High Internet Penetration owing to strong
government initiatives coupled with reducing prices of smart phones and data plans
by telecom service providers has led to a drastic increase in the number of
Online shoppers in India.
The E-commerce Logistics sector in India is in late growth stage and has evolving as an organized market structure. The Industry has flourished due to changing
Consumer shopping preferences from physical stores to online market places from
the comfort of their homes. The E-commerce Logistics Industry has grown at a
CAGR of 24.3% on the basis of revenue and a CAGR of 27.4% on the basis of
number of shipments over the period FY’2015-FY’2020. Major growth drivers of
the Industry are higher internet penetration, increase in number of Smartphone
users, increasing propensity to purchase online, growing demand from Tier 2 and
below cities, new technological innovations, rising consumer expectations for
fast delivery services and more.
India E-commerce Logistics Industry
Segmentations
By
Domestic/International Shipments: E-commerce
Logistics market of India is skewed towards Domestic Shipments. For International Shipments,
Indian merchants prefer mostly selling online to countries such as US, UK,
India, Russia and Israel.
By Type of
Player: In House Logistic
players such as ATS, E-kart etc. generate larger Revenue share in comparison
with third party logistic players such as Blue Dart, FedEx etc. in India owing
to larger preference for In-house logistics due to economies of scale.
By Product
Category: Electronics (Mobile phones,
Large Appliances, etc.) and Apparel (Clothing, Accessories, Foot wares, etc.)
comprise the largest market share in E-commerce Logistics Industry of India.
While electronics have the least return rate, products under the Apparel
category have highest rate of return.
By Delivery
Time: Majority of e-commerce
shipments in India take two-four or more days to deliver. Especially product
categories like furniture, large appliances and more take greater time to reach
consumers in comparison to other products such as Food and Beverages, Apparels,
etc.
By Cities: Majority of online demand in India comes from Metro and Tier 1 cities
owing to large internet penetration in these areas. Delhi/NCR, Bangalore and
Mumbai are the top three cities with largest shipments in India. Tier 2 and
lower Cities is the new emerging segment in the country and will see a high
growth basis Shipments delivered in next five years in India.
By Payment
Mode: Most of the people in India
still prefer to pay cash on Delivery rather than use prepaid services like
digital wallets. People residing in Metro and Tier 1 cities usually prefer
prepaid shipments while Tier 2 and below population still have COD shipments.
By Product
Return Rate: Indian
population still returns/replaces many of its products bought online due to
most common reasons such as wrong item received or product not matching.
Clothing, Footwear, etc. are the products with highest rate of return in India.
Competition Overview
The E-commerce Logistics Industry of India is
quite concentrated with presence of 10-12 major players in the market. Top 2 players namely E-Kart and ATS
captures majority of the revenue share. Companies in this space battle against
each other to acquire and retain clients, expand geographical presence, expand
service offering and improve unit economics to increase margins. Worth of Mouth
and Reputation play an important role in expanding client base in this industry. Delivery Cost,
Delivery Time, Network Coverage, Brand Value, Technology Stack, Success Rate
are some of the competing parameters each company focuses upon to gain customer
trust.
Future Growth
The E-commerce Logistics Industry is expected
to flourish in India with rising demand from Tier 2 and below cities (owing to
higher internet penetration) and increasing consumer expectations for fast
delivery services. This industry is expected to witness a CAGR of 23.6% in
terms of revenue during the forecast period FY’2020-FY’2025F. Ongoing
technological disruptions such as Monitored Robots, Drones, Inbuilt RFID, GPS,
IoT, telematics and more which help in tracking Inventory and deliver products
on time will gain higher traction in future. Expansion of Fulfilment Centres in
Tier 2 and below cities will increase to better serve the population in these
areas.
Key Target Audience:-
E-commerce Companies
Third Party Logistic
Companies
Potential Market
Entrants
E-Retailers
Time Period Captured in the Report:-
Historical Period – FY’2015-FY’2020
Forecast Period – FY’2020-FY’2025F
Companies Mentioned:-
ATS
E-Kart
Delhivery
Ecom Express
Bluedart
Xpressbees
DTDC-Dotzot
Shadowfax
Safeexpress
United Parcel Service
Gati
Go-Javas
DHL
Fedex
Aramex
Key Topics Covered in the Report:-
India E-commerce
Logistics Industry Market Size by Revenues and Number of Shipments
India E-commerce
Warehousing Industry
Trends and Development
governing the Industry
Operating Model in
E-commerce Logistics Market
Government Initiatives
to boost the E-commerce Logistics Industry
India E-commerce
Logistics Industry Market Segmentation basis Domestic /International Shipments,
Type of Logistics Player, Major Product Categories, Delivery Time, Cities,
Payment Mode and Product Return Rate
Challenges faced by
India E-commerce Logistics Industry
COVID Impact on India
E-commerce Logistics Industry
Cost Component
Analysis of the Industry
Investment Analysis
Cross Comparison of
Major Players basis Operational and Financial Parameters
Cross Comparison of
Major Players basis Business Landscape
Cross Comparison of
Major Players based on Strength and Weaknesses
Future Technological
Disruptions in the Industry
Analyst
Recommendations
For More Information on the research
report, refer to below link:-
India E-Commerce Logistics Market
Related Reports:-
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