India is a country of great opportunity for online
retailers. However, like many other Asian countries, infrastructure, reliability
and costs are hindering the growth of e-commerce.
Despite issues facing India’s commerce market, it is
estimated the country’s ecommerce market was valued at $14bn in 2012 compared
to $6.3bn in 2011. The growth is expected to continue as more online start-ups
enter the increasingly populated space to meet the needs of price-conscience
consumers seeking bargains and an expanded selection of goods.
While logistics providers such as Aramex and Blue Dart offer
warehousing and delivery solutions to online retailers, the costs and limited
delivery points associated with these offerings are prohibitive to many retailers
as well as to consumers that pay for delivery services. As such, new logistics
and delivery service providers are popping up. For example, DTDC Courier & Cargo,
express courier company launched its specialist logistic company for
e-commerce- DotZot. According to the company, it will be the firstpan India
delivery network with a reach of over 8,000 pin codes and 2,300 cities focusing
exclusively on the e-retail space. Sanjiv Kathuria, a former TNT executive and
current CEO of DotZot said, “E-retail needs a focused, different and innovative
approach for order fulfillment. DotZot will be decisive for merchants who are
looking at growing and retaining their e-powered customers. E-commerce
customers are becoming increasingly demanding and a great delivery experience
is the key differentiator that e-retailers can provide.”
Another recent example is Ecom Express, launched by former executives
from Blue Dart only last month and already has operations in 36 cities. The
company plans to expand to 500 cities within 3 years. According to Ecom
Express, that large courier companies have limitations when it comes to retail
consumers but one focused on the e-commerce sector has advantages. "If a
buyer wants to try four pairs of shoes, logistics can be managed better by a
niche company. We can dress our staff in the portal's brand; speak the same
language as the brand to give customers a unified experience.”
To address many issues associated with last-mile delivery, Chottu
was launched in 2011 and provides such service only for ecommerce clients. The
company offers a proprietary shipment tracking system and often times delivers
within 24 hours.
As the Indian ecommerce market continues to grow at a rapid
rate, many online retailers face logistics challenges such as the cost and
management of warehousing, timely delivery across the country, the handling of
various payment options and the technology to combine and manage each of these
supply chain components. New solution offerings such as those from DotZot, Ecom
Express and Chottu are a good start and may provide partnership opportunities
for larger logistics providers.
