India’s D2C Shipments Set to Hit $2.7 Billion by 2028: Redseer

A recent report by  Redseer Strategy Consultants on the evolving logistics landscape for new-age direct-to-consumer (D2C) brands reveal that the D2C brands in India have experienced phenomenal growth, outpacing traditional retail markets. 

As per the report, the annual D2C shipments have surged from 0.1 billion in 2019 to 0.6 billion in 2023, with projections suggesting the market could reach USD 2.2-2.7 billion by 2028, maintaining an annual growth rate of 35-40% from 2023 to 2028.

A substantial portion of this growth is attributed to the services provided by 3PL players, who have been instrumental in delivering enhanced customer service. 

These providers offer tailored, end-to-end logistics solutions, including warehousing, inventory management, shipment intelligence, and transportation. Such comprehensive services are crucial for emerging brands, enabling them to access advanced logistics infrastructure without heavy capital investment.

To understand the logistics needs of early-stage D2C brands, Redseer Strategy Consultants conducted over 60 interviews with emerging brands across India. The survey highlighted a growing trend of these brands partnering directly with 3PL service providers, appreciating their customized solutions. This collaboration allows young brands to leverage 3PL expertise, adapt to evolving logistical demands, and focus on core business activities, thereby strengthening their market presence.

The report also emphasized how 3PL logistics providers are innovating to meet the rising demands of new-age D2C brands. Key initiatives include:

  • Investments in Technology and Infrastructure: Enhanced delivery times, real-time tracking, non-delivery reports, and predictive analytics for returns.
  • Seamless COD Solutions: Quick remittance within 48 hours, crucial for the working capital needs of smaller brands.
  • Support for Offline Market Expansions: Integrated logistics and supply chain solutions, including warehousing, express part-truckload and full-truckload freight, and efficient distribution to physical stores.
  • Consistent Service Levels: Prompt issue resolution and personalized account management to streamline the logistics process.

“Third-party logistics (3PL) providers are integral to the value chain of new-age D2C brands. They are continuously innovating to address the unique needs of these brands, fostering partnerships from the early stages of the brand journey,”

Kanishka Mohan, Partner at Redseer Strategy Consultants.

Within the 3PL logistics landscape, Redseer highlighted key factors such as brand and customer experience and operational efficiencies, which are crucial for new-age brands when selecting their logistics partners. Notably, Delhivery and Bluedart emerged as leaders, with Delhivery excelling in customer experience and offering comprehensive full-stack solutions.

Leave a Reply

Your email address will not be published. Required fields are marked *