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Third-party logistics (3PL) providers – indispensable partners to accelerate growth for early-stage D2C brands

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Mumbai: In a recent report on the logistics landscape of new-age D2C brands, Redseer Strategy Consultants shared insights into India’s direct-to-customer (D2C) market, logistics requirements of early-stage D2C brands, and how third-party logistics (3PL) players are effectively catering to them.

The report highlights the remarkable growth of D2C brands in India, surpassing the traditional retail markets. While the annual D2C shipments have skyrocketed from 0.1 billion in 2019 to 0.6 billion in 2023, estimates indicate that the market could reach $2.2-2.7 billion by 2028, growing at 35-40 per cent year-on-year from 2023 to 2028.

A significant portion of these shipments is attributed to the services of the 3PL providers, who play a major role in delivering superior customer service. 3PL providers offer tailored and comprehensive end-to-end logistics services, including warehousing, inventory management, shipment intelligence, and transportation. These services have become crucial for young brands that now have access to advanced logistics infrastructure without the need for significant capital investment.

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To gain insights into the needs of early-stage D2C brands, Redseer Strategy Consultants conducted over 60 interviews with emerging brands in India. The survey revealed a growing trend of these brands partnering directly with 3PL service providers, recognizing their customized solutions approach. This strategy allows young brands to leverage 3PL expertise, adapt to their evolving logistical requirements, and concentrate on core business activities while solidifying their presence in today’s competitive brandverse.

The report further underscores how 3PL logistics players are innovating to meet the increasing demands of new-age D2C brands. Some of the proactive measures undertaken include:

●  3PL providers are investing heavily in technology and infrastructure, offering accelerated delivery times, real-time tracking, non-delivery reports, and predictive analytics for returns.

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●  They provide seamless cash-on-delivery (COD) solutions with swift remittance, typically within 48 hours, which is vital for the working capital of smaller brands.

●  They support new-age brands through offline market expansions, offering integrated logistics and supply chain solutions, including warehousing, express part-truckload and full-truckload freight and streamlined distribution to brick-and-mortar stores.

●  They ensure consistent service levels, prompt issue resolution, and personalized account management, making the logistics process hassle-free.

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“Third-party logistics (3PL) providers are integral to the value-chain of the new age D2C brands. They are continuously innovating to address the unique needs of these brands, fostering partnerships from the early stages of brand journey,” said Redseer Strategy Consultants partner Kanishka Mohan.

Within the 3PL logistics landscape, Redseer has highlighted factors like brand and customer experience and operational efficiencies that are important for new-age brands when choosing their preferred partners. While both Delhivery and Bluedart stand out on overall metrics, Delhivery has outperformed in providing superior customer experience and features, as it provides a full stack solution.

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Brands

Tata Consumer Products faces Rs 98 crore tax demand

Income tax authorities raise significant demand for the 2022-23 financial year

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MUMBAI: Tata Consumer Products Limited has received an assessment order from the income tax department involving a substantial financial demand. The order, issued by the assistant commissioner of income tax in Kolkata, was received by the company on 13 March 2026. It follows an audit of the income tax returns filed for the 2022-23 financial year, during which the assessing officer made specific additions and disallowances to the company’s reported income.

The total demand raised by the authorities amounts to Rs 98,03,33,930, a figure that includes both the principal tax amount and accrued interest. This disclosure was made by the company’s company secretary & compliance officer, delnaz dara harda, in a formal filing to the National Stock Exchange and BSE Limited on 14 March 2026. The filing was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In response to the order, Tata Consumer Products has stated that it believes the demand is not maintainable under current law. The management has confirmed that the company is currently in the process of filing an appeal against the assessment. Furthermore, the company clarified that there is no immediate impact on its current financial standing, operations, or other corporate activities resulting from this specific order.

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