Mohit Rana, partner, Redseer Strategy Consultants shares key figures, trends and insights about the country’s burgeoning D2C market at the India D2C Summit & Awards 2023
Mumbai: The D2C channel across the world has been responsible for giving wings to many entrepreneurial dreams. In India, though the market is at its nascence stage, the growth being witnessed is phenomenal.
According to Redseer Strategy Consultants, a leading consulting firm, India is home to 9,000 D2C brands. “D2C or direct-to-consumer are independent brands which are digital-first,” explained Mohit Rana, partner, Redseer Strategy Consultants in his presentation ‘Translating D2C data points into actionable insights’ on the first day of India D2C Summit & Awards 2023.
In his presentation, Rana highlighted that fashion rules the D2C game in India with about 500 brands followed by packaged food and beverages with about 250 brands, beauty with about 200 brands, home and general merchandise with about 180 brands, health and fitness with about 170 brands and electronics with around 90 brands.
D2C brands in the country have been growing at a CAGR of 60% and account for over 10% of Indian e-commerce sales, he shared. “Across categories, D2C brands have consistently emerged amongst the top-selling brands on eCommerce platforms,” Rana added.
RedSeer estimates that the market would touch $25 billion in the next four to five years. The key drivers fuelling this growth would be targeting niche/premium segments, differentiated product offerings, advanced customer targeting tools and digital agility in the organization.
Today, we have many digital-first and traditional players competing for a share of the online market. Over 45% of digital disruptors are digital-first companies, he shared.
On an average, digital-first brands drive more than 75% of their sales online while traditional brands do around 30%. According to him, we would be witnessing many traditional offline companies launch their own D2C brands to join the D2C bandwagon.
India D2C Summit & Awards 2023, presented by DHL and powered by GreenHonchos, is being held on the 7th and 8th of June at The Westin Mumbai Powai Lake. This year, the annual event dedicated to promoting and supporting the growth of direct-to-consumer (D2C) businesses in India, brings together more than 200 speakers, 1000 attendees and 400 brands and companies for two days of Knowledge and networking.
The event also recognizes and celebrates the achievements of outstanding D2C brands through its awards.