Why are the majority of Indian transport companies NOT getting RESPECT from the markets?
The Indian reefer transportation business presently operates in a great area and offers its services throughout the world. According to data revealed by IMARC Group, the global refrigerated transport market reached US$ 16.8 Billion in 2021. The market gets expected to bloom to US$ 23.3 Billion by 2027, at a CAGR of 5.51% from 2022-to 2027.
IMARC Group expects the Indian reefer transportation market to grow at a CAGR of 19% from 2021-to 2026.
Considering the tropical climate of our nation and the large area that comes under our domestic market, surprisingly, reefer transportation has not done as well as it should have. Many reasons lead to contract loss, reputation deterioration, load rejection, and other issues. Lack of knowledge and business skills, no vision and predictability, outdated systems, lack of advanced technology, and lack of regulations all together; hinder their success. These factors, either together or individually responsible for their bad reputation in the Indian market.
Reefer transportation of temperature-sensitive goods transportation system; is well-made and neo-technological transportation method for perishable goods like meat, fruits, milk, vegetables, pharmaceuticals, and other goods over very long distances.
They are enclosures with proper air conditioning and refrigerating facilities that can keep large bulks of perishable products intact for days on end. On top of that, these shipment holders get aided with the sturdy road, airways, and waterways commutation.
What Are The Types of Reefer Transportation Available in The Present-Day Market?
Based on transportation mode: reefer transport is available for roads, airways, waterways, and even railways. For countries as large and varied as India, this technology is generally considered a godsend.
On the road, tractor-trailers and straight trucks both provide reefer facilities. Ships and steamers of various sizes commute with refrigerated commercial goods every day.
Why is Reefer Transportation Failing To Capture The Indian Market?
Many reasons can account for its limited growth. These are:
1. Bottleneck: many cold chain operators are the bottleneck. They struggle to manage the demands, delays supplying goods, poor packing quality, and many other things; are causing their growth constraints. Why? Because they are the only responsible person. They keep their hands on every aspect of business, but it can be problematic. Although the employees are not efficient in their work, doing everything by themselves can hinder their growth. A delegation can free up much time to dig for new growth opportunities. They are not able to pay attention to core functionalities in their business.
2. Lack of Business Knowledge: in reefer transportation, many people jump into the market without having the skills and knowledge required to run a business. A copy cast syndrome is quite common in almost every business. If his business is doing well, then mine will succeed too; with this thinking, many people step into the reefer transport business, and later, they find it difficult to run. To maintain a smooth workflow, the business owner must have a firm knowledge of every aspect of the business. They should be able to make the right decision for their business in tough times.
3. Unqualified Players: A reefer transport business is not as easy as people think. Drivers in reefer transportation must know about the basics of these businesses like; correct loading and unloading practices, the effect of temperature and weather on sensitive goods, and safety hazards plans and risk management. The operators in the reefer transportation business should have basic knowledge about the refrigeration system they are handling. An unqualified player having little or no knowledge about reefer transportation can be a weak link in the entire chain. A weak link can break the whole chain, and eventually, a business suffers losses.
4. Lack of Marketing: how will they earn respect from the market if the market does not know about them? In every business, customer acquisition is the key to success. To attract customers first, you need to make people aware of your service. Even the world has shifted to digital platforms to showcase its products and services. In reefer transportation, business owners neglect to showcase their service and leave behind the curtain. These curtains are preventing their customers from reaching them. Thus to get market attention, they need to showcase their services to the audience. Digital marketing can open the doors to several opportunities at a global level.
5. No Vision: many reefer transportation businesses operate without having a vision and strategy to run a business. Preparing a plan to achieve sustainable growth is essential. A strategic business plan gives an insight into the business stand in upcoming years. Forecasting business growth helps to make strategic decisions regarding business activities.
6. Lack of System: every business comprises a vast system, including HR management, sales and marketing, accounting, branding, and customer service. The reefer transportation businesses do not have an appropriate system and efficient workforce to manage all these tasks efficiently.
7. Unable To Keep Pace With The World: currently, the cold chain market in India is operating in the industrial revolution 2.0 phase, whereas the world has shifted to industrial revolution 4.0. Industrial revolution 4.0 has brought a new digital wave that can boost the transportation industry's growth with automated solutions. Industrial revolution 4.0 has introduced artificial intelligence and the internet of things(IoT) that is now ruling the world. The industrial revolution 4.0 brought a significant transformation in the way; supply chains work. It has transformed transportation businesses; into more flexible, more accurate, faster, and more agile.
8. Lack of Regulation: A reefer transport business includes several links from starting to end. Regulation in every aspect of the business is essential to maintain a smooth workflow. Lack of regulation can invite penalties, cause delay in processes, rejection of load, and brand image deterioration. Keeping businesses regulated and compliant with the laws can help a business run smoothly. Laws keep changing, and many reefer transport businesses find it daunting to cope with these regulations.
Final Words:
The global cold chain market is on the rise, a rise as steep as never before seen. India is a pioneer in producing perishable items like meat, eggs, fish, pharmaceuticals, horticulture products, and dairy products.
These products can better the lives of millions of Indians if correctly provided to them and can also be sold to the international market at much higher rates. Integrating reefer transportation into our markets; can be a huge step forward in this direction.
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