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E-commerce has emerged as the Indian retail ecosystem’s backbone last year when the world was hit by one of the worst pandemics ever witnessed. As we scramble our way with the new reality, India’s retail ecosystem, on the other hand, has seen a radical change. With e-commerce becoming an integral part of the retail industry, companies are finding new ways to sell and connect with consumers digitally across demographics and psychographic. The massive push to the digital economy has given companies a platform and a huge opportunity to connect directly with consumers which has further led to the emergence of a plethora of D2C brands.
jAmid the coronavirus pandemic, there was a surge in online sales as people stayed locked in their homes. Now, even traditional FMCG players are digitising themselves to win these consumers.
The growth of e-commerce and maturing online shoppers has led to the growth of e-commerce and D2C brands in India. Post lockdown there has been a significant surge in D2C brands, companies are now investing in setting up their own online stores. Brands are adopting the direct-to-consumer approach to develop a strong connection with consumers and offer a personalized brand experience.
Direct to consumer or D2C brands are spearheading a retail revolution in India, thanks to social media. What took businesses decades of painstaking marketing and sales is now being achieved in a matter of a few months.
Can D2C or direct-to-customer be the harbinger of growth for India’s burgeoning ecommerce sector, where funding had been largely going to B2B platforms till late 2020? That certainly seems true for the Indian startup ecosystem, where funding deals for startups with native D2C platforms picked up pace sharply in the first quarter of 2021.
US D2C ecommerce sales, including both digitally native and established brands, grew 45.5% last year—generating $111.54 billion and making up 14.0% of total retail ecommerce sales, per our estimates. We expect relatively steady growth each year through 2023, with D2C ecommerce sales reaching $174.98 billion at that time.