Product Type: Market Research Report
Published by: Frost & Sullivan
Published: June 2006
Product Code: R1-5352Description Research Overview
This Frost & Sullivan research service titled Strategic Analysis of 3PL Markets in the Indian Retail Sector provides an in-depth analysis of the various segments of retailing and their logistical needs. It also discusses market drivers, restraints, and trends that impact the 3PL market in the retail sector. In this research, Frost & Sullivan's expert analysts examine the following sectors in retailing: apparel and lifestyle, food and grocery, home furniture and fixtures, health and beauty, multi segment, stationery and gifts, watch and jewellery, and consumer durables.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Service Providers
- National-level participants
- Regional-level participants
- Local-level participants
By Customer Constellation
- Apparel and lifestyle retailing
- Food and grocery retailing
- Consumer durables retailing
- Health and beauty retailing
- Multi segment retailing
- Stationery and gifts retailing
- Watch and jewellery retailing
- Home furniture and fixtures retailing
Technologies
The following technologies are covered in this research:
- Logistics: The logistics functions include transportation, warehousing, inventory management, freight forwarding, and MIS functions. Individual business segments carry out these functions.
- Third Party Logistics (3PL): The 3PL penetration in the Indian retail sector differs from the various logistics functions such as transportation, warehousing, freight forwarding, and other value-added services. The 3PL usage in the Indian retail sector is considered partial outsourcing. This implies that only a part of the supply chain requirement is outsourced to a 3PL service provider, depending on the retailers' needs such as location of the outlets, number of outlets, expansion plans, and so on.
Market Overview
Entry of Multinationals and Higher Logistic Requirements Boost Demand for Third Party Logistics
The Indian retail market has opened up to foreign direct investment (FDI), attracting multinational companies (MNCs) by the hordes. The country has already acquired 51.0 percent FDI in single brand retailing and this figure is likely to increase further, as MNCs are encouraged to expand their business in the country. Such developments trigger a need for outsourcing the logistics operations, especially since knowledge of the local market conditions is imperative for the MNCs to operate successfully in a country with diverse geography and demographic needs.
The difficulty of serving such distinct customer groups in a new market compels the implementation of higher logistics and integrated service platform. This drives the MNCs to seek the expertise of third party logistic (3PL) service providers to meet their logistical needs at low costs, with minimal investment in the infrastructure. "3PL helps both local and multinational participants to track their inventory and maintain minimal stocks," says the analyst of this research service. "This helps the companies achieve greater cost efficiencies in their supply chain and encourages increased outsourcing of logistics activities to a 3PL service provider."
Provision of Customized Services to Promote 3PL Services among Organized Retailers
Currently, even organized retailers such as those of apparel and lifestyle, consumer durables, food and grocery, footwear and leather, as well as stationery and gifts have not accepted the concept of 3PL. The transportation is carried out partly by organized service providers and partly by truckers and local transporters. The logistics model for each of these organized retailers varies significantly due to the nature of their products and product life cycles. Therefore, future opportunities for 3PL service providers depend a lot on their ability to customize services at competitive prices to suit the unique needs of each of these segments.
With the implementation of value-added tax (VAT), the warehousing activity will be streamlined, providing an added advantage to the retail sector. This requirement is expected to increase outsourcing of warehousing operations in the future. "The rising need to maintain fewer inventories among the retailers is yet another factor that will drive the market toward outsourcing," says the analyst. "Increasing requirement of forwarding and information management functions also help the retailers to achieve greater productivity and efficiency, thereby boosting demand for 3PL services."Table of Contents 1. Executive Summary
1. Market Overview
1. Introduction to the Indian Retail Sector
2. Introduction to the Logistics and Third-party Logistics Industry in India
3. Overview of 3PL Usage in the Indian Retail Sector
2. Summary of Research Findings
1. Opportunities for the 3PL Service Providers in the Indian Retail Sector
2. Industry Challenges
3. Market Drivers
4. Market Restraints
5. 3PL Market in the Indian Retail Sector and Forecasts
6. Competitive Analysis
7. VAT and its implications on the Indian Retail Sector and 3PL Market
8. Strategic Conclusions
2. Strategic Analysis of 3PL Market in the Indian Retail Sector
1. Introduction
1. Introduction to Logistics and Third Party Logistics (3PL) in the Indian Retail Sector
2. Scope of the Study
2. 3PL Scenario in the Indian Retail Sector
1. Evolution of 3PL in the Indian Retail Sector
2. Overall 3PL Usage in the Logistics Functions
3. 3PL Usage in Different Logistics Functions
3. Awareness and Attitudes about 3PL in the Indian Retail Sector
1. Awareness about 3PL in the Indian Retail Sector
2. Attitudes toward 3PL in the Indian Retail Sector
3. Preferences regarding 3PL in the Overall Indian Retail Sector
4. Concerns about 3PL in the Indian Retail Sector
4. Market Trends
1. Industry Challenges
2. Market Drivers
a. Retail Boom in India
b. Need for Integrated Supply Chain
c. Entry of Multinational Companies
d. Government Initiatives
3. Market Restraints
a. Infrastructure Bottlenecks
b. Unorganized Sector Penetration
c. Unwillingness to Outsource
5. Market Size and Revenue Forecasts
1. Current Size of the 3PL Market in the Indian Retail Sector
2. Revenue Forecasts
3. Revenue Forecasts For Different Logistics Functions
6. Competitive Analysis and Industry Structure
1. Competitive Scenario of the Indian 3PL Market
2. 3PL Industry Structure
3. Services Offered for the Retail Sector
7. Implications of VAT on the 3PL Market in the Indian Retail Sector
1. Importance of VAT and its Impact on the Indian Retail Sector
2. Opportunities for 3PL Service Providers
3. Challenges for 3PL Service Providers
3. End-user Analysis - Overview of 3PL Needs and Practices in the Indian Retail Sector
1. Introduction
1. Introduction to the Indian Retail Sector
2. Segmentation of the Indian Retail Sector
3. Structure of the Indian Retail Sector
2. 3PL Practices in the Overall Indian Retail Sector
1. Reasons for Outsourcing Various Logistics Functions
2. Preferences for Outsourcing Various Logistics Functions
3. Practices and Needs of the Indian Retail Sector
1. Apparel and Textile Retailing
2. Consumer Durables Retailing
3. Food and Grocery Retailing
4. Footwear and Leather Retailing
5. Home Furniture and Fixtures Retailing
6. Health and Beauty Retailing
7. Multi-segment Retailing
8. Stationery and Gifts Retailing
9. Watch and Jewelry Retailing
10. Profiles of Major Retailers
4. Competitive Analysis of the 3PL Providers in the Indian Retail Sector
1. Industry Size and Structure
1. Industry Size
2. Industry Structure
2. Industry Life Cycle
1. Current Status of the Industry Life Cycle
2. Current Status of Market Life Cycle
3. Services Comparison
1. Services Comparison of Major Market Participants
4. Market Share Comparison and Breakup
1. Market Share Breakup by Category of 3PL Service Providers
2. Market Split of National 3PL Service Providers
5. Profiles of Major 3PL Service Providers in the Indian Retail Sector
1. Safexpress
2. Gati Ltd.
3. TCI Supply Chain Solutions
4. Om Logistics Ltd.
5. SembCorp Logistics
5. Recommendations and Growth Strategies for 3PL Providers in the Indian Retail Sector
1. Opportunities in the Indian Retail Sector
1. Types of Services with Potential in Short Medium and Long Term
2. Business Model
1. Suggested Business Models
3. Pricing and Positioning
1. Suggested Pricing Strategy
2. Suggested Positioning Strategy
4. Growth Strategy Initiatives
1. Suggested strategy for Acquisitions and Mergers
6. Database of Key Industry Participants
1. Key Industry Participants in the Indian Third Party Logistics Market
1. Market Participants
2. Key End-user Participants in the Indian Retail Sector
1. Market Participants
7. Decision Support Database
1. Comparative Tabulation of Infrastructural and Industry Figures
1. Tabulation of Infrastructural Figures
2. Tabulation of Retail Industry's Figures
3. Tabulation of Retail Transportation Figures
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