Delhivery, a fully-integrated logistics provider, has secured its position as the preferred partner for direct-to-consumer (D2C) brands in India, according to a recent report by Redseer Strategy Consultants. The report delves into the rapidly growing landscape of Indian D2C brands and forecasts an astonishing 40% Compound Annual Growth Rate (CAGR) for the period 2022-2027. This remarkable figure is more than triple the growth rate of the wider retail market and 1.6 times that of the e-commerce sector during the same timeframe.
By 2027, the Indian D2C market is expected to reach an impressive Gross Merchandise Value (GMV) of US$30-35 billion, with a forecast of up to three billion shipments. The report underscores the crucial role of third-party logistics providers (3PLs) in this expansion. Mrigank Gutgutia, Partner at Redseer, emphasized the significance of 3PLs, stating, “3PL solutions align well with the D2C segment as demand varies across cities/regions, and the required logistics investment is substantial. Brands require dependable logistics partners with an extensive reach across India to ensure a consistent customer experience.”
Among 3PL providers, Delhivery has emerged as a standout choice due to its advanced technology, speedy, and reliable delivery services that cover a wide range of PIN codes. Delhivery’s prominence in this sector reflects its commitment to cutting-edge technological solutions and its unwavering dedication to meeting the diverse requirements of D2C brands.
As the D2C market continues to evolve, Delhivery remains at the forefront, offering tailor-made logistics solutions that empower brands to thrive in this dynamic ecosystem.
Redseer Strategy Consultants’ comprehensive report, compiled with insights from over 60 emerging D2C brands in India, sheds light on the critical factors contributing to the success of 3PL providers serving D2C brands. The report deciphers the expectations and demands of these innovative brands from their 3PL partners.
For instance, in the fashion sector, return management is of paramount importance for most brands. Smaller D2C brands prioritize cost-effective shipments and robust shipment protection to mitigate losses from damages. The beauty and personal care category necessitates a cold-storage supply chain due to the specific nature of products, along with the ability to handle fragile items. Medium to large beauty and personal care brands compete based on reach and quick delivery, making these aspects essential. In the home and general merchandise sector, reliable insurance with hassle-free claims is a major requirement, alongside a high degree of shipment protection to prevent damages. In packaged foods and beverages, affordable shipping is crucial due to lower margins. Brands also demand rapid delivery in cities, requiring dense networks to facilitate swift delivery.
Mrigank summarized, “The keys to success for 3PLs vary widely, depending on the category of D2C players. However, tech-enabled reliability, shipment protection, and competitive pricing are the most sought-after attributes by D2C brands in India, with a comprehensive pan-India reach being a common expectation.”
Redseer has also included a 3PL partner map in the report, categorizing them into different cohorts based on the preferences of D2C brands
