Q-comm may take longer to deliver success in Bharat

After tasting success in urban centres, quick commerce startups are now looking at Tier 2 and 3 markets as the next growth frontier. Replicating their Tier-1 success in smaller towns and cities, however, could take as long as five to seven years. And while the opportunity is huge, it will come with region-specific challenges, say analysts. “While convenience as a value proposition should hold in Tier 2 and 3 cities as well, lower AOV (average order value) and concentration of demand due to lower population density and a slow change in consumer behaviour, could adversely impact unit economics,” Pankaj Makkar, managing director, Bertelsmann India Investments, told FE.