Share on Twitter
In the past two years, we have seen tremendous growth in the number of D2C brands in India. With D2C, we mean brands that sell their products and services directly to consumers without any involvement of middlemen. These D2C brands have gained popularity in the Indian and international markets, not just because they sell products and services consumers need but also because they bring their brand closer to the market through digital channels. But what is leading this growth?
Since the global pandemic in the year 2020, the D2C model has gained immense popularity in the Indian business landscape. Three important shifts in the sector drive this exponential growth. First, Indian brands, including new-age startups, are embracing D2C commerce. Secondly, most non-eCommerce traditional brands have started investing in their online storefronts to attract all types of consumers. And thirdly, the pandemic has changed the way consumers shop. More than 80% of consumers, according to a study by Yahoo and Mindshare, now prefer shopping online. Read the blog post further to unfold what 2023 holds for these D2C brands.
Hyper-personalized Shopping
The term hyper-personalized refers to offering a highly personalized shopping experience to consumers based on advanced analytics, real-time behavioral data, and services that cater to individual needs and aspirations. With hyper-personalization, brands can provide consumers with a personalized, targeted, and fine-tuned shopping experience. With the onset of 2023, more and more consumers are inclined to hyper-personalized shopping experiences, which the D2C is catering to effectively. By understanding consumers’ engagement patterns and other metrics, D2C brands are trying to create more holistic experiences possible for their customers. Wake fit is one such D2C brand that goes by the motto of ‘right to nap’ and has gained much appreciation from consumers in the hyper-personalized segment of the D2C business model.
Online to Offline Approach
With the global pandemic rules easing up, a majority of D2C brands had to shift from online to offline approach. And adopting an omnichannel approach was the way to go for such D2C brands. Although digital stores have an important role to play, they are now shifting to offline stores to publicize their brand to the maximum. With an offline presence, the brands can cater to a larger audience base and interact with their customers through multiple touch points. In the current scenario, more and more D2C brands are growing beyond digital channels and spreading their storefronts across offline channels as well. Licious, Mamaearth, and Sugar Cosmetics are some of the Indian D2C brands which have shifted to offline business models as well to gain more consumer databases.
Social Media
Needless to say, given the many benefits, nowadays, most brands are leveraging social media for vast audience outreach. Social media provides a wide landscape for D2C brands to showcase their brand to consumers and grow. According to several studies, the social media market is expected to grow at a staggering 30.8% CAGR from 2022 to 2030 [study]. Almost 70% of D2C are already using social media at their disbursal. The trend holds great potential for the year 2023 and for coming FYs as well. Neeman’s, Bluestone, and Wow Skin Science are some of the D2C brands which have made their presence on social media as well and increased their audience base.
Product Sampling
Nowadays, consumers are loaded with product offerings which often leads them to decision fatigue. This is where most D2C brands have come up with product sampling, which helps consumers decide whether to go with the product or not. Smitten is one such D2C brand with hundreds of product trials from the best of the brands for its consumers. Most storefronts you visit nowadays would give you samples to try out their newest products. The brands also collaborate with other e-Commerce giants to offer their products as samples to spread brand awareness. Hence, product sampling gives exposure to brands and allows consumers to go with the brands they find most suitable.
Express Checkout
The rise of FinTech as a sector is not unknown to the Indian business landscape. Nowadays, consumers at large are looking for seamless shopping experiences, which is why D2C brands are focusing more on making the buying experience a smoother one for their customers. According to a study by Baymard, the average cart abandonment rate is 70%, among which 24% are the ones who are asked to create their user account, and 17% are the ones who find the checkout process too complicated [Source]. D2C brands, such as Mokobara and The Souled Store, are leveraging new and innovative checkout solutions that remove the arduous task of filling lengthy account creation forms, resulting in easy and faster checkouts.
Sustainability
Climate change is real, and it is affecting both consumers and businesses at large. Consumers today trust brands that focus on the reduction of carbon emissions, minimizing wastage and practicing ethical trade rules. That is why sustainability is now more important than ever and will continue to dominate the D2C space even in 2023. Sustainability is an undeniable truth that is accepted by a majority of D2C brands today. Brands such as mCaffeine and Conscious Planet recycle their plastic monthly to contribute to a healthy planet.
In summary, the D2C segment has transitioned beyond expectations, and with the current market dynamics, the space is anticipated to grow even more in the coming years. With the rapid growth in data analytics, AI, and technology innovation, D2C brands are only growing by leaps and bounds.
For more such blog posts, visit the blog section on our website. If you are a startup looking for growth opportunities, become a DPIIT-recognised startup today.
