, the country has the third-largest digital shopping base after the United States and China. This means that D2C, or digital-first brands, which 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 600 or more direct-to-consumer brands with estimated
in 2023. D2C brands experience more freedom relative to realigning, and launching new products, and give 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.
D2C brands in India
D2C brands are available across a wide range of segments such as grocery and gourmet, beauty and personal care, health care, consumer electronics, and many more. A great combination of major and mid-sized investors has supported India's D2C initiative. As a result, there was an increasing amount of funding in the D2C brands in the early stages. About
105 deals were invested worth 2.14 billion U.S. dollars in D2C brands in 2021. In three or five years following their start, several D2C brands in India have surpassed the one million Indian rupees revenue threshold. Lenskart, Licious, BoAt, and Mamaearth are D2C brands filling niches, building aspirational brands, and adding remarkable value to their respective industries. Generation Z consumers who heavily rely on digital platforms for updates and trends have a stronger readiness to try out new brands and shop online. This has resulted in expanding personal buying trends that are ideal for D2C's targeted and customized purchasing proposal.
Growth in D2C sector
One factor contributing to the D2C boom 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 was 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. In contrast, the marketplaces saw a growth of 59.6 percent while
branded websites grew by over 80 percent in the fiscal year 2022. 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.
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