THE RISE OF e- COMMERCE

Subject:

• GS-3: Economy & Digital Markets – E-commerce Growth, Business Strategies, Market Dynamics
• GS-2: Governance & Regulation – Consumer Safeguards, Competition Policy

 

Key Points

Understanding Quick Commerce

• A fast-delivery e-commerce model promising 10-20 minute turnarounds.
• Relies on dark stores (warehouses for online orders only).
• Leverages customer data for demand prediction and tailored shopping.

Economic Impact & Advantages

• India’s quick commerce sector hit $3.34 billion in 2024, projected to reach $9.95 billion by 2029 (76% YoY growth in FY 2024).
• Boosts brand exposure and streamlines supply chains.
• Creates jobs by tapping into a low-cost, youthful workforce.

Challenges & Market Fairness

• Traditional retailers struggle against aggressive discounting and predatory pricing.
• The All-India Consumer Products Distribution Federation (AICPDF) lodged a complaint with the Competition Commission of India (CCI) against Blinkit, Zepto, and Swiggy Instamart.
• Claims include: Below-cost pricing to eliminate rivals and data-driven differential pricing by location and behavior.

Insights & Next Steps

• A regulatory framework is needed to ensure equitable competition.
• Enhanced consumer protection laws should curb data-based price manipulation.
• Policies should support coexistence of traditional and quick commerce models.

Mains Practice Question

“Examine the growth of quick commerce in India. How does it affect traditional retailers, and what regulatory steps are required for fair market competition?”