Market Size of India Direct-to-Consumer (D2C) Logistics Industry
Study Period | 2019 - 2028 |
Base Year For Estimation | 2021 |
Forecast Data Period | 2024 - 2028 |
Historical Data Period | 2019 - 2020 |
CAGR | > 8.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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India Direct-to-Consumer (D2C) Logistics Market Analysis
The Indian Direct-to-Consumer logistics market is estimated to register a CAGR of more than 8% during the forecast period. The D2C model is becoming increasingly popular in India. 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. Many companies are turning to this model because the D2C e-commerce model quite literally "cuts out" the middleman.
Before the pandemic began, very few direct-to-consumer companies raised money, approximately 2-3 companies per week on average. With the spread of COVID-19 companies have started investing in the D2C models, and around 146 companies have raised a total of USD 500 million in the first half of 2020. With the change in consumer behavior due to COVID-19, more customers are turning online to purchase the products. The need to meet rising demand becomes more important. But most 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 fulfilment companies for effective order administration, streamlined operations, and flawless shipment last-mile delivery. This is where efficient logistics companies and last mile delivery services are gaining prominence.
In fact, companies such as Shiprocket, Shipway, Pickrr, and others, D2C enablers, have helped hundreds of enterprises streamline these procedures in order to expand up swiftly. The growing D2C industry is expanding logistics potential and changing customer buying and delivery habits.