We live in a nation of more than 1.3 billion people with diverse cultures and preferences and one of the largest retail markets in the world. The retail market is largely unorganized in nature here, as low number of malls and shopping complexes. The shift to an organized retail market will happen in the next five years in India. The shift to e-retail is huge especially due to covid-19.
Online Shopping- New Normal for Buyers
India’s rise in online shopping is fueled by the 639 million strong internet population, and COVID-19 accelerated the process by adding 80 million online shoppers in the last three years and that makes it 130 million today. During the pandemic there was the temporary closure of physical stores and the public was diverted to online shopping which gave rise to this D2C market and it flourished. Online shopping in India is expected to grow at a CAGR of 35%+ from $39 billion today to $200 billion over the next 5 years, also supported by internet and payment infrastructure developments.
Advancement of Consumption Pattern
Women, the new class of consumers have the final say in more than half of household decisions now. And more than half of them are online shoppers. Consumption trends are also progressing, new-age consumers want niche and customized products and are ready to pay large amounts for them. Traditional players are not able to fulfill that. So, every shopping experience is made keeping women as consumers in mind.
Inclination Towards D2C brands
Companies with D2C channels have an emotional connection with their consumers, fostered by a unique brand identity and clear value proposition. D2C brands are characterized by their innovative marketing style, efficient operational processes, and effective use of technology. With easy access to customer data D2C brands work on the shopping pattern and a feedback-led model and develop products to ensure that customer needs are met.
Emergence of D2C Brands in India
There are 800+ D2C brands in India as of April 2022 and the expected market opportunity by 2025 is $100 billion. India is witnessing a rise in D2C brands across categories. As many women-led businesses are been funded and early-stage funding activity is huge we can see many women-led D2C brands now. As women are the majority of consumers so the market has risen in products consumed by women. D2C brands such as Zivame, MyGlamm, WOW skin science, Mamaearth, Sugar cosmetics, and Spring Dairies, among others, are occupying niches and creating brands with extraordinary value in their respective sectors.
Future of D2C Brands in India
The pandemic has changed the game and made everyone realize that nothing is certain in business. And brands have been trying out new strategies in cost, retail experience, and research to provide a personalized experience to customers to excel in their segment.
To boost sales, D2C companies will play more in personalization and customization using more and more technology. Famous brands like super smelly which is a skincare brand and WOW Skin science are planning to increase their retail presence and expand pan India. All D2C brands will touch customers wherever they are online or offline.
Written by- Seema Lalwani
