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Indian domestic D2C market poised for growth: Redseer Report

The Indian domestic Direct-to-Consumer (D2C) market is projected to experience significant growth, reaching a Gross Merchandise Value (GMV) of $30-35 billion by 2027, accompanied by up to 3 billion shipments, with third-party logistics (3PL) providers playing a vital role in this expansion, according to a report by Redseer Strategy Consultants.

Delhivery, India’s largest fully integrated logistics services provider, has emerged as the preferred partner for D2C brands seeking advanced technology and reliable, swift deliveries across a broader range of postal codes, followed by Blue Dart. Other players like Shadowfax and Xpressbees cater to brands with cost-efficient shipping needs, with Shadowfax concentrating more on metropolitan areas.

Redseer Strategy Consultants compiled this report based on inputs from over 60 emerging D2C brands in India, aiming to understand the key success factors for 3PL providers serving D2C brands and decoding the expectations these brands have from their 3PL partners.

The report highlights that the Indian D2C market is still in its early stages. With brand creation becoming more accessible and incentivized, the market is expected to achieve a GMV of $30-35 billion by 2027, representing a Compound Annual Growth Rate (CAGR) of approximately 40% for 2022–2027. This growth rate is more than three times that of the broader retail market and 1.6 times that of the eCommerce market for the same period. In 2022, there were approximately 0.5 billion D2C shipments, and the report predicts a substantial increase to 3 billion D2C shipments by 2027.

Mrigank Gutgutia, a partner at Redseer, emphasized the pivotal role of 3PL providers, stating, “3PL solutions are well-suited for the D2C segment because demand varies across cities and regions, and the required logistics investment is on the higher side. Brands need reliable logistics partners with a broader reach across India to ensure a consistent experience.”

The report reveals that D2C brands’ expectations from 3PL partners vary based on their category and size. Fashion brands prioritize return management, while smaller brands focus on low-cost shipments and high protection. Beauty and personal care brands require cold-storage supply chains, while home and general merchandise brands seek reliable insurance.

About Redseer Strategy Consultants

Redseer Strategy Consultants is a leading strategy consulting firm in India, known for its innovation, consumer insights, and entrepreneurial mindset. They are the top advisors for new-age firms on IPO strategy, private equity firms on investment decisions, and founders and boards on sustainable business building. With over 1000 consultants, they serve clients in 22 cities across 5 continents. To learn more, visit www.redseer.com.

About Delhivery

Delhivery Ltd., India’s largest logistics provider, offers a comprehensive suite of services including express parcel transportation, PTL freight, cross-border, supply chain, and technology. With a nationwide network covering over 18,500 postal codes, it has handled over 2 billion shipments since its inception. For more information about Delhivery, please visit www.delhivery.com.

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