The direct-to-consumer (D2C) market in India is expected to reach $2.2 to $2.7 billion by 2028, growing at a rate of 35-40 per cent annually from 2023 to 2028, as per a recent report.
According to strategy consulting firm Redseer Strategy Consultants, annual D2C shipments soared from 0.1 billion in 2019 to 0.6 billion in 2023.
A substantial portion of these shipments is credited to the services offered by third-party logistics (3PL) providers, which play a crucial role in delivering exceptional customer service.
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3PL providers deliver customized and complete end-to-end logistics solutions, encompassing warehouse management, inventory control, shipment tracking, and transportation services.
“They providers play a crucial role in the value-chain of modern D2C brands. They constantly innovate to meet the distinct requirements of these brands, cultivating partnerships from the inception of the brand journey,” stated Kanishka Mohan, Partner at Redseer Strategy Consultants.
Innovative Strategies for D2C Brands
The report emphasized the innovative strategies employed by 3PL logistics companies to fulfill the increasing needs of modern D2C brands. According to the report, these providers are making significant investments in technology and infrastructure to provide faster delivery, real-time tracking, non-delivery reports, and predictive analytics for returns.
They offer seamless cash-on-delivery (COD) solutions with rapid remittance, usually within 48 hours, essential for the working capital of smaller brands. Additionally, they aid new-age companies in expanding into offline markets by offering integrated logistics and supply chain solutions, including warehousing, express part-truckload and full-truckload freight services, and efficient distribution to brick-and-mortar stores, as per the report.
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