Trends in Indian D2C Industry


Direct to consumer marketing (D2C) is a marketing strategy in which a business promotes and sells a product or service directly to consumers, bypassing any middlemen. The number of businesses that manufacture, promote, sell, and ship their own products is on the rise, and this strategy's growing popularity is rapidly changing the business landscape as a whole.

There was a lot of technological adoption and innovation in the year 2021. The transition from offline to online channels, as well as the emergence of the D2C market to meet the needs of new generation customers, is one of the most significant shifts. It has hastened the transition to a more digital world and influenced long-term consumer purchasing habits. According to the Economic Times, between January 2020 and August 2021, VC firms invested more than USD 500 million in 146 direct-to-consumer brands. Venture capitalist investments will skyrocket, and early-stage VCs will start seeing exits in 2022, assisting D2C brands to reach new heights.
Large brands shifting gears
The pandemic crisis forced brands across verticals to rethink their strategy and realign their operations, forcing them to rethink their strategy and realign their operations. The transition from offline to online channels, as well as the emergence of the D2C market to meet the needs of new generation customers, is one of the most significant shifts.
Rise in digital markets
People's purchasing habits are changing as they learn to live with the pandemic, both inside and outside the country. For some, this entails more online searching and research, while for others, it entails locating direct selling shops where they can purchase products online. According to a new report, authenticity is also becoming a major consideration when searching online.
Increase in users
According to Google's Year in Search Report 2021, the exponential growth of the internet user base has resulted in millions of new and unique searches per day over the past two years, and businesses will need to adapt in how they respond to this customer transition. As a result of the coronavirus outbreak, online first shopping experiences and direct selling brands have gained traction, according to the India arm of the American multinational technology firm.

As businesses moved online to meet customer needs, search interest in direct-to-consumer, or D2C, brands increased by 533 percent. Searches for "which brand is good" increased by 41% as Indians conducted research before making purchasing decisions. Customers searching for a brand's official store have increased by up to 80%, according to the report.
Data-driven insights drove growth
The demand for personalised shopping experiences is another consequence of universal Internet access. Brands can now offer this on their D2C storefronts thanks to AI-powered technology. Brands were able to capture their customers' preferences based on factors such as location, demographics, and browsing history thanks to data and analytics. Tailored recommendations increased conversion rates while also bringing in repeat business.
Expected Growth
According to Statista, the total addressable D2C market in India is expected to grow by more than 15 times between 2015 and 2025. The D2C market was estimated to be worth $33.1 billion in 2020. This market is expected to nearly triple in size by 2025, reaching $100 billion, with fashion and accessories being one of India's largest D2C segments.
Buy now, pay later
Since the 2016 demonetisation, digital payments have been on the rise in India, and contactless payments have become the norm everywhere as a result of the post-Covid security concerns. Almost 80% of online transactions happen through digital wallets, bank transfers and cards now. Furthermore, flexible payment options such as no-cost EMI or zero-interest EMI have enabled people with lower or more uncertain income to make purchases on the internet. Banks and non-bank financial institutions (NBFIs) have also been quick to partner with online retailers, making it easier for D2C businesses to offer a variety of payment options.
More Brands getting listed in 2022
Consumers' attitudes toward online shopping will remain positive despite the COVID-19 outbreak. Following Nykaa's success, other D2C companies are likely to consider going public if they achieve a certain level of growth and profit. As a result, India will see a significant amount of private investment in the future, which means that more IPOs are expected in 2022.

In general, D2C (direct-to-consumer) businesses have a bright future. There are always new concepts being developed by entrepreneurs, and traditional retailers are getting in on the action. The fact that more people are getting involved in the business is encouraging for the industry. Direct-to-consumer (D2C) is a marketplace that sells directly to consumers. A lot of amazing things are going to happen in 2022.

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