D2C shipments market in India set to reach $2.7 billion by 2028: Report

The D2C (direct-to-consumer) market in India is set to hit $2.2 to $2.7 billion by 2028, growing at 35-40 per cent (year-on-year) from 2023 to 2028, a new report said on Wednesday. According to strategy consulting firm Redseer Strategy Consultants, the annual D2C shipments have skyrocketed from 0.1 billion in 2019 to 0.6 billion in 2023. A significant portion of these shipments is attributed to the services of the 3PL (third-party logistics) providers, who play a major role in delivering superior customer service.

3PL providers offer tailored and comprehensive end-to-end logistics services, including warehousing, inventory management, shipment intelligence, and transportation. "3PL providers are integral to the value-chain of the 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”, said Kanishka Mohan, Partner, Redseer Strategy Consultants. The report highlighted how 3PL logistics players are innovating to meet the growing demands of new-age D2C brands. As per the report, 3PL providers are investing heavily in technology and infrastructure, offering accelerated delivery times, real-time tracking, non-delivery reports, and predictive analytics for returns.

They provide seamless cash-on-delivery (COD) solutions with swift remittance, typically within 48 hours, which is vital for the working capital of smaller brands. They help new-age firms expand into offline markets by providing integrated logistics and supply chain solutions such as warehousing, express part-truckload and full-truckload freight and streamlined distribution to brick-and-mortar stores, the report said.