Quick Commerce
During the Covid-19 lockdown, physical shops had to close their stores or operate at limited capacity. Many business-owners adapted by moving their shops online, leading to the e-commerce boom.
Food and grocery deliveries became common practise during lockdown. Other sectors, such as fashion and pharmaceuticals, have also tapped into e-commerce as more customers seek the same speed and convenience in other services.
An evolution of e-commerce, dubbed quick commerce, is distinguished by immediate fulfilment and delivery. The global quick commerce market grew rapidly during the pandemic and is set to hit US$72 billion by 2025.
But last-mile delivery, the costliest component of a fulfilment supply chain, is a challenge for traditional warehouses, which are usually far from customer bases. In response, quick-commerce providers have set up "dark stores", or micro-fulfilment facilities, usually in repurposed retail stores in more central locations to meet tight delivery deadlines while making significant savings in last-mile delivery. The functions of these facilities are also more flexible, as they can adapt to various products and capitalize on the advantages of centralized fulfilment.
Driven by the growing demand for convenience and immediate gratification, the quick-commerce sector is poised for further expansion. Advancements in technology and logistics optimization are faster and more efficient delivery models. And as this sector continues to evolve, consumers can expect enhanced convenience and a seamless shopping experience.
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