in India: GroupM’s TYNY 2025
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Mumbai: Quick Commerce is no longer just a trend—it’s the future of e-commerce in India. According to GroupM’s This Year Next Year (TYNY) 2025 report, Quick Commerce is set to account for 15% of India’s total e-commerce sales within the next decade. With overall e-commerce penetration expected to grow to 18-20% of total retail, Quick Commerce is witnessing exponential growth.

Key Trends Driving Quick Commerce
1. Expansion Beyond Metros

No longer confined to Tier 1 cities, Quick Commerce players like Blinkit, Zepto, and Instamart are aggressively entering smaller towns. Blinkit alone plans to expand to 100 new cities with 2,000 dark stores by 2026.
Opportunity: Brands can explore hyper-local campaigns, launch region-specific products, and leverage new consumer data.

2. Evolution of Full-Funnel Advertising

Once dominated by search ads, Quick Commerce platforms now offer a full range of media solutions, including story ads, pop-ups, and post-checkout placements, competing with Amazon and Flipkart.
Opportunity: Premium brands can target a younger, exploratory audience, although high Customer Acquisition Costs (CAC) require careful optimization.

3. Beyond Groceries: Expanding Product Categories

Quick Commerce is no longer just about daily essentials. Consumers are buying iPhones, PlayStations, apparel, and even high-value electronics. The next growth areas? Health, personal care, and tech gadgets.
Opportunity: Brands must test and refine their product mix to maximize Quick Commerce potential.

4. Smarter, More Targeted Ad Timing

Time-of-day and day-of-week advertising is now a game-changer.
Opportunity: Brands can optimize ad spend by targeting morning shoppers for dairy, post-dinner consumers for desserts, and weekend buyers for snacks and indulgence.

5. Regional & Micro-Event Activations

Brands are moving beyond traditional Diwali and EOSS sales, tapping into niche events like Mahakumbh, Singles Day, and Mother’s Day to drive engagement.
Opportunity: Year-round marketing strategies tailored to regional and micro-events can drive consistent consumer engagement.

6. Creative Brand Collaborations & Innovations

From Jimmy’s Orange Twisted Screwdriver launching exclusively on Instamart to Zepto’s viral banter with Shaadi.com, brands are pushing boundaries in consumer engagement.
Opportunity: Out-of-the-box partnerships can boost brand recall and deepen audience connect.

7. Rising Media Costs: A Challenge for Brands

Advertising CPMs on Quick Commerce platforms are now rivaling IPL rates, making cost efficiency a priority.
Opportunity: Smart brands will negotiate better deals, automate ad spends, and track key financials to maintain profitability.

8. Balancing Growth with Profitability

As expansion and media costs surge, sustainability is key.
Market Outlook: The next 1-2 years will likely see market consolidation, with Flipkart and Amazon strengthening their Quick Commerce plays. The brands that scale strategically—rather than over-invest—will emerge as winners.

Quick Commerce is not just reshaping Indian e-commerce—it’s defining the future of retail. The brands that embrace innovation, agility, and data-driven decision-making will thrive in this fast-moving space.

The race is on—who will lead the Quick Commerce revolution?

Tags: GroupM's TYNY 2025Quick commerce

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