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Wednesday, February 28 2024
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Indian direct-2-consumer market set to reach 3 bn shipments by 2027

Indian direct-2-consumer market set to reach 3 bn shipments by 2027
Photo Credit : IANS

New Delhi: The Indian direct-2-consumer (D2C) market is projected to reach a gross merchandise value (GMV) of $30-35 billion by 2027 with up to 3 billion shipments, and third-party logistics providers will be the direct benefactors, a report showed on Friday.

This is a compound annual growth rate (CAGR) of around 40 per cent, which is more than three times that of the broader retail market and 1.6 times of the e-commerce market for the same period, according to a report by Redseer Strategy Consultants.

One of the direct benefactors of the D2C market growth are third-party logistics providers (3PLs).

In 2022, the number of D2C shipments stood at approximately half a billion, and their projections indicate a substantial increase to 3 billion D2C shipments by 2027.

“3PL solutions tie-in well with the D2C segment as demand varies across cities/regions and the required logistics investment is on the higher side. Brands need reliable logistics partners with a wider reach across India to ensure consistency of experience,” Mrigank Gutgutia, partner at Redseer.

Among the 3PL players, Delhivery followed by Bluedart stand out as the preferred partner by brands looking for superior tech, quick and reliable delivery across a larger set of pin codes.

Players like Shadowfax and Xpressbees are used by brands where low-cost shipping is a primary criterion, with Shadowfax’s reach being more metro focused.

Ecomm express is known for wider reach with a larger focus on tier 2+ cities, according to the report.

“The keys to success for 3PLs vary widely depending on the category of D2C players. However, tech-enabled reliability, shipment protection and affordable pricing are what the D2C brands in India seek the most, with pan-India reach being a fairly common expectation,” Gutgutia said.

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