SINGAPOREandMUMBAI,Aug. 26, 2014 — Deutsche Post DHL, the world’s leading mail and logistics group, has chosenIndia to pilot the development of its e-commerce business model forAsia-Pacific. Through its subsidiary Blue Dart Express, already a national leader in door-to-door delivery, DPDHL ‘s business unit DHL eCommerce is investing in infrastructure and the development of fulfillment centers, multiple delivery and payment options as part of its aim to become the preferred global provider of e-commerce related services including e-fulfillment and e-facilitation.
Frank Appel, CEO, DPDHL, said: “Globally, e-retail is rapidly evolving. Over the next five years, the global e-commerce sector is expected to grow by more than 10 per cent per annum withAsia Pacific leading the way. This region is expected to soon surpassNorth America andEuropeas the biggest online market in the world. As the leading logistics company with an unsurpassed global footprint, there’s a huge opportunity for us to become the world’s leading provider of e-commerce logistics and we have a ready solutions infrastructure inIndia to pilot our solutions.”
Blue Dart Express is well positioned to pilot e-commerce inIndiaand models for Asia Pacific. The leader in door-to-door delivery solutions andSouthAsia’spremier express air and integrated transportation and distribution company, Blue Dart services over 34,154 locations inIndia.
Investing in infrastructure and new delivery options
By 2025, e-commerce share of overall trade volume of emerging markets will be up to 30 percent (40 percent in developed countries), according DPDHL’s report ‘Global E-Tailing 2025′[1].
Malcolm Monteiro, CEO, DHL eCommerceAsia Pacificsaid: “With 250 million Internet users, Indian e-commerce remains underdeveloped, with online shopping valued atEUR 2.3 billion in 2013. This is expected to grow toEUR 4.1 billionby 2018, a CAGR of 12.3 per cent in 5 years[2]. All countries acrossAsia are in different evolutionary stages when it comes to e-commerce. We need to adapt our service portfolio within the region accordingly.”
InIndia, DHL eCommerce, working closely through Blue Dart will invest in developing multiple delivery options and cash on delivery capabilities. These two key needs were identified byIndia’s top online shoppers – male, high-income, young urbanites – as part of a 20-country consumer survey on international distance selling ‘Shop the World’, carried out by DHL eCommerce to provide a deeper understanding of the home shoppers’ journey.
Anil Khanna, Managing Director of Blue Dart Express Ltd, said: “Blue Dart’s unrivaled domestic delivery system and network capabilities inIndia provide the perfect base for piloting the development of region wide e-commerce solutions. We are working closely with leading brands, market place sellers and retailers to help them establish a sustainable e-commerce footprint. That’s why we are investing in the right infrastructure – including IT – to build the right model for consumers and sellers.”
TappingIndia’seCommerce potential withIndia-specific insights
According to ‘Shop the World’, online purchases inIndiaare limited largely to consumer electronics, fashion and media products with shopping by smart phone the norm. Indians’ main reasons for online shopping are overcoming geographical restrictions on choice and unlimited shopping hours — although the biggest negative was unknown quality of online products. E-shoppers inIndia revealed delivery expectations that were higher than the global average. Despite the country’s size, Indian shoppers expect delivery within 5 days (global average 6.5 days), parcel tracking options and free delivery. The average rate of return of goods also scored higher than the global average at 29.5 per cent with poor quality or defects the number one reason for returns.
The survey also identified growth opportunities in the development of online payment systems — cash on delivery or cards beingIndia’s top payment choice — and in international sales. The majority of Indian e-commerce is domestic with only a third of consumers having ordered overseas. This is set to grow with more than half planning to place an international online order with US being the number one target market.
Favorite