The pandemic instrumented a radical shift in consumer behavior and preferences. The penetration of the internet and smartphone has given a big boost to this. E-commerce has significantly impacted the way customers shop. The e-commerce market in India is projected to reach US$ 75 Billion by 2022, recording a CAGR of 21.5% over 2021-25, reaching a market size of US$ 120 Billion. Some of key consumption sectors, emerging business models and the required logistics services thereof are listed below:

1. Growth of Agri Tech

• Increased logistic requirements owing to organized practices
• To manage ‘Integrated Supply Chains: farm2fork concepts
• Distribution of Agri inputs
• Government induced and Public Sector led investments in ‘Near Farm Infra’ will emerge as a dominant political narrative.
• State govt. expected to play an important role in mobilizing resources for enablement of cold chains for horticulture, fresh produce and cash crops.

2. Extended Producer Responsibility

• Management of Reverse logistics, perhaps with more focus on FMCG, Electronics, Durables
• Enablement of B2B2C logistics infra for EPR commitments

3. Growth of Digital Native Business (Quick Commerce)

• To go hyperlocal
• Manage frequent and prompt deliveries
• Re-localize strategy

4. Focused last-mile deliveries

To improve customer experience Huge investments are being directed towards route optimization, tracking and network building to focus on and meet the last-mile delivery requirements. Today, a growing number of logistics players are strengthening their efforts to provide customers with hassle-free deliveries.

5. Increase in Return Management/Reverse Logistics

The E-commerce market is experiencing rapid growth. Along with deliveries, there are also innumerable returns required to be catered efficiently by E-commerce partners. Here, technology plays a crucial role in efficiently integrating the inventory management system with the E-commerce platforms. This area will be very critical for all industries because having a smooth returns/recycle logistics system will be necessary in order to comply with ESG norms.

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