A recent report by Redseer Strategy Consultants has revealed that India’s e-commerce logistics industry is poised to exceed 10 billion shipments by the fiscal year 2028, with a minimum compound annual growth rate (CAGR) of 20%. Despite the increasing competition in the sector, Delhivery remains the leading player in the e-logistics space by a significant margin.
The report further indicates that there are several opportunities for growth and high-yield prospects available for e-logistics players, particularly in the direct-to-consumer (D2C) or large goods and non-e-commerce segments. In the next few years, D2C brands across channels are expected to witness an overall growth of 35% in gross merchandise value (GMV), with brand.com accounting for a significant portion of this growth.
According to the report, logistics players with customized and relevant offerings for D2C brands are well-positioned to capture a significant share of this high-growth segment, as well as enjoy a stronger yield profile in the future. Players who build robust capabilities and offerings to serve this demand effectively will be more resilient in the challenging times and better positioned for long-term market share and yield leadership, Mrigank Gutgutia, Partner, Redseer Strategy Consultants said.
The report also notes that D2C brands have the potential to generate $33 billion in GMV across all channels by the calendar year 2027, thereby providing a significant opportunity for logistics players who cater to this market segment.
The growth in India’s e-commerce logistics industry can be attributed to several factors, including increasing internet penetration, rising disposable income, and the growing adoption of online shopping by consumers. The government’s efforts to improve infrastructure and promote digitalization are also expected to drive growth in the industry.
The report also emphasizes the importance of technology and innovation in the e-commerce logistics sector, with players investing in automation, artificial intelligence, and robotics to improve efficiency and reduce costs.
Overall, the outlook for India’s e-commerce logistics industry appears promising, with substantial growth expected in the coming years as the country’s online retail market continues to expand. Logistics players who are agile and able to adapt to changing market trends are likely to emerge as leaders in this high-growth industry.
DON’T MISS IT: THE EVOLUTION OF SHARE TRADING; A JOURNEY THROUGH HISTORY
