BDB India gives information about current trend in Consumer Market Research | BDB India

 

BDB India Private Limited is a leading global business strategy consulting and tells about Consumer Market Research Companies in India. Since 1989, BDB has been providing clients with solutions to expand their businesses in the Indian and international marketplace. We are an ISO certified company.

Logistics and warehousing constitute a critical link in the chain that connects the manufacturer to the eventual consumer. It is the efficiency of the logistics and distribution machinery of a business that dictates the reach time of their goods to the market, and cost efficiencies prove to be a big factor in enabling businesses to stay relevant in today’s competitive environment. 

With the growth in the Indian economy and changing business perspectives, the scope of the logistics industry has broadened from rudimentary transportation of goods to include end-to end supply chain solutions including warehousing and express delivery. The logistics value chain comprises of

Transportation includes modes such as road, rail, ports and airports 

Storage includes Warehouses, container freight stations (CFS)/ inland container depots (ICDs)

Value-added services and distribution through service providers such as freight forwarding agents, custom-house agents, third-party logistics (3PL) and multimodal operators. 

Warehousing primarily refers to the storage of goods, which is to be transported, whether inbound or outbound and is one of the major segments of the rapidly growing logistics industry. 

Currently, the segment has evolved from providing not only custody for goods but also offering value-added services such as sorting, packing, blending and processing. With the evolution of an organized retail sector, modern warehouses for the storage of perishable goods have become indispensable. Warehousing constitutes around 15%-35% of the total logistics costs but its importance is significant with respect to the role it plays in the smooth functioning of supply chain networks. 

Warehouses lay the basic foundation of the supply chain for any company that relies on the distribution of its products from factories to shops and to end users. For this, companies might choose to lease or own spaces, depending on the total costs involved. ‘Grade A’ warehouses are usually labelled based on their superior construction quality, location, space, amenities, and clients, among others.

Warehouses can be categorised by Type (General, Specialty, Refrigerated), Ownership (Public, Private, Bonded), Sector (Industrial v/s Agricultural), Usage Pattern (Single v/s Co-warehousing), Infrastructure (Single Storey v/s Multi-Storey) or by End User Industry (Automotive, Food & Beverage, Chemical, Consumer Goods & Retail, Textile, Pharmaceutical, Others). Warehouses were broadly classified into public-private, bonded, government and co-operative warehouses. 

The domestic warehousing market is highly fragmented with most of the warehouses having an area of fewer than 10,000 sq. ft. Approximately 90% of the warehousing space in the country is controlled by unorganized players, which manage small-sized warehouses with limited mechanization. A fragmented warehousing footprint results in higher average inventory holding, in addition to resulting in higher storage and handling losses, driven by a lower level of mechanization. 

But lately, the sector has been attracting investments from international players which are propelling the formalisation of the sector. With respect to the regulatory ecosystem, many state governments are announcing dedicated logistics sector policies. 

Warehousing spaces are in demand post-pandemic, and the industry has emerged as a resilient asset class.

Market Potential: Comparing Indian Warehousing Market with other Countries

Indian warehousing is still at a very nascent stage and has a long way to go before tapping into its full potential. One of the ways to gauge the scale of the opportunity the Indian warehousing market represents would be to compare the area of industrial and warehousing stock present in developed markets, where the warehousing market is more mature. The growth of a warehousing market is highly correlated with the population and per capita income of a country and is depicted in the adjacent table as well.