Couriers Industry

 

Overview

Although the Indian postal service, DHL Express India Pvt. Ltd. and Blue Dart Express hold domestic market shares and have secure global networks, India is still cluttered with many small unorganized participants who have gained trust of the customers over the years. Although with the courier service industry catering to a total of approximately 40,000 pin codes of the country, due to the unstructured market and harrowing competition from local courier express services, there is a dire need for this industry to achieve better networks, innovate rigorously and strive towards better support from logistics.

With over 150,000 post offices set up in the country, the Indian Postal Service is rendered the most reliable of all players. But the express services' industry faces severe pressure which undermines profit in bringing a cap to their prices. While BlueDart and DHL entered in to an association in 2014 to enhance their presence in the market, there is need for breakthrough technology and best practices withstanding the forces of competition. With little left to improve on, the industry has to gather its stability from solidifying its market through unification and alliances among top players, proficiency in their logistics network and devising a strategy to opt for just in time systems and usage of the growing information technology sector to their advantage. Moreover, in spite the fact that the express delivery services, have, over the years sought faster delivery with cost performance, characteristically, it remains very elastic in favor of the customers due to the competition. Many foreign participants have tried to squeeze in to the markets but have struggled to keep up with low price potential and severe pressure on cutting costs.

The following is the market structure of the industry in terms of its business relationships with concerned target market:

Outlook

The industry is at its maturity stage and has consolidated to a level where barriers to entry have been created. Owing to the boom of the e-commerce sector however, the potential for tie-ups between these companies and the courier services is high. Giants like Amazon and Flipkart look forward to linking with Indian postal services for their distribution and warehousing needs. The overall existence and survival of postal services is going to decrease significantly due to other modes of communication taking market share.

Some of the International companies that have been covered are DHL, FedEx and UPS and thus critical success factors of such companies have also been assessed taking into consideration there varied customer segments and global presence across countries.

 

Future Potential

A strong correlation exists between growth in consumer goods and express delivery industries. The recent dip in the consumer goods industry growth rates pulled express service figures along with it. But revivals in economies worldwide in terms of consumption has alleviated previous drops in growth rates. A diligent focus on Tier II and Tier III locations with better connectivity and sales services should save slower growing profits. Internationally, the infrastructure in cargo aviation and distribution through better air, rail and road freight networks should be quickly put in the place. Time critical deliveries should be of paramount importance since every customer is essential in an industry which thrives on intense competition. Partnerships, nationally and internationally, with banks and access to potential customers through mobile networks in terms of order, delivery and payment would aid in increasing sales. A compromise on quality through mutilation, theft or misplacement cannot be afforded in this scenario. Since the delivery systems have already been saturated in terms of time and technological efficiency, the focus should shift to order placement and payment modes.

What this report contains:

  • A detailed overview of the industry

  • Structure of the industry from both, domestic and international perspectives

  • Related industries that this industry has inter-dependencies with and their understanding

  • Detailed analysis of industry segments in terms of the value and depth of corresponding market

  • Analysis & insights about the elements and critical success factors of this industry using strategic models

  • A forecast on the state of this industry in 2021, predicting the growth and movement patterns for 2016 - 2021

  • Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants analysis and their key strategic initiatives

  • Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models and Valuations of major players of the market

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Global Couriers Industry 2016-2021

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