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Logistics and Ecommerce Industry

Overview

The logistics sector is a key motive behind increasing the capacity of developing and growing countries. It is about resourcefully moving merchandises and connect both local and international markets to the recent standards and needs. It provides a platform for sale and purchase by matchmaking between manufacturers and consumers. Initially, the platform provides outsourcing of goods, ambitious sales and easy cash collection. This can play a good part in improving the market statistics not only locally, but also, internationally. For a business of home appliances, the market is increasingly growing as the population Pakistan has increased upto 200mn in 2018 which was 142.5mn in 2001. It is 1.63% of the total worlds population. With these increasing trends, the electronics market and home appliances have experienced a boom. For example, production of ACs reached 196,503 units in July-Feb 2017-18 from Rs 158,949 units in same period last fiscal. This document would address the core value prepositions of such a business where demand is increasing day by day as Pakistan marked a growth of 3.1% in home appliances sector in 2017, where Japan and South Korea rested on 1.2% and 1.6%, respectively. China is working on creating a network of railways, roads, pipelines, and utility grids that would link China and Central Asia, West Asia, and parts of South Asia. This initiative, One Belt and One Road (OBOR), comprises more than physical connections. China Pakistan Economic Corridor (CPEC) is probably the first and the most successful route till date. CPEC has already structured an efficient transport and logistics system in Pakistan as it is bringing in $11bn investment in logistics sector which is 17.7% of the total CPEC investments. 

 

Market Segment

Regionally, the business to customer mode of Ecommerce has grown over the period of time. The Asia Pacific region has 47.48% market share of the total turnover of B2C ecommerce, globally. It ranges around $875.11Bn whereas, Europe’s turnover was around $472.62Bn in 2017 which is 25.64% of the total turnover. Accordingly, Middle eastern, South and North American regions have 0.49%, 1.53% & 24.68% market share in the global turnover of the B2C market. 

 

The total Ecommerce trade in the world was recorded to be $1.83Tr in 2017. Growing up from $0.52Tr to $1.53Tr between 2010-2016 with a CAGR of 20%. It is expected to grow to $2.19Tr in 2018 and grow exponentially high, ranging $3.14Tr till 2020. 

 

An overall fluctuation is seen in the ecommerce growth rate is seen from 2011 to 2017. it dropped down in 2014 by 6.92% as compared to 2013. a growth of 5.41% is seen in the recent FY 2017-18

 

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Existing Companies

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