A recent industry report by Redseer Strategy Consultants has revealed that fully-integrated logistics provider Delhivery is India’s foremost choice for direct-to-consumer (D2C) brands seeking top-tier technology, swift, and dependable delivery services across an extensive network of pin codes. The report dives deep into the burgeoning landscape of Indian D2C brands, revealing a 40% CAGR projected for 2022-2027. This astounding figure stands at over 3X the growth rate of the broader retail market and 1.6X that of the ecommerce sector during the same period.
By 2027, the Indian D2C market is anticipated to reach a staggering GMV of US$30-35 billion, with up to three billion shipments in the forecast. A direct beneficiary of this market expansion are third-party logistics providers (3PLs). Highlighting the pivotal role of 3PLs, Mrigank Gutgutia, Partner at Redseer, commented, “3PL solutions tie in well with the D2C segment as demand varies across cities/regions and the required logistics investment is on the higher side. Brands need reliable logistics partners with a wider reach across India to ensure consistency of experience.” Among them, Delhivery stands out for its superior tech, and quick and reliable delivery across a larger set of pincodes. Delhivery’s prominence in this landscape is a testament to its commitment to superior technological solutions and a steadfast dedication to meeting the diverse needs of D2C brands.
As the D2C market continues to evolve, Delhivery remains at the forefront, offering tailored logistics solutions that empower brands to thrive in this dynamic ecosystem. Redseer Strategy Consultants’ comprehensive report, compiled with inputs from over 60 emerging D2C brands in India, sheds light on the crucial factors that contribute to the success of 3PL players serving D2C brands. The report deciphers the expectations and demands that these innovative brands place on their 3PL partners. For instance, in the fashion sector, return management is paramount for most brands. However, smaller D2C brands prioritise low-cost shipments and high shipment protection to mitigate losses due to damage. In the beauty and personal care category, a cold-storage supply chain is essential due to the specific nature of the products, along with the ability to handle fragile items.
The mid-large BPC brands also compete on reach and quick delivery, making these aspects more crucial for them. In the home and general merchandise space, reliable insurance with hassle-free claims is a major requirement, along with a high degree of shipment protection to prevent damages. In packaged foods and beverages due to lower margins, affordable shipping is critical. Additionally, brands require quick delivery in cities, necessitating dense networks to facilitate rapid delivery. Mrigank summarises, “The keys to success for 3PLs vary widely, depending on the category of D2C players. However, tech-enabled reliability, shipment protection and affordable pricing are what D2C brands in India seek the most, with pan-India reach being a fairly common expectation.”
