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E-commerce to invest in logistics, infra & warehousing

Update On :02 July 2016

E-commerce to invest in logistics, infra & warehousing

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and PwC report states that e-commerce firms are expected to make investments close to $6-8 billion in logistics, infrastructure and warehousing in the next few years. E-commerce companies have planned for the same considering the growing popularity of online shopping which is expected to make the e-commerce market in India to reach $80 billion by 2020.

Report noted that there is a very low level of air cargo penetration characterized by only a few airports equipped to handle large volumes of express delivery parcels presently. As the e-commerce gathers momentum and moves to the tier-II and tier-III cities, there will be increasing demand of expanding air cargo connectivity to smaller towns. The industry would invest in about $8 billion by 2025.

The overall e-commerce industry, valued at $25 billion has been growing at a compounded annual growth rate of about 35-40 per cent each year adding that it is expected to cross the $100 billion mark in five years. Assocham secretary general D S Rawat said that innovations are very important in this sector, as the demand is always for more reach and faster shipping at lower costs. The companies will need to invest in automation, while utilising existing resources well.

In India roughly 60-65 per cent of the total e-commerce sales are being generated by mobile devices and tablets. Shopping online through smart phones is proving to be a game changer and industry leaders believe that m-commerce could contribute up to 70 per cent of their e-commerce revenues. Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics have provided the e-commerce sector in India the unique opportunity for the companies to connect with their customers.

News Source From : http://timesofindia.indiatimes.com/business/Growing-e-commerce-to-invest-8-billion-in-infrastructure-logistics/articleshow/52973620.cms

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