With evolving consumption trends in metros and tier-1 cities across India, as well as increasing demand for convenience from customers, the requirement for in-city warehouses is rapidly gaining prominence.
The goal of these in-city warehouses is to move inventory as close to the consumer as possible, minimizing transportation time and cost which leads to supply-chain efficiency. However, as current in-city warehouses cannot keep up with the changing demands of existing users and the specialized requirements needed, there is a high demand for newer Grade A in-city warehouses that offer better build quality, infrastructure and features.
Key factors driving the demand for Grade A in-city warehouses:
- Superior build quality and compliance
- Better infrastructure and features offered
- Poor quality of alternatives
- Unit economics
In this report, our A&M business transformation experts Manish Saigal, Farhaan Mukudam and Aabhaas Parik explore in detail the high demand for Grade A in-city warehousing, the key challenges faced by developers with their in-city projects, and the complexities of operating an in-city warehouse and how these can be addressed.
Originally published 26 May 2024
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