Thursday, October 05, 2017

Brand Update : Is India Post missing out of e-commerce boom ?

Indian e-commerce industry is on a song these days with Big Billion Days and Great Indian Festivals and products flying off from the web-shelves. According to KPMG, on an average, there are 1-1.2 million transactions happening in India every day. Indian e-commerce industry had done business worth $12 billion GMV in 2016. Analysts paint a bright future for this industry in years to come. 
The backbone of the e-commerce boom is the logistics. According to KPMG report (Link), the logistics industry driving the e-commerce is worth $ 0.46 Bn and expected to touch $2.2bn in 2020. 

With all these actions happening, our very own India Post seems to be taking a backseat in the whole festival. While Flipkart and Amazon have already built their own logistics arm, there are scores of entrepreneurs who want a reliable logistics partner who can reach the nook and corner of a vast country like ours.  
Look at India Post, no one can beat the reach and equity of this institution. At the same time, the institution is also not in good shape financially. One year back the department has scaled down its post offices and closed down a lot of unviable post offices. In a country where last-mile connectivity is a bottleneck for many firms, India Post scales down its reach to become financially viable. Irony. 

 According to this report in ET (link) India Post is taking actions to reap the benefits of this e-commerce boom but not enough. By this time, it could have been the largest beneficiary of the boom. But sadly the institution failed to capitalize the opportunity. It could have geared up the infrastructure and technology to match the speed of the market. I think the game is not over yet with many new formats are being explored in the Indian market and lot of small shops are getting on the bandwagon. Hope that India Post can become the preferred partner for those firms who desperately need a reliable last-mile partner. 

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