Branded retail – both traditional and new age – will account for over 50 percent of the total retail market, unlocking a $1+ trillion opportunity from brands, which is almost 4x of today, according to the latest report from Redseer.
The report, titled Delivering the future: How new-age logistics is transforming brand success, looks at how the logistics sector, “particularly third-party logistics (3PL) providers, is becoming indispensable in navigating the increasingly complex distribution networks of brands and delves into the complexities of distribution networks and the technological innovations reshaping logistics operations.”
E-commerce is also set for remarkable growth, with a minimum $100-120 billion incremental opportunity projected over the next five years, driven by multiple constructs including traditional e-commerce (across models like value commerce, vertical commerce and same day delivery) along with quick commerce and brand.com, the report added.
“Brand.com is expected to grow to >$20 billion in GMV by FY29, given the continued importance of the channel and brand investments made therein. Further, the rise of Tier 2+ city consumers is also going to share the consumption landscape dramatically for brands and marketplaces alike.”
Mrigank Gutgutia, Partner, Redseer Strategy Consultants says: “3PL providers are an important pillar for retail and e-commerce growth in India. Brands and 3PL providers must work collaboratively to address the rising complexities of multichannel distribution, ensuring consistent and seamless customer experiences across channels and geographies and scalable operations.
“They are key to enabling brands to scale effectively. Their ability to offer services like express parcel delivery, hyperlocal fulfillment and seamless integration with brand operations ensures timely and reliable delivery. Leading 3PLs are setting benchmarks by providing extensive pin-code coverage, advanced supply chain technology and customisable solutions for brands across categories.”
3PL providers play a vital role in meeting rapid delivery timelines, managing returns, and ensuring consistent customer experiences across channels. Annual logistics spending by brands is projected to exceed $50 billion by FY29 – almost twice that of FY24, underscoring the importance of efficient supply chain management, the report added.
