As competition intensifies in the quick commerce sector, marketing spends by leading players are expected to rise by 30-40% in 2025, reaching Rs 2,000 crore, according to industry experts.
The rise in spending will primarily target digital marketing in tier-1 cities, utilising social media campaigns, hyperlocal targeting, WhatsApp promotions, and personalised notifications. In smaller cities, where many quick commerce companies are expanding, firms are expected to combine digital efforts with offline strategies like hoardings and free samples.
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“Based on the aggressive expansion plans of these quick commerce players, we estimate marketing budgets will grow by 30-40% year-on-year,” said Karan Taurani, senior vice-president at Elara Securities.
The sector is currently dominated by Blinkit, Zepto, and Swiggy Instamart, which together account for $9 billion (Rs 77,642 crore) of the annualised gross order value (GOV) of around $10 billion (Rs 86,269 crore). However, new entrants like Flipkart Minutes, Amazon, and BigBasket’s quick commerce arm are set to intensify the race for market share.
“This is a low-margin business where volume is critical for profitability. Without scale, it’s tough to survive,” said Satish Meena, an analyst at Datum Intelligence.
The competitive landscape has already triggered a rise in marketing costs. For instance, Zomato’s Q3 earnings showed that Rs 521 crore was spent on advertisement and sales promotion, a 39.3% increase from Rs 374 crore in the same quarter last year. Of this, experts estimate that Rs 150 crore was allocated to Blinkit. Comparable spending is expected by Zepto and Swiggy Instamart, and this trend is expected to continue in 2025.
During its post-results analyst call, Zomato’s management acknowledged that heightened competition would drive up digital marketing costs for both the company and Blinkit.
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Experts said that expanding into non-metro markets will be a key growth driver in the coming years. Taurani noted that these regions offer better margins compared to metro cities but require significant investment to penetrate.
Meanwhile, Flipkart and Amazon are expected to spend substantial resources on promoting their quick commerce services to compete with established players.
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