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.
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:-
