India Direct-to-Consumer Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 8.00 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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India Direct-to-Consumer Logistics Market Analysis
The Indian Direct-to-Consumer logistics market is estimated to register a CAGR of more than 8% during the forecast period.
- Over the past few years, the D2C model gained traction in India due to the growth in e-commerce penetration, the rise in digital infrastructure, the growing millennial population, an increase in consumer tech awareness, and a growing number of D2C startups and their diverse offerings. However, the much-required push due to the Covid-19 outbreak helped the D2C sector reach a tipping point. A series of lockdowns to contain the pandemic, people's fear of going out (FOGO), and the social distancing mandate brought about a paradigm shift in consumers' mindset, urging them to opt for digital platforms. As a result, the D2C market is expected to grow exponentially in 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, and Hindustan Unilever 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 literally "cuts out" the middleman.
- Before the pandemic began, only a few direct-to-consumer companies raised money, approximately 2-3 companies per week on average. With COVID-19 spreading, companies started investing in the D2C models. Around 146 companies raised USD 500 million in the first half of 2020. With the change in consumer behavior due to COVID-19, more customers turned online to purchase the products. The need to meet rising demand becomes more important. But most D2C sellers may need more resources to manage end-to-end operations independently. It is when they turn to third-party logistics and fulfillment companies for effective order administration, streamlined operations, and flawless shipment last-mile delivery. It is where efficient logistics companies and last-mile delivery services are gaining prominence.
- Companies such as Shiprocket, Shipway, Pickrr, and others, D2C enablers, helped hundreds of enterprises streamline these procedures to expand swiftly. The growing D2C industry is expanding logistics potential and changing customer buying and delivery habits.
India Direct-to-Consumer Logistics Market Trends
Festive Season and Mega Sales Driving the Market
E-commerce marketplaces began distributing mega sales events throughout the year rather than focusing solely on Diwali or Dusshera festivals. D2C brands include events and promotions on their websites every fortnight or week, with higher discounts.
However, their share of sales events on online marketplaces increased. Industry experts say direct-to-consumer (D2C) brands grew nearly 200% in beauty, nutrition, and small electronics categories.
Many companies recorded profits during times of mega sales. For instance, D2C latex mattress brand Morning Owl said that on day one of the mega sales by the eCommerce platforms saw a 200% spike in business. With nearly 6 million shoppers, the D2C stores on the Shoptimize platform saw a whopping 182% increase in revenue during the Diwali festive sales in 2021. The massive growth in festive sales will further push the overall online retail GMV, which stood at USD 52 billion in 2021 and will grow 30% to USD 68 billion in 2022. While COVID-19 accelerated the shift to online shopping, the holiday season brought it ahead. In recent years, shoppers purchased on marketplaces, taking advantage of reasonable offers and sales.
The D2C brands aren't too shying away from giving out attractive discounts. The discounts, coupled with the customer's expectations for next-day or two-day delivery, keep the e-commerce industry players on their toes. While some D2C firms chose self-shipping their items, the vast majority relied on advanced logistics partners to deliver their orders to clients. As a result, they began seeking an ideal shipping partner who could provide them with a flawless logistical experience while saving them money. This year, the fashion category is expected to see robust growth driven by an increasing shopper base from Tier 2+ cities and first-time shoppers who generally tend to begin their online shopping journey with fashion.
Investment on D2C Startups Growing in India
India's direct-to-consumer (D2C) category experienced significant investment activity for the past few years as eCommerce market conditions matured and evolved. The relatively solid eCommerce infrastructure ecosystem in India, which includes eCommerce enablers, logistics, marketing, customer support, and other services, makes it easier for vertical or specialized eCommerce businesses to create new brands and build up. Indian D2C firms raised USD 783.7 million in the first seven months of 2021.
D2C fashion startups raised USD 336.5 million of the total funding in 2021 alone until July. Lenskart was a significant donor, raising USD 315 million in two offerings in 2021.
Beyond fashion, the direct-to-consumer (D2C) revolution is also reshaping the FMCG business. The amount of D2C FMCG businesses raised USD 33.5 million in 139 deals in 6 years. In 2021, such startups raised USD 321.3 million in total investment across 39 transactions. In 2021, Mamaearth and WOWSkin Science were prominent D2C FMCG firms that raised USD 50 million each.
Through a service fee model, Flipkart launched a program to identify and build digital-first brands on its platform. Under the Flipkart Boost program, the e-commerce giant will offer its expertise to early-stage brands in planning, advertising, cataloging, logistics, quality control, and mentoring. It will also assist them in approaching venture funds to raise capital.
India Direct-to-Consumer Logistics Industry Overview
The Indian D2C logistics market is competitive. The market is expected to grow during the forecast period due to massive investments from the government. The industry consists of many local and international players. Some companies include Delhivery, DHL eCommerce, Pickrr, Unicommerce, Shiprocket, etc.
India Direct-to-Consumer Logistics Market Leaders
Delhivery
DHL Ecommerce
Shiprocket
Unicommerce
Pickrr
*Disclaimer: Major Players sorted in no particular order
India Direct-to-Consumer Logistics Market News
- May 2023: Delhivery India's largest fully integrated logistics services provider, will invest around Rs 25 crore in Vinculum, a global software leader enabling omnichannel retailing for D2C enterprises, brands, brand distributors, and quick commerce companies, to strengthen its D2C offerings.
- July 2023: Myntra's D2C (Direct to Consumer) program is aimed at accelerating the growth and expansion of 200 D2C fashion and lifestyle brands based in India.
- August 2023: France-based third-party logistics company CEVA Logistics had signed an agreement to acquire a 96 per cent stake in Mumbai-based Stellar Value Chain Solutions from an affiliate of US-based private equity firm Warburg Pincus and other shareholders.
India Direct-to-Consumer Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Government Regulations and Initiatives
4.3 Technological Trends in the Market
4.4 Insights into the E-commerce Industry
4.5 Insights into the Courier, Express, and Parcel Industry (CEP)
4.6 Industry Value/Supply Chain Analysis
4.7 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 Growth of digital infrastructure and rise in the number of millennials
5.1.2 Higher internet penetration
5.2 Restraints
5.2.1 Supply Chain Disruptions
5.2.2 Competition from established brands
5.3 Opportunities
5.3.1 Brands following an omnichannel strategy and providing services such as hassle-free return and exchange policies
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By End user
6.1.1 Fashion
6.1.2 Consumer electronic
6.1.3 Beauty and Personal Care
6.1.4 Home decor
6.1.5 Other end users
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Delhivery
7.2.2 DHL E-commerce
7.2.3 Shiprocket
7.2.4 Unicommerce
7.2.5 Pickrr
7.2.6 Shipyaari
7.2.7 Shipway
7.2.8 Shadowfax
7.2.9 Gati Ltd
7.2.10 Ecom Express*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
India Direct-to-Consumer Logistics Industry Segmentation
D2C/Direct-to-Consumer (or Consumer-Direct) is a business model for manufacturers, retailers, or distributors to market, sell, and ship their products directly to consumers without relying on traditional brick-and-mortar storefronts or other intermediaries.
India's D2C Logistics market is segmented by end-user (fashion, consumer electronics, beauty, personal care, home decor, and other end-users). The report offers market size and forecasts for India's D2C Logistics market in value (USD) for all the above segments.
| By End user | |
| Fashion | |
| Consumer electronic | |
| Beauty and Personal Care | |
| Home decor | |
| Other end users |
India Direct-to-Consumer Logistics Market Research FAQs
What is the current India Direct-to-Consumer (D2C) Logistics Market size?
The India Direct-to-Consumer (D2C) Logistics Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in India Direct-to-Consumer (D2C) Logistics Market?
Delhivery, DHL Ecommerce , Shiprocket, Unicommerce and Pickrr are the major companies operating in the India Direct-to-Consumer (D2C) Logistics Market.
What years does this India Direct-to-Consumer (D2C) Logistics Market cover?
The report covers the India Direct-to-Consumer (D2C) Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Direct-to-Consumer (D2C) Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India D2C Logistics Industry Report
Statistics for the 2024 India D2C Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India D2C Logistics analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
