Deutsche Post DHL, the world’s largest mail and logistics group is all set to invest 100 million euros in India over the next two years to assess the development of its e-commerce business for Asia Pacific region. The world’s largest courier company that employs more than 4.5 lakh people in over 220 countries across the globe is now looking all set to make big inroads in online domain. DHL’s business unit, DHL eCommerce will be investing in growth and development of fulfilment centers in infrastructure, options for payment and delivery through its subsidiary Blue Dart Express Ltd.
With the e-commerce companies making huge revenues in India, DHL doesn’t want to be left behind! It is all set to ride the global momentum in e-retailing and will be focusing both on domestic – Asia Pacific and cross-border e-commerce services in the Americas. Deutsche Post DHL aims to be the global leader in e-facilitation and e-fulfilment.
The 100 million euro investment will lead to new jobs being created in e-commerce, IT and logistics and will give the much needed impetus to e-economic growth in the country. This is a win-win situation for both Deutsche Post DHL and the stagnant Indian economy. The company’s decision to test e-commerce business in India is influenced by several reasons –
- Single party majority government in the country after several decades
- Able Prime Minister in the form of Narendra Modi
- Indian e-commerce market is growing rapidly
- Amazon has recently announced to pump in 2 billion dollars to boost online business
- Snapdeal has raised over 200 million dollars in 2014
- Flipkart has also announced 1 billion dollar investment
- E-commerce sector is expected to grow more than 10 percent per annum over the next 5 years
- Asia Pacific region is expected to overtake Europe and North America as the biggest online market in the next 5 years
Deutsche Post DHL is on path to become world’s largest e-commerce logistic company. With the red carpet investment environment under the new regime and the infrastructure solutions in India, the company could have hit the bulls’ eye. There couldn’t have been a better investment time and this decision will go a long way in establishing DHL eCommerce footprints in the country. This could be proved by the fact that –
- More than 18 online retailers have got venture capital in the past 4 months
- Indian e-commerce is currently underdeveloped with only 25 crore internet users out of the total population of more than 125 cores
- Online shopping is expected to grow to more than 4 billion euro by 2018
- Indian e-commerce is expected to grow by ~15% Y-O-Y as compared to 10% globally
- Margins in e-commerce is better by approximately 3% as compared to other verticals
DHL is set to begin its e-commerce journey in India by starting 15 e-fulfilment centers to promote e-commerce in metros including Delhi, Mumbai and Bangalore. The company will also venture into tier-2 and tier-3 cities in the coming years.
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