Indian Economy News

India's e-commerce logistics space to exceed 10 billion parcels by FY28: Redseer

According to a report by Redseer Strategy Consultants, India's e-commerce logistics market would surpass 10 billion parcels by FY28 as it grows in Tier 2 plus cities, new categories, and direct-to-consumer (D2C) companies. In FY23, e-commerce logistics' total shipments (forward and reverse) increased to 4 billion. (excluding hyperlocal shipments). In this pie, the shares of in-house logistics and third parties were about equal.

According to the Redseer research, "Over the course of the year, the industry witnessed intensifying competitive trends from smaller incumbents with yields also being challenged." The whole e-commerce logistics opportunity is expected to increase at a minimum CAGR of 20% to comfortably reach 10 billion parcels by FY28 on the back of continuous e-commerce development, according to the report. Despite this, the market is still a compelling long-term investment.

D2C has become a rapidly expanding area of e-commerce. According to Redseer, D2C companies will have a 35% increase in overall GMV (gross merchandise value) over the next several years, with brand.com contributing significantly to this rise. By CY27, D2C brands are anticipated to produce a combined US$ 33 billion in GMV over all channels.

According to Redseer, logistics providers with pertinent and tailored offerings for direct-to-consumer (D2C) firms are well-positioned to gain market share in this rapidly expanding industry. In the future, they are anticipated to have a greater yield profile.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.