Courier company DTDC Couriers & Cargo has launched a new specialized e-commerce logistics initiative called DotZot. The report states that this initiative will offer logistic solutions for e-commerce retailers and will be headed by Sanjiv Kathuria.
DotZot claims to be the first pan India delivery network with a reach of 8,000 plus pin codes and 2,300 cities focusing exclusively on the e-retail space. The launch by DTDC comes on the back of the growing eCommerce industry which is currently pegged to be at Rs 55,000 crore of which retail comprises only 10% and the remaining 90% today is made up of travel and other services. E-tailing is however growing four times faster than the travel category.
With logistics playing a key role in the success of e-commerce companies, it looks like DTDC has decided to tap into this market with this market. However, do note that other courier companies like Bluedart, Aramex already have dedicated e-commerce divisions.
The e-commerce industry currently estimated at $10 billion (Rs 55,000 crore) is growing rapidly. However, the key gap that affects the future growth of this industry is lack of logistics infrastructure bundled with customised systems, processes and technology that are imperative for growth. To grow this segment, logistics solution providers will need to transcend from the traditional ‘courier’ processes to meet the modern day demands.
Sanjiv Kathuria, CEO of DotZot said, “E-retail needs a focused, different and innovative approach for order fulfillment. DotZot will be decisive for merchants who are looking at growing and retaining their e-powered customers. E-commerce customers are becoming increasingly demanding and a great delivery experience is the key differentiator that e-retailers can provide.”
The lack of good logistics in tier II and tier III cities is also a big hurdle when ecommerce begins to look beyond metros to grow.