India D2C Market: Current Analysis and Forecast (2024-2032)

Direct-to-consumer (D2C) is a business model that comprises the sale of products or services by a company directly to a consumer. This bypasses all traditional intermediaries like retailers, wholesalers, and various third-party distribution channels. With such kind of business models, brands hold more control over the customer experiences of their product, additionally, helping them to control over pricing and the designing the marketing strategies of their brand. D2C companies primarily use either their own website or social media along with other digital marketing activities to produce further add-on convenience and personalization when making available to target consumers. This means cutting down the middle-persons. This enables brands to reduce the price for the end consumer while building stronger relationships with them and, more importantly, collecting valuable data to improve product offerings and customer service. This model has gained popularity in spaces like fashion, electronics, and wellness, among other industries.

The D2C Market is expected to grow at a significant rate of around 39% during the forecast period (2024-2032). As per the higher growth of internet using population as well as increasing inclination towards online purchase with the ease of payment modes such as Paytm, Phone Pay, Google Pay, and other digital wallets and other card based online transactions the D2C market has majorly benefited. Furthermore, many of the leading D2C companies have also listed them on other major ecommerce sites such as Flipkart, Amazon, etc., apart from their company websites which has increased their presence and supply network.

Additionally, the growth of ecommerce has substantially supported the D2C business across the country as companies have gained major prominence through these channels. Ecommerce websites as Amazon, Flipkart, Myntra, etc., provide wide variety of products and offer wide range of offers through payment solutions with discounts. Additionally, the speedy delivery process of the products to pan India has also benefitted the companies to expand their reach to a wide number of customers. Furthermore, the emergence of quick commerce services in Tier-1 and Tier-2 cities have also provided ample push to the D2C companies as quick delivery in 10-20 minutes of electronic goods, apparel, healthcare product, pet products, etc., expand the sales of the companies.

Considering all the major changes in the country the demand for D2C is further anticipated to rise during the forecasted years. As the number of customers using internet of product purchase and making purchase decisions through social media marketing and availing speedy delivery of goods in lucrative pricing the D2C companies would emerge as key market participants in consumer goods category in India further translating into the growth of D2C market in India during 2024-2032.

Based on product categories India D2C market is segmented into Fashion & Accessories, consumer electronics, food & beverages, healthcare, home decor and others. Fashion and Accessories have earned a considerable market share in the Indian D2C market owing to the increased acceptance of online shopping, a rise in disposable income, and a growing obsession with fashion among consumers. Furthermore, the last few factors that have propelled convenience to a new level are doorstep delivery, variety, and customization options. Influencer marketing and social media in general help brands engage relatively straight with their target audience, hence boosting sales and brand loyalty. Additionally, with the growing offers on various online products the fashion and accessories categories have earned a sizable market share in India D2C market.

The D2C market in India is divided into urban and rural on the basis of demographics. Of these urban category has held a sizable market share due to higher purchasing power of urban population. Additionally, urban centers are well connected to infrastructure due to which the delivery timing in the regions as lesser as compared to the rural areas in India. However, with the rising penetration of internet and improving logistics infrastructure the rural sector is also portraying better growth which is anticipated to be continued in the forecasted years.

For a better understanding of the market adoption of the D2C market, the market is analyzed based on its country-wide presence in regions such as North India, East India, West India, and South India. North India has held a sizable market share among these due to rising urban centers, there is a pressing need for the consumable and lifestyle goods. Additionally, the urban centers across the country have increased exponentially both in number and in population that has led to the higher demand for online goods promoting the market of D2C.

Some of the major players operating in India D2C market include Imagine Marketing Limited (Boat Lifestyle), Honasa Consumer Limited (Mamaearth), SUGAR Cosmetics, Wakefit, Amishi Consumer Technologies Pvt Ltd. (The Mom Co.), Delightful Gourmet Pvt Ltd. (Licious), Earth Paws Pvt Ltd. (Heads Up for Tail), URBAN LADDER, Zivame, and Bombay Shaving Company.