A significant portion of the growth in quick commerce is coming from tier 2 and tier 3 cities, presenting tremendous opportunities for brands to expand in emerging markets, according to Atique Kazi, President of Data Performance and Digital Products at GroupM India. He also emphasised that one of the most effective strategies in this space is smart ad timing, which enables brands to strategically choose when to be active, whether at particular times of the day or on specific days of the week.
Speaking at the GroupM TYNY report launch in Mumbai, while reflecting on the shift in India’s e-commerce landscape, Kazi emphasised that it’s fascinating to recall how it all began with platforms like Rediff.com and Baazi.com, among others.
The journey since then has been nothing short of phenomenal, evolving at an incredible pace. Many might not realise that India now boasts the third-largest online shopper base in the world.
“To put this into perspective, it’s estimated that over the next three years, the total online retail Gross Merchandise Value (GMV) will surpass approximately Rs 1,67,000 crore. This would mean that about 10 to 11% of all retail in India will be influenced by digital commerce. Alongside this growth, there’s been a significant shift in brand advertising budgets toward retail media. In fact, retail media is currently the fastest-growing channel in advertising, accounting for around 22% of the overall digital advertising expenditure in 2024 alone,” he said.
Furthermore, Kazi highlighted that this rapid growth has highlighted the increasing need for greater collaboration between client teams, including integrated marketing teams, brand teams, customer teams, sales teams, and distribution teams, to enhance operational efficiency and synergy.
To achieve this, many organisations are restructuring their team dynamics using models such as the embedded model or the unified model. These approaches aim to seamlessly blend brand love and brand vibrancy, creating impactful connections that truly resonate with consumers.
Kazi underscored that in recent years, the concept of the omnichannel effect has gained significant traction. Marketers have long discussed the idea of ROPO- Research Online, Purchase Offline, and it remains relevant on a large scale. However, a reverse trend has also emerged, where consumers engage in ‘reverse showrooming’ by researching offline and then purchasing online.
“Building on this, new models such as buy online, pick up in-store have gained popularity, reflecting the evolving shopping behaviors. Personally, I find these acronyms quite fascinating. This omnichannel approach is also driving digital-first or D2C (Direct-to-Consumer) brands to expand their presence into physical retail spaces. Take Mokobara, for instance- originally launched as an online D2C brand, it now operates in 12 cities with remarkable success,” Kazi said.
Meanwhile, the e-commerce landscape is witnessing the rise of new challenger brands, intensifying competition for established players operating across MTGT (Modern Trade and General Trade) and online platforms. This shift is pushing marketers to be more agile and adaptable, often compelling them to outmaneuver emerging competitors at their own game, he stated.
Interestingly, many large companies are responding by launching digital-exclusive products and adopting the nimble, innovative strategies of these challengers. In cases where they find it difficult to compete, they often opt to acquire these disruptive newcomers, an approach we’ve seen repeatedly in the industry.
“When discussing synergies, the key takeaway from an omnichannel perspective is that the consistency between what consumers see in advertisements and what they encounter on shelves is crucial. This unification is significantly enhancing brand presence. In the e-commerce landscape, brands are typically active on five to seven marketplaces simultaneously, each of which operates as a walled garden with its own intricate ecosystem. Navigating these complexities requires brands to delve deeply into each platform’s dynamics,” Kazi said.
He added that brands leveraging technology and automation are clearly excelling because manually managing these complexities is nearly impossible.
“Artificial intelligence (AI) plays a pivotal role in this space. In fact, without AI, you can’t win on e-commerce, as it provides real-time insights into crucial factors such as shelf presence, pricing dynamics, product availability, share of search, and share of shelf, not just for one’s own brand but also for competitors,” Kazi said.
“With the rapid evolution of commerce, the next five years are likely to see a seamless integration of media and commerce, where every media opportunity becomes a transactional opportunity, and every transaction turns into a chance for media engagement. So media is everywhere and media is everything,” he added.
Discussing the rapid growth of the quick-commerce sector and its transformative impact on India’s e-commerce landscape, Kazi highlighted, “While overall sales in this market may not be massive right now, let me assure you that quick commerce dominates a significant portion of our client conversations. What truly fascinates me is how the 10-minute delivery promise, with its immediacy and unparalleled convenience, is reshaping the way India will shop in the future.”
Furthermore, he went on to say that the most exciting part is that we’re just scratching the surface. To put it in perspective, if we compare it to smartphone penetration, we’re currently at about 6-7%, which is astonishing. The potential for growth is enormous. Additionally, a significant portion of this growth is coming from tier 2 and tier 3 cities. Recently, Blinkit announced plans to expand to 100 cities with 2,000 dark stores by 2026. This presents a tremendous opportunity for brands to grow alongside these retailers in emerging markets.
“In the evolving quick commerce landscape, the journey began with a search-based approach, primarily catering to need-based and emergency-driven purchases. However, platform data now reveals that at least 50% of transactions stem from a full-funnel strategy, leveraging pop-ups, interstitials, catalog browsing, post-purchase prompts, and ad units like “Would you like to add…?” This shift reflects a growing segment of exploratory audiences, prompting marketers to strategically integrate these funnels for enhanced engagement,” he said.
“Moreover, quick commerce is transcending its initial focus on daily essentials. Today, consumers can purchase everything from iPhones to PlayStations on these platforms. Looking ahead, the biggest growth potential lies in categories like health, pharma, and personal care, which are poised to drive the next wave of consumption in the quick commerce space,” Kazi added.
He also highlighted that one of the most effective strategies in this space is smart ad timing. This approach allows brands to strategically choose when to be active, whether at a specific time of day or on certain days of the week.
“For instance, if you are marketing breakfast cereals or similar morning products, targeting the morning hours would be ideal. Conversely, if you’re promoting desserts or nighttime chocolates, the post-dinner timeframe is more effective. Similarly, snacks and mixers can dominate the weekend space, creating a strong association with leisure and social gatherings,” he added.
Brands are also capitalising on regional and micro-events to enhance engagement. A recent example is Blinkit’s initiative during the Maha Kumbh, where they launched a temporary app store to provide daily essentials to pilgrims, catering to a specific audience at the right moment. The level of innovation from quick commerce retailers is remarkable. For example, the playful banter between Zepto and Shaadi.com showcased their creativity and willingness to push boundaries, effectively leveraging market trends to deepen brand connections.
In conclusion Kazi mentioned, “Many marketers are now crafting year-round calendars to maintain audience engagement by harnessing the power of immediacy and relevancy. Additionally, new players with significant influence and established footprints in modern trade (MT) and general trade (GT) retail are entering the space, intensifying the competition. In this dynamic environment, it’s crucial for brands to prioritise sustainable and profitable growth. Over-investing could be risky, so a balanced approach is essential.”
“To succeed in quick commerce, brands need to be nimble-footed, act now and very responsive. It’s a rapidly evolving space, and those who adapt quickly will be best positioned to thrive. There’s much more to come in this exciting sector,” he added.
