The report states that branded retail will account for over 50 per cent of the total retail market by Financial Year 2034 (FY34)
Highlighting the significance of logistics in driving growth for brands in India’s retail and ecommerce markets, a report has stated that third-party logistics (3PL) providers are powering India’s USD one trillion branded retail opportunity. The report added that India is set to cross USD 3.5 trillion in private consumption in the next five years, becoming the world’s third-largest consumer economy,
A report titled Delivering the future: How New-Age Logistics is Transforming Brand Success by Redseer Strategy Consultants has revealed that the country’s consumer base is highly diverse, requiring brands to adapt to varied consumption patterns. By FY34, branded retail—both traditional and new age—will account for over 50 per cent of the total retail market unlocking an over USD one trillion opportunity from brands, which is almost four times of today.
As India’s branded and online retail markets expand, the report highlighted the increasing complexity of distribution networks such as omnichannel platforms, direct-to-consumer (D2C) storefronts, ecommerce or quick commerce warehouses and storefronts, dark stores and the indispensable role of 3PL providers.
“3PL providers are an important pillar for Retail and ecommerce 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,” stated Mrigank Gutgutia, Partner at Redseer Strategy Consultants.
The report added that third-party logistics 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 USD 50 billion by FY29 – almost twice that of FY24, underscoring the importance of efficient supply chain management.
