Redseer projects the D2C shipments market to grow to $2.7 billion by 2028.
The latest report from Redseer Strategy Consultants anticipates the direct-to-consumer (D2C) shipments market will escalate to $2.2-2.7 billion by 2028, marking an annual growth rate of 35-40 percent from 2023 to 2028. This surge follows an impressive climb from 0.1 billion shipments in 2019 to 0.6 billion in 2023, largely driven by third-party logistics (3PL) providers, who have been pivotal in enhancing customer service.
3PL providers offer a comprehensive suite of logistics services, including warehousing, inventory management, shipment intelligence, and transportation. These tailored solutions have become essential for emerging brands, providing access to advanced logistics infrastructure without hefty capital investments.
Redseer’s survey of approximately 60 emerging Indian brands highlights a trend of direct partnerships with 3PL providers, recognizing their ability to adapt to specific logistical needs. This collaboration allows brands to focus on core activities while leveraging 3PL expertise to maintain a competitive edge.
Kanishka Mohan, Partner at Redseer, underscores the critical role of 3PL providers in the value chain of new-age D2C brands. He notes their continuous innovation to meet the unique needs of these brands, fostering early-stage partnerships.
Redseer’s report emphasises that brand and customer experience, along with operational efficiency, are key factors for new-age brands in selecting logistics partners. Delhivery and Bluedart are noted for their overall performance, with Delhivery excelling in customer experience due to its comprehensive service offerings.
