China Quick Commerce Market Overview, 2029

The China rapid commerce market, which focusses on delivering items quickly to consumers, is significant because of its convenience, efficiency, and accessibility. It meets the increased desire for rapid gratification among urban customers by solving issues such as congested metropolitan environs and hectic lifestyles. This sector is particularly renowned for its scale and innovation, reflecting China's enormous customer base and advanced e-commerce ecosystem. The China rapid commerce market originated from traditional e-commerce, with early businesses such as Alibaba and JD.com pioneering online shopping. However, the market surged with the introduction of specific rapid commerce platforms and the increase in smartphone adoption. The COVID-19 pandemic has considerably expedited the expansion of China's rapid commerce market. Lockdowns and social distancing tactics pushed consumers to use online shopping and speedy delivery services at record rates. According to the China Internet Network Information Centre (CNNIC), the number of online shoppers in China climbed by 74.1 million during the first half of 2020. This shift in consumer behaviour has lasted after the epidemic, indicating long-term shifts in shopping habits and a bright future for the rapid commerce business. The pandemic also fuelled technologies such as automated deliveries, with companies such as JD.com and Meituan trying drone and robot deliveries to reduce human interaction. As urbanisation and technology improve, this industry will continue to grow and innovate, playing an important role in the country's retail scene. Quick commerce enterprises in China must comply with a variety of regulations, including food safety standards (State Administration for Market Regulation), labour laws, and data protection restrictions (Cybersecurity Law). They must also follow local restrictions regarding delivery services and parking. Also, enterprises must follow e-commerce regulations and maintain fair competition, as defined by the State Administration for Market Regulation. According to the research report, "China Quick Commerce Market Outlook, 2029," published by Bonafide Research, the China quick commerce market is anticipated to add to more than USD 28 Billion by 2024–29. The quick commerce segment, in particular, is thriving because to its promise of rapid delivery, frequently within minutes. This expansion is fuelled by expanding smartphone penetration, improved internet infrastructure, and increased use of digital payments. Several main trends are influencing the market. For starters, there is an increasing demand for ultra-fast deliveries, with some players boasting delivery speeds of 10 minutes or less. To expedite order fulfilment, dark shopfronts, micro-fulfillment centres, and automated warehouses are becoming increasingly common. Also, there is an increasing emphasis on sustainability, with customers preferring environmentally friendly packaging and delivery methods. The idea of "community group buying," in which neighbours band together to buy food in bulk at a discount, is also gaining popularity. Both tech giants and startups are major players in China's rapid commerce business. Meituan, a leading food delivery company, has moved into rapid commerce, offering a diverse selection of products with express delivery. Ele.me, owned by Alibaba, is another prominent operator that offers quick delivery for a variety of products. Other major players include JD.com's 7Fresh, Hema Fresh (a division of Alibaba), and Missfresh. Meituan partnered with local supermarkets and convenience stores to broaden their product offers. Ele.me has teamed with RT-Mart, a major supermarket chain, to improve its grocery delivery services. JD.com collaborated with local governments to enable autonomous delivery, leveraging their assistance for infrastructure development. Also, the industry is experiencing a surge in the use of new technologies such as AI for demand forecasting and route optimisation, autonomous delivery via drones and robots, and data analytics for personalised marketing.

The China rapid commerce market provides a varied selection of product categories that meet consumers' immediate demands. Groceries are the dominant segment in China's rapid commerce business. It contains fresh vegetables, packaged foods, beverages, and other household necessities. The development is being driven by the frequent and recurrent nature of grocery purchases, as well as the convenience of speedy delivery. Meituan, Ele.me, Hema Fresh (an Alibaba subsidiary), JD.com's 7Fresh, and Missfresh are among the key contenders. Meituan, for example, innovates with its "Meituan Maicai" service, which provides quick grocery delivery from local supermarkets and wet markets. Hema Fresh distinguishes itself with an innovative concept that combines online ordering with physical shopping, with an emphasis on fresh, high-quality products. While not as huge as groceries, it meets a distinct demand, particularly with the increase of distant employment and online schooling. Yunji, a startup that previously focused on social e-commerce, has expanded its product offers to include stationery products, capitalising on rising demand. The other section includes health and beauty products, personal hygiene items, and over-the-counter drugs. The recurring demand for these supplies, as well as the convenience of speedy delivery, are driving factors. Companies such as JD Health and Alibaba Health provide quick delivery for personal care products. Also, sites such as Meituan and Ele.me have specific sections for these products. While not as popular as groceries, the high price of these things makes them a considerable market sector. Platforms such as JD.com and Suning are major players, with JD.com innovating with its "JD Daojia" service, which promises deliveries within an hour. Suning stands out for its diverse product offering and excellent delivery network. In China's rapid commerce market, both cash on delivery (COD) and online payment methods are popular, catering to diverse consumer preferences and levels of digital proficiency. However, online payment is the dominant segment due to its simplicity, speed, and security, which is fuelled by the country's sophisticated digital infrastructure and broad acceptance of digital payments. Some sites still offer COD to cater to customers who prefer to pay in cash or who do not have access to digital payment options. Meituan and Ele.me are two key players in the COD market, while they encourage users to use online payment methods for a more seamless and safe transaction. The growth of online payments is being driven by technology advancements, shifting consumer behaviours, and a shift towards digital transactions, which has been expedited by the COVID-19 epidemic. Alipay, owned by Ant Group, an Alibaba affiliate, is China's top digital payment platform. It innovates with its QR code payment system, which allows users to make payments with their cellphones. Alipay also provides a digital wallet for holding funds and making online purchases, as well as bill payment, money transfer, and wealth management options. Meituan collaborated with Tencent, the parent company of WeChat, to incorporate WeChat Pay into its platform, taking advantage of WeChat's large user base and social capabilities. JD.com cooperated with China UnionPay to improve its payment services, giving customers more flexible and secure options. UnionPay, China's largest card payment organisation, provides a variety of digital payment solutions, including its mobile app, UnionPay App. It offers secure and convenient online payment services and accepts a variety of payment methods and currencies. Platforms in China's rapid commerce sector function through a variety of channels, including application-based operation, hybrid operation, and website-based operation, each with its own relevance and advantages. Application Based Operation is the dominating segment, because to rising smartphone penetration, the ease and personalisation provided by mobile apps, and a growing demand for app-based buying, particularly among younger consumers. Also, the integration of super apps such as WeChat and Alipay, which provide a variety of services within a single app, has fuelled the expansion of app-based operations. The importance of app-based operation stems from its simplicity, user-friendly interfaces, and ability to exploit mobile capabilities such as push alerts and location services. It's especially enticing to tech-savvy customers and those who want to shop on the go. Meituan, Ele.me, and Hema Fresh (a subsidiary of Alibaba) are among the market leaders in this area. Meituan, for example, innovates with its multi-service app, which offers a diverse choice of products and rapid delivery. The Hybrid Operation model integrates several channels, including mobile apps, websites, and physical stores, to provide customers with a seamless and integrated purchasing experience. JD.com stands out for its seamlessly integrated online and offline experiences, including in-store pickup and home delivery. Hema Fresh blends online and offline shopping, with an emphasis on fresh and high-quality products. The value of website-based operation stems from its accessibility, which does not require app downloads and can be accessed from any device with an internet connection. It also supports more detailed product information and is SEO-friendly, which helps firms reach a larger audience.

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Manmayi Raval

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Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Quick Commerce market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Food & Groceries • Stationary • Personal Care Items • Small Electronics & Accessories • Others (Pets, alcohol, gifts & flowers, Medicines)

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By Payment Mode • Cash on Delivery • Online By Technology • Application Based Operation • Hybrid Operation • Website Based Operation The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Quick Commerce industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.