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Strategic Analysis of 3PL Markets in the Indian Consumer (CED)

DateDec, 2006
Pages108
Price / format$6000 / Electronic Access - Single User
$7500 / Electronic Delivery - Global Site License
$6500 / Hard Copy Mail Delivery

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Abstract:
 Research Overview

This Frost & Sullivan research service titled Strategic Analysis of 3PL Markets in the Indian Consumer Electronics and Durables (CED) Sector provides in depth analysis on logistics and 3PL market in the Indian CED sector, market segments, end-user analysis, competitive trends and opportunity analysis. In this study, Frost & Sullivan's research analyst thoroughly examined the following markets: CED Logistics in India, CED 3PL in India, CED transportation 3PL, CED warehousing 3PL, CED freight forwarding 3PL, and CED MIS/other value added services 3PL.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
  • CED Logistics Market in India
  • CED 3PL Market in India
  • CED Transportation 3PL Market
  • CED Warehousing 3PL Market
  • CED Freight Forwarding 3PL Market
  • CED MIS/Other Value Added Services 3PL Market
Market Overview

Future of this Market Looks Promising as the Economy Grows

Presently, the consumer electronics and durables (CED) sector in India is not a large contributor to the third party logistics (3PL) market revenues in the country. The penetration of the 3PL model in this sector is fairly low, but the opportunities for growth are high. "The demand for 3PL services is gradually increasing and tremendous growth is expected in the future," according to the analyst of the study. "The market is highly consolidated and as a result, the outsourcing models followed by companies are also very different, depending on a variety of factors such as needs and market share."

The 3PL providers face several challenges. Complex tax laws and poor infrastructure can potentially make logistics a less attractive proposition. Moreover, the negative attitude of non-outsourcers toward 3PL needs to be changed. In spite of these challenges, Frost & Sullivan expects very good growth for 3PL services in this sector, driven by increasing penetration and improving infrastructure and tax systems.

Growth of Multinational Companies in the CED Sector to Boost 3PL Logistics Market

The growth of multinational company operations in the Indian CED sector in the past few years has driven the use of 3PL services. Since multinational companies like LG, Samsung, and Sony, intend to achieve faster and maximum market penetration, they are increasingly depending on 3PL service providers to fulfill their logistics needs. The CED sector is growing at an encouraging rate across India due to the rising income levels and economic prosperity. The increased consumption levels and pace are resulting in the need for a faster and frequent distribution of goods for the CED companies, thus driving them to adopt advanced logistics practices. This is likely to increase the usage of 3PL services to a significant level.

The services offered for CED sector by the 3PL service providers in India had been steadily rising, driving up the adoption. "Functions which were not addressed earlier by 3PL providers are also being fulfilled now, such as domestic freight forwarding, packing, labeling, and quality check," explains the analyst. "As a result, more CED companies are adopting these services."


Table of contents:
1. Strategic Analysis of 3PL Market in Indian CED Sector
1. 3PL Market in Indian CED Sector
1. Strategic Analysis of Indian CED 3PL Market




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