ecommerce and logistics india
TRANSCRIPT
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The chang ing scenar io
Ecommerce and Indian Logistics
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Commerce, once relegated solely to the confines of retail shops and stores, has now moved to online mediums.
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Growth depicted by home-grown players such as Flipkart and Snapdeal is indicative of the immense potential that the ecommerce market depicts
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International players like Amazon and Alibaba with deep pockets have also entered India’s ecommerce market. Big players like them claim to have more than 50% of their revenue coming from mobile apps.
50%
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Growing internet and smart phone penetration has revolutionised the way of doing business globally.
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This growing trend has further complicated the market by ever-shortening delivery timeliness, doorstep delivery, traceability solutions and reverse logistics
“ “Chander Agarwal, joint managing director, Transport Corporation of India.
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According to a KPMG study, the e-commerce industry is expected to contribute around four percent to the GDP by 2020.
The revenue for logistics industry from inventory based consumer e-commerce expected to grow by 70 times to $2.6 billion by 2020.
%
X
470
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We believe there is room for multiple formats, players and most importantly, for innovation“ “
Samuel Thomas, director transportation, Amazon India
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PwC report on e-commerce in India, The Indian government’s ambitious Digital India project and the modernisation of India Post will also affect the e-commerce sector. It will give a strong boost to the e-commerce market by bringing the internet and broadband to remote corners of the country.
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Teething problems
The industry is faced with significant hurdles with respect to infrastructure, governance and regulation. Low internet penetration of 11% as compared to world average of 34% impedes the growth of e-commerce by limiting the internet access to a broader segment of the population.
Poor ‘lastmile connectivity’ due to missing links in supply chain infrastructure.
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Amazon is working towards ironing out these hurdles. They were among the first companies in India to introduce premium guaranteed delivery services including the ‘Two-Day Delivery’ & ‘One-Day Delivery’ services.
They also introduced dedicated ‘rural’ e-commerce distribution centre manned by local youth in Tumkur in Karnataka which has crunched the delivery time from over a week to 2-3 days.
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A 3PL can help its customers navigate the complex world of omnichannel supply chain network.
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Manufacturers can engage with 3PL to provide value added services that complement and improve on existing warehousing, distribution and fulfilment operations
“ “Amit Dhingra, Director India operations, Menlo Logistics
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eCommerce companies are moving toward smart solutions to make the process efficient. Investing in data analytics to gain real-time insights into customer buying behaviour is a trend picking up soon.
Flipkart is planning to buy out MapMyIndia, a digital mapping company. This is to strengthen its logistics and customer analytics. MapMyIndia’s vast database across big metros and small towns is a real asset for e-tailers.
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The e-commerce industry is an exciting place with the interplay of social, mobility, analytics, cloud (SMAC), digital, 3D, automation and, virtualization.
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Thank You
Source: http://www.itln.in/index.php/heralding-the-e-renaissance/