Rising Internet Penetration: Internet penetration in India is growing rapidly; it has reached close to 700 Mn in 2020 from 481 Mn in 2017. For the first time, India has more internet users in rural areas than in urban cities. A report by the Internet & Mobile Association of India (IAMAI) and Nielsen showed rural India has 10% more Internet Users than urban India, as of November 2019. This has translated into boost in Online Shopping Orders from Rural India leading way for growth of the E-commerce Logistics Industry in the Region.
Impact
of COVID on E-commerce Logistics Market: COVID-19 led to a
rise in the number of first-time-ecommerce-users in India, who had been so far
inhibited to shop online. Demand for Essential Products such as FMCG or Pharmaceutical
in comparison to other products witnessed a rise, leading to decline in rate of
return/replacement shipments. Moreover, payment using cash on delivery mode
decreased drastically owning to risk of infection.
New
Technical Innovations and Business Models: Entry of Logistic
Aggregators to help SMEs by catering to the low shipment demand at competent
prices, emergence of innovative technologies such as secured lockers to reduce
rate of return of shipments and digital addresses to ease last mile delivery
services in a country like India with a poor mapping system proved to be highly
helpful in catering increased consumer expectations regarding fast delivery
services and higher availability of diverse products online.
Government
Initiatives for the Industry growth: The introduction of the Goods and Services Tax (GST) in
2017 led to a positive effect on the E-Commerce logistics industry as it eased
the movement of goods across state borders. In 2018, Central Government allowed
100%
Foreign Direct Investment in market place model and 25% in Inventory Based
Model. Moreover, various states such as Haryana, Punjab, West Bengal and more
increased Government support in the start ups by providing them with rental/lease
subsidy, they also increased their investment in E-commerce warehousing
projects and several other segments of the Industry.
The
report titled "Indian E-commerce Logistics
Industry Outlook to 2025- Driven by Changing Shopping Patterns and Increasing
Demand of Fast Delivery Services” by Ken Research suggested
that the E-commerce Logistics Industry
of India is expected to grow in the near future due to increased demand from
Tier 2 and below cities owing to increased internet penetration in these areas.
Moreover, changing shopping patterns, increasing requirement of fast delivery services
and usage of AI, Big Data analytics, and Blockchain Technology to improve the
customer experience will also play major role in the industry’s future growth. The
Industry is expected to register a positive five year CAGR of 23.6% in terms of
revenue during the forecast period FY’2020-FY’2025F.
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
For More Information on the research report, refer to below
link:-
India E-Commerce Logistics Market
Related Reports:-
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