The retail logistics system ensures a smooth flow of goods to customers through the efficient movement of logistics. It is the process of managing the flow of merchandise from the source of supply to the customer. Logistics end, which is a key link, is gradually showing a new look in the context of new retail and transformed into new logistics. Driven by data and technology, logistics will not only achieve intelligent warehousing coordination and distribution path optimization, but as the new retail system continues to grow, the logistics industry will also undergo fundamental changes. The use of new tools such as drones at the logistics distribution end will no longer be new, and smart warehousing will be closer to consumers in the future.
The global retail logistics market projected to grow at a CAGR of over 11.29% during the forecast period 2020–2027. It is primarily attributed to factors are the growing penetration of the Internet has increased the number of e-commerce and increasing trade opportunities for international retailers. Additionally, the expansion of global grocery retailers and international fashion brands allow the sales and purchase of their goods and services across international land borders are expected to drive the growth of the global retail logistics market in the upcoming periods. Moreover, the surge in internet penetration across the world and changing consumers towards buying products and services through various mobile applications will accelerate the growth of the global retail logistics market size in the next few years.
In the new retail format, since most of the links have been digitalized and online in real-time, coupled with the application of new technologies such as big data and AI, it helps companies to grasp the real needs of consumers faster and more accurately. It is used to guide supply optimization and upgrading of chains. Furthermore, the rise in trade activities of the developing economies, the surge in trade-related agreements and logical infrastructure are anticipated to boost the market growth. Also, advancement in information technology and the transportation sector, such as AI-based supply chain and data analytics, will augment the robust growth of the retail logistics industry in the future time. In addition, increasing the use of multimodal transportation, such as railcars, aircraft, or ships, which is helping cut back inventory costs, thereby keeping the costs of the merchandise under control, are vital factors estimated to boom the retail logistics market.
The scale of e-commerce transactions has continued to expand, and people’s consumption patterns have also undergone specific changes. The continuous popularization of e-commerce will directly lead to the development of service industries such as animal streaming, finance, and IT. It will promote the development of its sub-businesses in the e-commerce ecosystem, such as third-party payment, electronic authentication, network information security, and network insurance. Auxiliary e-commerce services derive some new service industries. The development of enterprise supply chain e-commerce and international e-commerce will drive the growth of e-commerce services.
The Cross-border e-commerce of small and medium-sized foreign trade enterprises has bucked the trend. The emergence of one-stop promotion, platform operation, the combination of online shopping businesses and conventions and exhibitions, and other modes have strongly promoted the in-depth development of cross-border e-commerce. The consciousness of e-commerce applications in the whole society has continuously enhanced, and the application skills have effectively improved. Relevant departments have initially established a working mechanism for collaboratively promoting the development of e-commerce. A series of policies, regulations, and standards have issued around the topics of electronic certification and online shopping. The e-commerce development environment is getting better and better.
Based on type, the global retail logistics market classified into Conventional Retail Logistics and E-Commerce Retail Logistics. The Conventional Retail Logistics segment captured the largest market share in 2019. It is attributable to the growing adoption of conventional retail logistics services by a section of consumers that have limited dependence on the Internet and prefer traditional retail options.
E-Commerce Retail Logistics will be the fastest-growing segment in the forecast period. It is due to shifting in the retail e-commerce sector like the larger share of demand expected from tier II and tier III cities and air to surface movement, along with the significant number of investments by global companies in retail logistics.
Based on the solution, the global retail logistics market segregated into commerce enablement, supply chain solutions, reverse logistics & liquidation, and transportation management. The supply chain solutions segment accounted for a higher revenue share in 2019 and projected to dominate the retail logistics market by 2027. It is primarily attributed to the supply chain help in fast direct-to-consumer and direct-to-store shipping and enhances warehouse efficiencies and optimize inventory.
The reverse logistics & liquidation segment will grow with a lucrative growth rate in the forecast period. As it attracts and satisfy consumers with a simple returns policy, efficiently process returned goods, and clear out unneeded inventory and recuperate value.
Based on the mode of transport, the global retail logistics market classified into Railways, Airways, Roadways, and Waterways. Airways segment will hold higher market potential by 2027. It is owing to airways enable fast and frequent transport of retail goods across the international border.
Railways held a significant market share in 2019. It is due to the growing demand for railways in long distances transportation of retails products in domestics regions.
h3>Region Segmental Analysis
Based on geography, the global Retail Logistics market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific is slated to account for a significant share by 2027 in the Retail Logistics market. The growth in the region can be attributed to the huge development of e-commerce business coupled with the presence of a large consumer base for the retail product in this region.
North America is projected to provide significant growth opportunities due to the advancements in information technology and the transportation industry, along with the surge in cross-border trades’ activities.
Companies such as C.H. Robinson Worldwide, Inc., Deutsche Post AG, Expeditors International of Washington Inc., FedEx Corp., J.B. Hunt Transport Services Inc., Kuehne + Nagel International AG, Penske Truck Leasing Co. LP, Ryder System Inc. The Maersk group, United Parcel Service, Inc., XPO Logistics Inc., and Panalpina are the key players in the Global Retail Logistics Market.
By Mode of Transport