The expansion of the e-commerce sector in India, owing to the rising urbanization rate, surging disposable income, and changing consumption patterns of customers, is creating a huge requirement for retail logistics solutions. Besides, the vast customer base of India, escalating internet penetration, and large-scale adoption of smartphones are also strengthening the e-commerce industry. Moreover, the increasing demand from customers for prompt delivery of essential goods at their doorsteps is leading to the launch of efficient logistics services.
Apart from this, the rising adoption of digital freight brokerage in logistics services will boost the Indian retail logistics market growth during 2020–2030.
At present, retail logistics services are mostly available in the tier-1 cities of India, including Delhi, Mumbai, Kolkata, Hyderabad, Chennai, and Bangalore. This is due to the presence of a large customer base in these cities and the high purchasing power of the customers here. According to the 2011 census, the population of the National Capital Territory (NCT) of Delhi, Mumbai, Kolkata, Hyderabad, Chennai, and Bangalore was 16.7 million, 18.4 million, 14.1 million, 7.7 million, 8.6 million, and 8.5 million, respectively.
The retail sector uses the airway, waterway, and roadway means to transport goods across India. In recent years, most of the logistics activities in the country have been carried out via roadways on account of the hefty inflow of investment in the Indian freight trucking industry, including in startups, which has led to the development of new and advanced retail logistics solutions. The extensive road connectivity in India makes it an affordable and convenient option for goods transportation. As of March 31, 2019, the total length of highways in India was 132,500 km.
Moreover the ongoing projects of the Ministry of Road Transport and Highway also increase the feasibility of roadways as a transport mode. For instance, Under Bharatmala Pariyojana. 26,000 km of economic corridors are being constructed. Other initiatives by the Government of India include the North–South and East–West (NS–EW) Corridors and Golden Quadrilateral (GQ). All the three corridors are expected to ferry the majority of the road freight traffic on Indian roads.
Companies involved in the development of advanced logistics solutions for retail freight include First Flight Couriers Ltd., Gati Ltd., Blue Dart Express Ltd., FedEx Corp., Transport Corporation of India Ltd., DHL International GmbH, and All Cargo Logistics Ltd. These players in the Indian retail logistics market offer online and offline services.
Thus, the bolstering e-commerce industry and burgeoning demand for digital freight brokerage services will lead to the adoption of retail logistics solutions in India.
