DUBLIN--(BUSINESS WIRE)--The "India Intra-City Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The Indian Intra-City Logistics Market is expected to register a CAGR of more than 5.3% during the forecast period (2022-2027).
In India, the last-mile delivery sector is on an upward trend. Despite the fact that the country has been under lockdown for the past year, with only critical deliveries permitted, e-commerce shipments have increased from 814 million in 2018 to 1.36 billion in 2020. It is estimated that Intra-city logistics accounts for approximately 15- 20% of the road transport industry.
The Covid-19 pandemic crisis has accelerated the widespread adoption of online services. Notably, small and medium firms, which form the backbone of the Indian economy, continue to have a minimal online presence. It is believed that just 20% of small firms presently offer online services, leaving a big untapped market and limitless opportunities for the logistics sector to flourish. Intra-city logistics providers are becoming important for these small and medium-sized firms to reach and satisfy their customers.
Intra-city logistics providers, who typically deal with rapid and on-demand delivery requirements, have a high level of dedication to assuring same-day deliveries. As a result, the entire chain of operations is subject to demand variability. Orders may suddenly rise from one area of the city, necessitating swift identification and connection with a delivery person who is available. Innovative technology is the foundation of a system that efficiently meets the needs of demand and supply to provide a flawless function, as well as resource optimization and positive unit economics.
Key Market Trends
Demand for intra-city logistics from Tier-2 and Tier- 3 cities growing
E-commerce volume growth in India's tier 2 and 3 cities is surpassing that in tier 1 cities. Smaller Indian cities now account for a greater proportion of e-commerce sales. E-commerce growth in India's tier 2 and tier 3 cities is surpassing that of the country's tier 1 cities. The volume share of these smaller cities in India's e-commerce sector climbed to 46% in Q4 CY20, up from 32% in Q4 CY19. Furthermore, online spending per customer in tier 2 and tier 3 cities has increased, with these cities accounting for 43% of e-commerce sales value last quarter 2020, up from 26% year on year.
During the festival season, all major e-commerce brands saw a considerable increase in new clients from these cities. During its month-long festival sale in 2021, global e-commerce giant Amazon said that 79% of new buyers came from towns such as Ernakulam, Guntur, Krishna, Godavari, and others. During its month-long festival sale, value e-commerce giant Snapdeal reported a 91% increase in demand from Tier-3 cities compared to 2020. The company also added that Tier -3 cities accounted for 58% of all orders, while Tier-2 and Tier-1 cities accounted for 15% and 27% of all orders, respectively.
Growing e-commerce demand in Tier-2 and Tier-3 markets has more than doubled income for intra-city logistic start-ups like LetsTransport and COGOS, who provide logistic fleet (trucks, three-wheelers) to companies like Amazon, Flipkart, Grofers, and BigBasket. LetsTransport asserts that an increase in delivery to Tier-2 and Tier-3 markets has contributed significantly to the company's growth. Over the last year (2020), the company's revenue increased by more than 2x-3x, with tier-2-3 markets accounting for 50% of this increase.
Demand from D2C companies driving the intra-city logistics
The D2C model is becoming so popular in India, that Mamaearth only took four years to generate INR 100 crore income, whereas globally recognized beauty firms required 20 years. Companies such as Sugar and Mamaearth benefited greatly from the digital D2C model, resulting in exponential development. Established FMCG brands such as Himalaya, ITC, Hindustan Unilever, and others are experiencing severe competition from upstart D2C businesses such as Mamaearth, Pee Safe, Moms Co., and others.
The holiday season is the most profitable time for small, medium, and large merchants to generate sales, the need to meet rising demand becomes more pressing. Because demand patterns are good and sellers are aware of the items that are certain to see increased customer demand, i.e., seasonal inventory, they concentrate their efforts primarily on segregating inventory for easy order pickup and delivery. Small D2C sellers may lack the resources to manage end-to-end operations on their own. This is when they turn to third-party logistics and fulfillment companies for effective order administration, streamlined operations, and flawless shipment last-mile delivery. "Last mile" as the name suggests refers to the final stage of delivery which delivery remains a challenge. This is where efficient intra city logistics and last mile delivery services are gaining prominence.
Given the widespread popularity of online shopping, 3PL aggregators in India have come a long way. The majority of these firms provide full-service logistics solutions, such as inventory management, warehousing, shipping, and last-mile delivery. In fact, businesses like as Shiprocket, Shipway, Pickrr, and others, often known as D2C enablers, have assisted hundreds of firms in streamlining these procedures in order to scale up quickly. Growing D2C sector is creating more opportunities in intracity logistics and changing customer preferences with respect to shopping and delivery.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Technological Trends
4.3 Government Initiatives and Regulations
4.4 Investment Scenarios
4.5 Industry Supply Chain/Value Chain Analysis
4.6 Insights on the E-commerce Industry
4.7 Insights on same day delivery market
4.8 Impact of Covid-19 on market
5 MARKET DYNAMICS
5.4 Porter's Five Forces Analysis
6 MARKET SEGMENTATION
6.1 By Service
6.1.2 Warehousing and Distribution
6.1.3 Value-added Services
6.2 By City
7 COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
- FM Logistic India
- Lets Transport
- Cogos Technologies
- Ecom Express
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/fuw5m3
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