With the explosive rise of quick commerce and the expanding e-commerce landscape in Tier 2 and Tier 3 cities, platforms like Meta are cementing their role as drivers of India’s digital retail transformation.
Meghna Apparao, Director of E-Commerce & Retail, India, at Meta, spoke to e4m about how AI-powered tools, influencer-driven engagement, and seamless messaging are reshaping shopping behaviours in both urban and emerging markets.
The insights, based on two Meta-commissioned studies, underscore why the platform has intensified its focus on these domains—a move aligning with the broader industry trends and Meta India’s robust growth trajectory.
Quick Commerce: Convenience Redefined
Quick commerce has gone from a curiosity to an indispensable service. According to the Meta X GWI study, 9 out of 10 respondents are aware of quick commerce services, and nearly half used them in the past week—a testament to how these platforms have become ingrained in daily life.
“Twelve to eighteen months ago, people asked, ‘Who needs anything in 10 minutes?’ Today, platforms like Zepto, Blinkit, and Swiggy Instamart have proven their relevance by addressing a latent need for speed and convenience,” explains Apparao. Seasonal trends are further fuelling growth, with 55% of users increasing their quick commerce spending during Diwali, and Valentine's Day driving a 45x spike in perfume sales on a leading platform.
Notably, 86% of consumers discover new quick commerce brands via Meta platforms. This is powered by AI-driven personalization, which Apparao highlights as “Meta collapsing the shopping funnel from discovery to purchase. It’s not just about finding products—it’s about converting interest into action in moments.”
Meta’s tools like collaborative ads (“collab ads”), which allow brands to tap into the audience pools of quick commerce platforms, have become central to this success. “This integration enables brands to engage a consumer who’s already in the market, dramatically shortening the conversion loop,” says Apparao. Gen Z is leading the charge, with 87% discovering products through Meta and driving demand in categories like wellness, sportswear, and pet supplies.
E-Commerce Boom in Tier 2, Tier 3 Cities
While quick commerce dominates in urban areas, Tier 2 and Tier 3 cities represent the next frontier. The Meta study reveals that 68% of respondents in these regions discover products on social media, with 59% citing Instagram Reels and 57% mentioning influencers as their go-to discovery channels.
This localised engagement strategy is pivotal. “A regional creator speaking the language and vibe of their audience in say, Salem, Tamil Nadu, connects far better than a national influencer,” explains Apparao. She credits such hyper-localized approaches for the rapid growth of platforms in emerging markets.
In terms of purchasing patterns, fashion, beauty, and mobile phones lead the way, while categories like jewellery, large electronics, and home furnishings are seeing parity between online and offline sales. Messaging platforms also play a vital role, with 55% of users in these regions purchasing products through WhatsApp in the last year.
Meta’s Strategic Bet on E-Commerce and Quick Commerce
Meta’s aggressive push into e-commerce and quick commerce aligns with its recent earnings trajectory. In the third quarter of 2024, Meta Ads India reported a 24% YoY revenue growth, buoyed by the platform's success in driving product discovery and conversions. Globally, Meta’s ad business brought in $35 billion in Q3, with emerging markets like India contributing significantly to growth through innovative campaigns targeting local consumers.
Apparao elaborates on the synergy, remarking, “Our focus is on creating seamless shopping experiences. Whether it’s through AI-personalized ads, localized influencer campaigns, or conversational commerce on WhatsApp, our goal is to drive meaningful connections between brands and consumers.”
The broader industry paints a compelling picture of growth, as India’s e-commerce market is projected to reach $120 billion by 2025, up from $75 billion in 2022. Quick commerce, valued at $5.5 billion in 2023, is expected to grow at a CAGR of 32%, reaching $20 billion by 2027.
Tier 2 and Tier 3 cities account for nearly 60% of new online shoppers, driven by increasing smartphone penetration and affordable internet.
Meta’s insights show why these trends align with its strategic investments. For example, the company’s AI-driven ad campaigns and localised influencer outreach directly address the evolving demands of India’s emerging markets.
The Road Ahead: Innovation and Personalization
As the e-commerce and quick commerce industries continue to grow, Apparao emphasises the need for constant innovation. “Cultural moments and personalisation are key to creating lasting consumer habits,” she says. Whether it’s optimising gifting campaigns for the ongoing festive season or identifying convenience needs in underserved markets, platforms like Meta are poised to drive the next wave of digital commerce.
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