The
biggest factor fuelling the growing demand for retail logistics in India is the
flourishing e-commerce sector in the country. Since the last few years, there
has been a huge rise in the e-commerce sector in India, mainly on account of
the soaring urbanization, rising disposable income of people, and changing
consumption habits of consumers. The consumers are increasingly preferring the
doorstep delivery of essential goods in the country, which is boosting the
development of logistics services. The Indian online retail market is currently
valued at $20.0 billion and this number is expected to shoot-up in future.
Due to the above-mentioned
factor, the Indian retail logistics market is predicted to demonstrate
huge growth during the forecast period (2020–2030). In India, the retail
logistics solutions are provided through online and offline methods. Of these,
the offline retail logistics solutions are expected to register faster growth
in adoption during the forecast period. This is mainly ascribed to the thriving
e-commerce industry, rising internet penetration, and mushrooming number of
smartphone users in the country. Moreover, the increasing popularity of online
retailing will further boost the adoption of online retail logistics solutions
in the country.
One of the
biggest trends presently being witnessed in the Indian retail logistics
market is the rising incorporation of digital freight brokerage for
logistics services. Due to the adoption of digital freight brokerage services,
the on-demand delivery of goods is now possible in several regions. In addition
to this, these digital freight brokerage services enable the real-time tracking
and monitoring of transported goods, thereby enhancing the security in
transportation and reducing the risk of loss of products in transit.
In India,
the retail logistics solutions and services are widely used in tier-1, tier-2,
and tier-3 cities. Amongst these, the tier-1 cities of the country such as
Delhi, Mumbai, Bangalore, Kolkata, Chennai, and Hyderabad are observing
escalating demand for retail logistics solutions and services. The main factors
responsible for the growth of these services in the tier-1 cities are the
presence of a huge consumer base and the rising purchasing power of the people
residing in these cities as compared to the people living in the tier-2 and
tier-3 cities.
Hence, it can be
undoubtedly said that owing to the thriving e-commerce sector in the country,
the demand for retail logistics services will boom in India over the next few
years.
