Third-party Logistics – Q1CY’17 performance review
This is an excerpt from the document that covers the performance of Indian Third Party Logistics Industry (by studying Amazon Market Share, Flipkart Market Share, etc.) for Q1 Calendar Year 2017 covering the performance of both captive and 3PL players.
State of E-logistics in India
• A comprehensive performance review of the E-commerce logistics sector
• Assessed through a regularly tracked set of performance indicators (For e.g., Amazon Growth, Flipkart Growth)
• Published quarterly
What is in this report?
1.This report includes a comprehensive assessment of Indian online e-logistics sector Amazon Market Share, Flipkart Market Share performance across five key dimensions
2. Each key dimension is rated on whether the sector performed above expectations (Bullish ), broadly as per expectation (Neutral ) or significantly worse than expectations (Bearish ) on that dimension
3. Each key dimension is further built up from multiple subdimensions, which are also rated for the sector using the above criteria
RedSeer's Integrated Research ApproachTM incorporating the following:
1. Mystery shopping on 20,000+ items every year
2. Expert interviews on E-logistics industry providing comprehensive coverage of captive logistics of e-tailers (eKart, ATS), New Age 3PLs
(Delhivery, Ecom Express) and traditional 3PLs (Blue Dart, GATI)
State of the E-logistics Market Q1-CY17- Executive Summary
Overall, Q1-CY17 followed the cyclical nature of industry and returned to levels seen in Q1-CY16. Although shipments volume and 3PL revenue educed, e-logistics companies further diversified their portfolio and improved their unit economics
- Q1-CY17 saw the industry return to Q1-CY16 level in terms of shipments
- The industry experienced a slump from Q4-CY16, primarily due to post festive slowdown in e-tailing industry
- E-logistics industry continued to diversify itself in terms of type of shipments, end users and clientele. Hyperlocal shipments increased by 500 BPS from Q1-CY16 while share of long-tail clientele increased by 700 BPS
- E-logistics industry continued to invest in expanding their infrastructure despite lower than expected capacity utilization
- Stagnation in e-tailing industry coupled with increased dominance of captive logistics reduced the potential 3PL market
- On the positive side, stagnation forced e-logistics players to improve their unit economics through increasing share of surface shipping and experimenting with ADMs
- This data was analysed by studying market growth like Amazon Growth, Flipkart Growth
Download the complete document below.