D2C market in India - statistics & facts
India has the third-largest digital shopping base after the United States and China. With roughly over 1.4 billion internet users and 250 million online shoppers. This means that D2C, or digital-first brands, that use the online platform to sell directly to the consumers without the traditional distribution network of wholesalers, stockists, and retailers, are experiencing an upsurge. Currently, India is home to 800 or more direct-to-consumer brands with estimated market size of over 80 billion U.S. dollars in 2024.
D2C brands experience more freedom relative to realigning, and launching new products, and provides an opportunity to change since the operations and supply chains are simpler and more efficient in this segment. Companies using the direct-to-consumer (D2C) channel inevitably develop an emotional connection with their customers, informed through a distinctive brand identity and an apparent value offering.
Moreover, a great combination of major and mid-sized investors has supported India's D2C initiative. In three or five years following their start, several D2C brands have surpassed the one million Indian rupees’ revenue threshold. Some D2C brands such as Lenskart, Licious, and boAt are filling niches, building aspirational brands, and adding remarkable value to their respective industries.
Besides Gen Z customers who heavily rely on digital platforms for updates and trends have a stronger readiness to try out new brands and shop online. This results in expanding personal buying trends that are ideal for D2C's targeted and customized purchasing proposal.
Despite this, D2C companies lack the capacity to compete with established e-commerce sites like Flipkart and Amazon. In fact, a majority of them sell on online marketplaces. Some companies even profit more from marketplaces than from their own channels. On the other hand, the marketplaces saw a growth of about 60 percent while the branded websites grew by over 80 percent. Moreover, selling via brand websites by large offline retailers is gaining momentum. Therefore, product and marketing innovation based on customer feedback is essential in building a successful brand relationship.
D2C brands experience more freedom relative to realigning, and launching new products, and provides an opportunity to change since the operations and supply chains are simpler and more efficient in this segment. Companies using the direct-to-consumer (D2C) channel inevitably develop an emotional connection with their customers, informed through a distinctive brand identity and an apparent value offering.
Revolution of D2C brands
In the rapidly growing digital landscape, the D2C brands have built strong market position by leveraging technology, social media engagement, and personalization. The most popular categories among consumers for D2C brands are grocery and gourmet, beauty and personal care, and fashion.Moreover, a great combination of major and mid-sized investors has supported India's D2C initiative. In three or five years following their start, several D2C brands have surpassed the one million Indian rupees’ revenue threshold. Some D2C brands such as Lenskart, Licious, and boAt are filling niches, building aspirational brands, and adding remarkable value to their respective industries.
Besides Gen Z customers who heavily rely on digital platforms for updates and trends have a stronger readiness to try out new brands and shop online. This results in expanding personal buying trends that are ideal for D2C's targeted and customized purchasing proposal.
Branded website growth
One factor contributing to the D2C market expansion is the convenience of establishing online stores. This has been, made possible by start-ups and new-age companies involved in developing a blockchain that is better able to fill in logistical gaps and affording them the possibility of creating online storefronts.Despite this, D2C companies lack the capacity to compete with established e-commerce sites like Flipkart and Amazon. In fact, a majority of them sell on online marketplaces. Some companies even profit more from marketplaces than from their own channels. On the other hand, the marketplaces saw a growth of about 60 percent while the branded websites grew by over 80 percent. Moreover, selling via brand websites by large offline retailers is gaining momentum. Therefore, product and marketing innovation based on customer feedback is essential in building a successful brand relationship.
