Scope of Logistics sector in Tier 2 & Tier 3 cities:

Recent trends indicate that the Indian logistics sector will have significant opportunities in the upcoming years. Among them are:

• In recent years, Tier II and III cities have seen an increase in consumer habits, leading to a change in attention toward logistics.
• With cognitive automation, artificial intelligence has proved critical in saving time, lowering expenses, increasing production, and improving accuracy.
• India's exports are on the rise, with the fiscal year 2018-19 setting a new high with an 11% increase.

Tier 2 and 3 towns such as Chandigarh, Coimbatore, Dehradun, Lucknow, Indore, Jaipur, Kochi, Ludhiana, Nagpur, Patna, Siliguri, Vadodara, Surat, Visakhapatnam etc. are emerging as new consumption centres as India experiences an e-commerce shift fueled by the COVID-19 epidemic. This has resulted in increased demand for storage in these areas.

An increasing standard of living in Tier I and Tier II cities is making them an attractive choice for the growth of the logistics sector. The major e-commerce portals have completely dominated the metropolitan sector, leaving no room for small firms. Hence, new companies have concentrated their efforts in tier 2 and tier 3 cities to expand beyond the present market and target other prospective and unexplored markets.

Due to the lack of branded stores and quality products, customers have to come to urban cities to purchase these products.

Recently, there has been a radical shift to online shopping rather than physical visits. Internet penetration is significantly increasing in India. With growing internet penetration in these cities, ordering products online has become simple.??

In these cities, half of the potential consumers are already using smartphones with internet access, compared to one-third of the population in tier-1 cities or metropolitan regions. As a result, it expands the market opportunity for the e-commerce industry. Nonetheless, the future of e-commerce is "multi-channel marketing."

The pandemic has helped accelerate the growth of e-commerce, thereby leading to growth in the logistics sector of Tier 2 & Tier 3 cities. Moreover, the reduction in costs has led to a boom in the industry making it the fastest-growing industry in India.?

Logistics is an ever-growing industry, from securing necessary supplies. This sector's development and strengthening will secure a brighter future.