India’s e-commerce logistics industry saw total shipments reach 4 billion in FY23, riding on the rise of direct-to-consumer (D2C) brands and e-commerce penetration in Tier 2+ towns, according to a report by a leading strategy consulting firm.
What Happened? According to Redseer Strategy Consultants, the number of e-commerce parcels shipped is projected to surpass 10 billion within the next five years.
D2C brands across channels are expected to account for 35% of overall e-commerce gross merchandise volume (GMV) in the coming years, generating $33 billion of GMV by 2027, notes Redseer. This high-growth segment presents an opportunity for logistics players with relevant and customized offerings for D2C brands.
Currently, Delhivery is the largest e-commerce logistics player in India and more insulated from larger e-commerce pressures than its peers due to its substantial exposure to non-e-commerce clients.
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Mrigank Gutgutia, a partner at Redseer notes that e-logistics players can find opportunities with high growth and high yield in various segments, including D2C, large goods, non-e-commerce, and wider supply chain management services.
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He added that companies that develop strong capabilities and offerings to cater to this demand will be more resilient in challenging times and will have a better chance of gaining long-term market share, despite the funding difficulties faced by the e-commerce industry.
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