May 17, 2020

Report predicts boom in rural Indian eCommerce by 2020

India eCommerce
India ecommerce growth
India rural ecommerce
India rural internet
Jennifer Johnson
1 min
In the next few years, half of all new Internet users in India will come from rural communities.
According to a new report by Boston Consulting Group (BCG), a large portion of Indias eCommerce activity will originate in rural areas for the remainder...

According to a new report by Boston Consulting Group (BCG), a large portion of India’s eCommerce activity will originate in rural areas for the remainder of the decade.

The report anticipates that almost half of all new Internet users in India will come from rural communities and that rural users will make up about half of the total number of Indian Internet users by 2020.

Last year, BCG predicted that India’s Internet economy could triple in size to US $200 billion in the next five years, driven by growth from rural markets.

The report cites Chinese eCommerce giant Alibaba as a model for how companies can best bring online shopping to rural consumers. In 2014, the company invested $1.6 billion to set up 100,000 service centres in rural China, and now has a presence in some 16,000 villages.

Alibaba's eCommerce ‘outposts’ are equipped with computers, and give users a place to collect their online purchases as well as pay utility bills, add credit to their mobile phones and book travel.

At present, two-thirds of Indian Internet users get online using inexpensive Internet-enabled phones with 2G or 3G connections. BCG based its observations on surveys of 4,000 rural Indian consumers in 27 villages and 14 states. 

Source: Bloomberg

Supply Chain Digital's August issue is now live. 

Follow @SupplyChainD on Twitter.

Supply Chain Digital is also on Facebook. 

Share article

Jun 24, 2021

Kuehne+Nagel cuts carbon footprint by 70% for Honda China

2 min
Road-to-rail logistics solution will reduce carbon emissions at the automaker by 70%, stripping 16,000 tonnes of CO2 from its supply chain

Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel

The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018. 

KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management. 

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive. 

After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total. 

"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”

Kuehne+Nagel’s Net Zero Carbon programme 

Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners. 

Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”. 

As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030. 

Share article