ONIX Advisors & 4FC : In keeping with the general consensus, we expect a significant uptick in the demand for warehousing assets across tier I and tier II/III cities.
We anticipate a dramatic shift in buying preferences of millions of Indians from visiting malls and high streets to buying online. This change in buying behavior will lead to an e-commerce boom in the Indian market. Moreover, large manufacturing companies that had traditionally relied on retail-led sales will focus on digital channels, thus providing a further fillip to e-commerce.
E-commerce relies heavily on availability of warehousing infrastructure at strategic locations close to consumption hubs, and hence, with the growth of the industry, the need for warehousing assets is going to grow manifolds in the times to come.
From a location standpoint, manufacturers, e-commerce and third party logistics (3-PL) companies will continue to invest in established and upcoming warehousing zones of the top 8 tier I cities that lead India’s consumption story, but at the same time, build a network of warehouses in strategically located tier II and tier III cities that are less affected to mitigate any possibilities of supply chain disruptions.
For more insights on warehousing, please reach us on +91-9108447825 or +91-9108447829.
Reference articles:
- “Growing ecommerce demand, changing consumer consumption patterns and rapid adoption of omnichannel distribution models by companies in the backdrop of the Covid-19 outbreak are likely to push demand for warehousing and logistics spaces across the country.”
- The Welspun One Logistics Parks (WOLP) report estimates that the warehousing and logistics industry will grow at 35% in 2021 compared with the earlier industry demand forecast of 25%.
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