Page 11 - ITLN March - April 2022 issue

D2C, digitally native brands are the absolutely not standard, but they can
new norm still sell on Facebook, Instagram and
As per an Inc42 Plus report, the WhatsApp. So we need to streamline their
domestic direct to consumer (D2C) processes and make them understand
market is likely to treble to $100 that we will be in a position to take
billion by 2025 from $33.1 billion in their products only if certain things and
2020. Similarly, as per a report by protocols are in place," he said.
Accenture, the social commerce As an express company that uses
market is projected to grow at a CAGR domestic air freight capacity, Dhingra
of 59 percent to $17 billion in gross shared his experience with one of
merchandise value by 2025. Smartr's D2C clients. "One of the
D2C and digitally native brands (DNB) biggest supply chain brands of the
are not just trends but the new norm country is working with us and they
in Indian e-commerce. Similarly, social deal with very, very expensive items.
commerce and reselling platforms have Let's say that a piece is available in
also joined the party. However, it is the Bangalore, but not in Mumbai then we
logistics requirement of these models pick it up around nine o'clock in the
where it gets tricky. night and early morning it's delivered at
According to Kumar, D2C and DNBs their Mumbai office or delivered to their
require three things. The customer end customer via air freight."
should get the product faster, they The brands and SMEs are not just
should get the product in good packaging looking into the Indian domestic market
and it should be handled properly. but also globally outside their borders
"Most of the D2C brands are small which can be accessed through the
brands. So they cannot have the magic of e-commerce.
fulfilment from their central warehouse
because it will take four, five, six days Cross border e-commerce is here
ensures supply chain resilience and or even a week for them to deliver right now, but will regulations ease?
service delivery consistency,” he the product. That's where logistics QuickShift is a company that is trying
added. companies come in and provide a shared to replicate its model in countries like
regional fulfilment centre," he said. Indonesia, Malaysia, Singapore and
3. Airlines latest entrant in These D2C brands are coming up also the Middle East. They also help
e-commerce fray with demands and requirements in an international brands in Vietnam and the
Dhingra of Smartr Logistics could attempt to increase their customer Middle East to distribute their products
see a few trends in the air cargo experience and sales. in India.
industry of India due to the growth in Bhoi said, "It is the new-age companies Roy said, "Many international brands
e-commerce. In fact, Smartr Logistics that have embraced the model of D2C are interested in marketing in India.
recently announced same-day interstate logistics. Their requirements are not only But the moment they get their products
delivery in India and is looking forward about speed, but it is also about visibility in India, the challenge of distribution
to leveraging the airfreight capacity of and if the shipment is on the doorstep comes in. We can provide the entire
Indian airlines on domestic routes to and the customer requires to shift from backend chain to ensure that their
move these e-commerce goods. COD (Cash on delivery) to prepaid, can products are made available in every
Airports across India saw a 35 you do it? And you need to attempt the state and they are able to service them."
percent increase in cargo handled for delivery between the timeline of nine to Bhoi of XpressBees has found the
the first ten months of the current 12 only, for example." regulations, taxes and the basic life cycle
financial year to 2.6 million tonnes, of Indian e-commerce is what stops India
according to the latest numbers from Social Commerce-a passing trend or from playing big in the cross-border
the Airport Authority of India. here to stay? e-commerce sector. "The overall life
“As India is focusing on becoming an With the emergence of social cycle even today for cross-border is about
air cargo hub for the region, we will see commerce, people can make their four to six weeks. Taxes for most of the
a lot happening in terms of the air cargo products and sell them online through shipments coming as imports from any
traffic and a lot of e-commerce will move social media sites. However, it appears country is very high compared to other
through the air and we have already seen that the procedures followed by these countries. Countries have customs-
the development of various airports in sellers are not standardised. friendly governments where there
the country under the Udan scheme. So, Roy of QuickShift shared his experience isn't much of a hassle in terms of the
more and more airports will emerge and in dealing with such sellers. "When you regulations clearance, paperwork, taxes,
more and more flights will go into these talk to someone who's been baking their etc, which unfortunately is not the case in
smaller areas,” he said. product in the house, the processes are India," he said.

9
www.itln.in March - April 2022