Growth of Quick Commerce for Small Electronics
Quick commerce refers to platforms that deliver products within an extremely short time frame, typically under 30 minutes. This convenience is driving consumer preference, especially for small-ticket electronics like earbuds, chargers, cables, and other mobile accessories. These products are generally low-cost and fulfill immediate or unplanned needs, such as replacing a lost charger or a damaged pair of earphones.
Consumers seem to prefer purchasing small electronics from quick commerce platforms like Instamart, Blinkit, and Zepto because they offer fast delivery. The platforms have adapted to this demand by dedicating specific sections to such products, like Blinkit’s “Content Creation Tools” for items like tripods and microphones.
Why small electronics?
Small-ticket items are affordable, which makes consumers more willing to make quick purchases without extensive comparison shopping or researching the product.
The immediate need for replacement—like when a charger is lost—makes quick commerce highly convenient for these products.
Consumer Preferences and Research Findings
According to Counterpoint Research, consumers are most comfortable purchasing electronics under Rs 1000 through quick commerce platforms. Anything above that price range, however, tends to push consumers toward traditional e-commerce platforms (like Amazon, Flipkart, etc.), where they can take their time to compare prices, reviews, and deals.
In essence:
- Quick commerce serves low-cost, urgent purchases.
- Traditional e-commerce remains the preferred channel for more expensive, planned purchases due to better comparison tools, discounts, and financing options.
India’s Growing Electronics Market and Online Sales
India’s electronics market is expanding rapidly. The market size reached $155 billion in FY23, and online sales in the consumer electronics category now account for 34% of the market. This is a significant portion, showing how much the e-commerce space has grown, especially in India, where digital penetration is increasing.
Notably, India’s mobile accessories market (including chargers, cables, and accessories) alone was valued at $9.83 billion in 2023 and is expected to nearly double by 2030. This rapid growth creates a strong incentive for platforms like quick commerce to cater to this demand.
Quick Commerce Platforms Are Expanding
One of the main reasons quick commerce is expanding rapidly is the growing network of dark stores. These are localized warehouses that stock goods and fulfill fast delivery orders. Quick commerce platforms like Instamart, Blinkit, and Zepto are increasing the number of these dark stores to better serve their customers. For example:
- Instamart plans to have over 1,046 dark stores by March 2025.
- Blinkit aims for 2,000 dark stores by December 2025.
- Zepto intends to expand to 1,200 dark stores by March 2025.
- This expansion is crucial because it helps ensure that products are readily available and can be delivered quickly, which is the hallmark of quick commerce.
Brands and Quick Commerce
Brands like Nu Republic, which sells products such as earbuds and smartwatches, are increasingly prioritizing quick commerce platforms. Nu Republic’s founder, Ujjwal Sarin, mentions that 60% of their sales come from quick commerce channels, indicating that many brands see quick commerce as a vital and primary channel for sales.
Quick commerce helps brands meet unplanned demand:
Example: If someone forgets their earbuds at work or loses a charger during travel, they can quickly order a replacement through a quick commerce platform.
This immediacy has created a new consumer market for brands selling these smaller products.
Expansion of Quick Commerce Beyond Small Items
Although quick commerce has been successful for low-ticket electronics, platforms are now looking to expand into larger items like mobile phones and laptops. This presents new challenges, especially in logistics:
Large electronics like smartphones require more careful handling, larger storage spaces (like megapods), and more intricate supply chains.
Logistical challenges: Unlike traditional e-commerce, where stock is centrally stored and distributed, quick commerce platforms often have multiple warehouses in different cities, leading to higher costs for managing these inventories.
The Future of High-Value Electronics on Quick Commerce
Quick commerce is still experimenting with high-value items such as smartphones and laptops. While some platforms like Blinkit and Zepto have ventured into delivering iPhones in minutes, industry experts like Arnold Su of ASUS point out that storing large electronics in dark stores comes with logistical challenges. This means that larger electronics still require careful planning before scaling up on quick commerce platforms.
Consumer Behavior and Trust
For high-priced products, consumers tend to:
Compare deals: They’re more likely to check discounts, financing options, and product specifications, which are more easily found on traditional e-commerce platforms.
Need trust: Expensive items typically come with higher risks for consumers, meaning they are more likely to prefer established e-commerce sites that offer customer service, guarantees, and easier returns.
while quick commerce is great for smaller, urgent purchases, it still has to develop systems to build trust and offer incentives for consumers to feel comfortable purchasing high-value electronics.
Frequently Asked Questions
What is India’s $9.83 billion mobile accessories market?
India’s mobile accessories market is valued at $9.83 billion and includes products such as phone cases, screen protectors, chargers, headphones, and more. The market is growing rapidly due to the increasing use of smartphones and evolving consumer needs.
What is quick commerce?
Quick commerce refers to the fast delivery of goods, typically within an hour or less. It involves online platforms and apps that allow consumers to order products and have them delivered to their doorstep quickly, catering to the on-demand nature of consumer behavior.
How is India’s mobile accessories market leveraging quick commerce?
The mobile accessories market in India is tapping into quick commerce by partnering with delivery platforms and e-commerce apps. This allows consumers to get accessories like chargers, earphones, and other essentials delivered in record time, fulfilling the demand for convenience and speed.
What are the key drivers behind this market growth in India?
Key drivers include the widespread adoption of smartphones, a growing middle class with disposable income, increasing reliance on mobile devices, and the rise of e-commerce and quick commerce platforms. Additionally, consumer preferences for branded and high-quality accessories are pushing the market forward.
How does quick commerce affect consumer purchasing behavior in India?
Quick commerce significantly influences consumer purchasing behavior by prioritizing convenience and instant gratification. Indian consumers are more inclined to purchase mobile accessories through online platforms that promise rapid delivery, thus reducing the wait time compared to traditional shopping.
What types of mobile accessories are most in demand in India?
The most in-demand mobile accessories in India include phone cases, screen protectors, portable chargers, Bluetooth headsets, wireless earphones, and power banks. The demand for these accessories has been amplified by the growing usage of smartphones for both personal and professional needs.
How are e-commerce platforms influencing the mobile accessories market?
E-commerce platforms play a crucial role by offering a wide range of mobile accessories from different brands, often coupled with exclusive deals, easy returns, and fast delivery. Quick commerce platforms further enhance the experience by reducing delivery times and offering products on demand.
What challenges does the mobile accessories market face in India?
Challenges include counterfeit products, low consumer awareness about quality and brands, price sensitivity, and logistical difficulties in rural and remote areas. Additionally, the competition between online and offline markets remains strong.
What role do local brands play in India’s mobile accessories market?
Local brands are gaining popularity by offering affordable, quality alternatives to international brands. They are leveraging quick commerce to reach consumers more effectively, offering faster delivery and localized products that cater to the specific needs of the Indian market.
What are the future trends for India’s mobile accessories market?
Future trends include increased demand for wireless accessories, integration with emerging technologies like 5G, and sustainable, eco-friendly products. The market will likely continue to be shaped by quick commerce innovations, improved logistics, and rising consumer expectations for convenience and speed.
Conclusion
Quick commerce platforms have made significant strides in offering small electronics, particularly because these products fulfill immediate needs. The platforms’ growth in dark stores is enabling them to meet this demand. However, they face challenges when trying to expand into high-value electronics, which involve more complex logistics and require consumer trust. The future of quick commerce in the electronics category will depend on how well platforms can address these logistical and trust issues, as well as whether they can offer the same benefits (like financing, warranties, and competitive pricing) as traditional e-commerce platforms.
