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India’s e-commerce logistics market to reach 10 bn parcels by FY28: Report
MUMBAI: The e-commerce logistics market in India, which transported more than 4 billion packagesinFY23,isexpectedtogrowto 10 billion parcels by FY28, mostly as a result of new categories, D2C brands and the ongoing growth of tier-2 and tier-3cities,accordingtoareport.
The market is an attractive longterm bet, with the overall e-commerce logistics opportunity to grow at a minimum compounded annual growth rate (CAGR) of 20 per cent to exceed 10 billion parcels by FY28 on the back of steady e-commerce growth, the report stated.
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Redseer Strategy Consultants in its latest report said the Indian e-logistics market will see meaningful growth in FY23. Total shipments (forward + reverse) for e-commerce logistics grew tomorethan4billioninFY23(excluding hyperlocal shipments). Within this pie, in-house logistics and third-party playershadaroughlyequalshare.
“Despite funding headwinds in the e-commerceandinternetsectors,there are multiple pockets of high growth and high yield opportunities available for elogistics players, be it in D2C or large goods, non-e-commerce segments like C2C, PTL/FTL and FTL, or wider SCM services. Players who build robust capabilities and offerings to serve this demand effectively will fundamentally be more resilient in these challenging times and will be better positioned for long-term market share and yield leadership,” said Mrigank Gutgutia, Partner,RedseerStrategyConsultants.
D2C as an opportunity
D2C emerged as a strong growth segment within e-commerce. D2C brands across channels are expected to grow their overall GMV by 35 per cent in the next few years, with brand.com accounting for a significant share of this growth. A total of $33 billion in GMV is expected to be generated from D2C brands across all channels by CY27. The report considers D2C’s definition here to refer to online-first new-age brands fromIndianplayers.
As such, logistics players with relevant and customised offerings for D2C brands are well positioned to capture market share in this highgrowth segment as well as have a strongeryieldprofilegoingforward.
