A Conceptual Study of Q-Commerce Sustainability in India

Aditi Kumari1 Sunaina Panigrahi2 Tamanna Priyadarshini3 Supratim Pratihar4

PGDM Student PGDM Student PGDM Student Assistant Professor

Institute of Management and Information Science (IMIS), Bhubaneswar

kumari02aditi@gmail.com1 sunaina.panigrahi2001@gmail.com2
tamannamira111@gmail.com3 supratimpratihar.research@gmail.com4

Abstract

The global pandemic has significantly shifted consumer behavior towards favouring small-
ticket purchases on online shopping platforms. Some marketplaces prioritize consumer
centricity, leading to the rise of rapid delivery services with turnaround times of under thirty
minutes, termed "magic" delivery platforms. India, in particular, shows a compelling
momentum in this regard, with Quick Commerce projected to reach a value of $5 billion by
2025. However, amidst this growth, it's crucial to assess the environmental impact of such
swift and convenient solutions within the e-commerce and q-commerce industries. This paper
aims to investigate the current state of Sustainability and Quick Commerce in India,
identifying potential opportunities and challenges for the future. It also delves into the
intersection of these two realms, offering insights to marketers on crafting appropriate
strategies for consumer engagement and responsible purchasing decisions.

Keywords: customers, dark stores, environment, Q-commerce, sustainability

INTRODUCTION

The growth of digital technology and the digitization of society opens up new channels for
the exchange of goods. The dynamics of the economic process also increases as a result of
their evolution, which also enhances the elements and dimensions of the ideal trade
combination and the happiness of the exchange participants. The emergence of quick
commerce is a logical response to the convergence of information and communication
technologies, the migration of product exchange into the digital environment, and the
potential for physical delivery in a reasonably short amount of time with immediate
implementation of trade, logistics, and transport operations.

Sustainability, e-commerce and even q-commerce, have become increasingly, an important

matter of concern in recent years. In India, the rapid growth of e-commerce has not only led
to a rise in consumer demand, but it has also created challenges for sustainability. In today's
fast-paced world, the demand for quick and convenient solutions has never been higher. This
is especially true in the e-commerce industry, where the concept of "Quick Commerce" has
emerged as a way to provide customers with fast and efficient shopping experiences.

LITERATURE REVIEW

Sustainability and Q-commerce, or "quick commerce," are emerging as important topics in

the context of India's rapidly growing e-commerce market. As the country continues to
develop, there is an increasing need to address the environmental and social challenges
associated with e-commerce and consumption. This literature review aims to explore the
current state of research on sustainability and Q-commerce in India, highlighting the key
issues and challenges that need to be addressed in order for this model to succeed in the
country.

One of the main challenges facing sustainability and Q-commerce in India is the lack of
awareness and understanding of these issues among consumers. A number of studies have
found that Indian consumers are often unaware of the environmental and social impacts of
their consumption habits, and may not be willing to pay a premium for sustainable products.
Another key challenge facing Q-commerce in India is the lack of infrastructure and support
for sustainable business practices. This includes a lack of access to finance and investment
for sustainable businesses, as well as a lack of regulations and standards for certifying
sustainable products.

One of the main challenges facing the e-commerce industry in India is the high carbon
footprint associated with fast delivery services. Studies have shown that the transportation
sector is the largest contributor to greenhouse gas emissions in India (Sharma & Sharma,
2019; Goyal & Sharma, 2019). As the e-commerce industry continues to grow, the demand
for quick and efficient delivery services is also increasing, which has the potential to further
exacerbate this problem.
In addition to these challenges, there are also concerns about the environmental impacts of
the rapid delivery services offered by q-commerce, such as increased carbon emissions and
air pollution. This highlights the need for sustainable transportation and logistics methods,
such as electric vehicles and bike couriers, in order to mitigate these negative impacts.

To address these concerns, there is a growing need for sustainable practices in the e-
commerce industry in India. Studies have shown that sustainable practices such as reducing
packaging and using more eco-friendly transportation methods can help to reduce the
environmental impact of the industry (Singh & Singh, 2020; Sharma & Sharma, 2019).

Despite these challenges, there are also a number of opportunities for Q-commerce to
promote sustainability in India. For example, some studies have found that Q-commerce can
provide a way for small and medium-sized enterprises (SMEs) to access global markets and
promote sustainable products and practices. Additionally, the use of innovative technologies
such as blockchain and AI can help to trace the origin and authenticity of products, and
promote transparency and ethical business practices. While Q-commerce is relatively new, it
is becoming increasingly popular in India, as consumers demand faster and more efficient
delivery services. As a result, many e-commerce companies in India are now offering quick
delivery services to meet this demand. However, there are also challenges associated with Q-
commerce, such as the high cost of providing quick delivery services and the potential for
increased carbon emissions (Singh & Singh, 2020; Sharma & A., 2019; Patel & Sharma,
2018).

Given these challenges, it is essential that the e-commerce industry in India adopt sustainable
practices to reduce the environmental impact of quick delivery services. For example,
companies can implement sustainable transportation methods, such as electric vehicles, to
reduce carbon emissions (Sharma & Sharma, 2019). Additionally, companies can also
explore alternative delivery models, such as crowd-sourced delivery, to reduce costs and
improve efficiency (Singh & Singh, 2020).

There is a growing body of literature on sustainability and q-commerce in India that

highlights the key issues and challenges facing this model in the country. These include a
lack of awareness and understanding of sustainability among consumers, a lack of
infrastructure and support for sustainable business practices, and concerns about the
environmental impacts of rapid delivery services. However, there are also a number of
opportunities for q-commerce to promote sustainability in India, such as by providing access
to global markets for SMEs and using innovative technologies to promote transparency and
ethical business practices.

Recent studies have shown that e-commerce has a significant impact on the environment. The
increased use of transportation for online deliveries, for example, has led to increased
emissions of greenhouse gases. Additionally, the use of packaging materials for online orders
also contributes to waste and pollution. Further research is needed to examine the specific
practices and business models that are most effective in promoting sustainability and ethical
business practices within the e-commerce industry in India.

OBJECTIVES

The objectives of this paper are to:

1) Understand the current state of sustainability and q-commerce in India

2) Identify the major challenges and issues related to sustainability and q-commerce in
India
3) Provide recommendations for addressing these challenges and promoting sustainable
q-commerce in India

METHODOLOGY

This paper will be based on a review of existing literature on sustainability, e-commerce and
q-commerce in India. The research will be conducted using academic journals, reports, and
news articles. The main purpose of this research is to highlight the nature, characteristics,
current state, and potential future growth of q-commerce as the subsequent generation of e-
commerce. The descriptive method, situational analysis, and content analysis are examples of
general and particular approaches that are utilised to accomplish the study purpose.

BACKGROUND

India is one of the world's fastest-growing e-commerce markets, with a rapidly expanding
middle class and an increasing number of consumers turning to online platforms for their
shopping needs. However, this growth has also led to increased pressure on the environment,
as the e-commerce industry is known to have a significant carbon footprint. The Indian
government has made efforts to address this issue through various policies and initiatives, but
there is still much work to be done to ensure that the e-commerce industry in India is
sustainable in the long-term.
With the promise of lightning-fast delivery in under 10 minutes, quick commerce is upending
the Indian e-grocery market. In addition to the change in customer thinking, the e-grocery
sector has greatly benefited from the increased acceptance of online hyperlocals. Stock-up,
top-up, and impulsive purchases were the three main consumer purchasing behaviours in the
consumables sector (Redseer,2021). Hyperlocal delivery specifically aimed to address the
unforeseen purchases, whereas conventional e-commerce and physical kirana businesses
catered to stock-up and to a lesser extent top-up buying patterns. These customers are not
overly concerned with the next big sale or discounts and instead appreciate value and prompt
delivery.

In India, the e-commerce sector has been growing rapidly in recent years. According to a
report by the Confederation of Indian Industry (CII) and Deloitte, the e-commerce market in
India is expected to reach $200 billion by 2026. However, this growth has also led to
increased pressure on the country's already-strained resources and infrastructure.

The q-commerce industry has evolved over three generations and there have been significant
changes in it as depicted in the figure 1

Figure 1: Evolution of Quick Commerce industry

Source: (Mirkovic, 2021), (Delivery Hero, 2020, p. 16).

QUICK COMMERCE IN INDIA

Quick Commerce essentially combines last-mile delivery with e-commerce. The quickness of
delivery is rapid commerce's USP that sets it apart from regular e-commerce. The recent
exponential growth of the e-commerce sector has significantly changed how consumers shop.
The launch of q-Commerce coincides with shifting customer behaviour, opening the door for
a billion-dollar market in the not-too-distant future. Q-Commerce platforms offer a quicker
shopping experience than conventional e-commerce. This results in simpler shopping
processes, lighter carts, faster checkout, and an improved experience overall. Quick
Commerce refers to the concept of providing customers with fast and efficient shopping
experiences, often through the use of same-day or next-day delivery options. In India, quick
commerce has become increasingly popular in recent years, with many online retailers and
platforms offering these services to customers.

However, the rapid expansion of Quick Commerce in India has also led to increased pressure
on the environment, as these fast delivery options often rely on fossil fuels and emit large
amounts of greenhouse gases. Additionally, the packaging and waste associated with quick
commerce can also have a significant impact on the environment.

Consumers favouring convenience over value is the cause of the emergence of fast commerce
in India. In contrast to planned trips to the grocery shop, spontaneous purchases have
increased as a result of increasingly hectic lifestyles. Due to its speed and dependability, rapid
commerce is viewed favourably by working people.

Three elements make up the fast commerce business model: a mother or primary hub,
distribution centres, and dark storefronts (commonly referred to as last-mile delivery stores).
Smaller warehouses called the dark can hold 500–2000 things. These warehouses are more
convenient for customers, allowing for quick order fulfilment. Following the placement of an
order, the last-mile stores and distribution hubs will work together to plan delivery logistics.
Higher shipping costs are associated with quick fulfilment. In these situations, q-commerce
companies plan for the order fulfilment process using data-led estimating models.

In its current stage, the Indian q-commerce market has delved into segments of tiny,
necessary, and portable product lines, including as food, things for the house and body, pet
products, stationery, small electronics, etc. Although not all of these things must be delivered
in under 30 minutes, businesses are emphasising that it is now a possibility and that they will
go to great lengths to provide their customers with an amazing experience. On the other side,
since speedy deliveries save them time and effort, consumers are more willing to accept the
minimum delivery rates. The expansion of Q-Commerce will be made possible by the
ongoing spread of online consumer goods throughout India. The metro and tier-I cities are
anticipated to contribute close to half of this growth. The timing is ideal for q-commerce
businesses to increase their market share and reach by making hyperlocal delivery the
standard rather than an add-on.

THE DARK STORES

Dark Stores are tiny distribution facilities with the goal of providing extremely quick delivery
—or what Dablanc et al. (2017) refer to as "instant deliveries"—of goods acquired online via
applications. These logistical hubs resemble "shadow" shops with shelves where goods are
kept, but unlike a typical store, customers cannot access them; instead, order pickers must
choose the things they want, which are then delivered by delivery vehicles.

Dark stores typically have a surface area of 100 to 300 square metres, are located in
basements, and have between 1,000 and 2,500 goods. Typically, they operate in a 2 km or
less catchment area. Deliveries are made by delivery drivers who ride bicycles or scooters
and are promised to be made within 15 minutes. The organisation and layout are described as
being "halfway between a distribution centre and a shop," hence the moniker "dark store."

The products are partially displayed like they would be in a store so that the order pickers
may access them, even if the dark store is not frequently visited by shoppers. The dark stores
are situated close to the ultimate customer's delivery location, in the middle of the cities,
barring orders over great distances, in order to adhere to the 15-min time constraint.
Therefore, the major cities may undergo a true logistical revolution in the next years, if they
are able to overcome the numerous objections to urban annoyances that are frequently viewed
as intolerable.

The majority of the competitors—Blinkit, Zepto, Swiggy Instamart, and Dunzo—are

establishing a vast network of underground storefronts to facilitate quick deliveries. Dark
stores are retail locations where businesses keep their goods. They act as warehouses or
fulfilment centres but lack storefronts. Dark stores allow for 10–30-minute delivery because
they are modest and situated close to serviceable consumer centres throughout a metropolis.
Businesses collaborate with neighbourhood business owners who manage and run these
establishments on their behalf. The merchants can offer insights to the Q-commerce business
plans being developed by start-ups as they are typically knowledgeable about the purchasing
habits and product requirements of customers live in specific locations. Companies
themselves drive the majority of technological capabilities and delivery.

OPPORTUNITIES AND CHALLENGES

Despite the challenges associated with Quick Commerce, there are also a number of
opportunities to make this model more sustainable in India. One potential solution is to focus
on developing more efficient and eco-friendly logistics and delivery methods. This could
include the use of electric vehicles or bicycles for deliveries, as well as the implementation of
more efficient routing algorithms to reduce the distance and emissions associated with
delivery. Another opportunity is to focus on reducing packaging waste and using more
sustainable materials. This could include the use of biodegradable or recycled materials, as
well as the implementation of "naked" or "unpackaged" delivery options.

However, there are also challenges that need to be addressed in order to make quick
commerce more sustainable in India. One major challenge is the lack of infrastructure and
support for sustainable logistics and delivery options. This includes a lack of access to
finance and investment for sustainable logistics and delivery companies, as well as a lack of
regulations and standards for certifying sustainable delivery practices.

The major issue with q-commerce is that while delivery costs are high, many products have
minimal profit margins. Even when businesses claim 10- to 20-minute delivery, e-commerce
players nevertheless face numerous obstacles. Some of the intriguing challenges in quick-
commerce today include developing technology that reliably delivers goods in 10 minutes
and managing a supply chain in a way that adapts to such a high-touch and high-frequency
use case.

FACTORS IN THE GROWTH OF Q-COMMERCE INDUSTRY

The enormous growth in this industry sector was prompted by the need to meet a certain sort
of consumer demand that was created by the quick development of digital technologies, the
growing urbanisation of the population, anti-outbreak measures implemented during the
COVID19 epidemic, etc. A confluence of various events and forces governs the growth of
this commercial service:

 Oversights in pre-planned purchases or when a person discovers a shortage of a

required good that is not sold in convenient places and needs to be obtained in a
hurry.
  The dynamic shift in lifestyle and physical activity of the modern person, where some
people don't have time to plan purchases and need to react right away to meet certain
needs, like product needs at work without the option of leaving it, product demand
after a long day at work and during non-working hours for traditional trade, the
provision of prepared meals or products in households, etc.
 The dynamic growth of digital competencies and abilities, where for some people
using electronic communication channels to buy goods is both a normal condition in
the digital era and part of their digital life as a topic.
 New chances for a point of contact and the realisation of product exchange are made
possible by the extension of the multiverse and the amount of time customers spend
there for business and enjoyment.

RESULTS

The results of the literature review indicate that the growth of e-commerce in India has led to
increased pressure on the country's resources and infrastructure. The increased use of
transportation for online deliveries and packaging materials for online orders have
contributed to emissions of greenhouse gases and waste. Additionally, the growth of e-
commerce has also led to challenges for small and medium-sized enterprises (SMEs) in India.
These businesses often lack the resources and infrastructure to compete with larger e-
commerce companies, which can lead to a lack of competition and reduced innovation.

DISCUSSION

The results of this paper suggest that sustainability and q-commerce are interconnected issues
in India. The growth of e-commerce and also q-commerce has led to increased pressure on
the country's resources and infrastructure, but it has also created opportunities for innovation
and economic growth.

To address these challenges and promote sustainable q-commerce in India, there is a need for
a comprehensive approach that includes both government and private sector collaboration.
This could include measures such as increasing the use of sustainable transportation for
online deliveries, promoting recycling and reducing packaging waste, and providing support
for small and medium-sized enterprises.

CONCLUSION
Quick Commerce is a rapidly growing concept in India, but it also presents significant
challenges for sustainability. To address these challenges and make quick commerce more
sustainable, there is a need for more efficient and eco-friendly logistics and delivery methods,
as well as for a reduction in packaging waste and the use of more sustainable materials.
Additionally, the Indian government and industry need to invest in the infrastructure and
support for sustainable quick commerce, through regulations and standards, as well as
financial support to sustainable companies. Further research is needed to examine the specific
practices and business models that are most effective in promoting sustainability within the
quick commerce industry in India, as well as to explore the potential for q-commerce to drive
positive change in the country's broader economy and society. Sustainability and q-commerce
are important issues in India, and the growth of e-commerce has led to increased pressure on
the country's resources and infrastructure. To promote sustainable q-commerce in India, there
is a need for a comprehensive approach that includes both government and private sector
collaboration.

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