India is one of the fastest and biggest retail markets globally, which is set to surpass a mark of $1.7 trillion by 2025. The Indian eCommerce market is set to re-strategize and segmentize its unstructured market empowered by a 639 million internet-savvy population, growing at a speed of 24%. Moreover, the Indian market has added 80 million shoppers in the last three years, taking up to 130 million users today.
In addition, the outbreak of the COVID-19 pandemic has further pushed users to look towards the online marketplace to fulfill their needs. Hence, the country’s eCommerce marketplace is experiencing a revolution where people from all age groups make a considerable contribution. With the thriving internet ecosystem, newer and untapped business models are emerging to challenge well-established and traditional business practices.
Direct-to-consumer (D2C) distribution channels leverage the emotional connection with the end consumers by forming a distinguished identity with a clear and concise market outreach. This innovative business model makes effective and efficient use of technology for fulfilling the evolving consumers’ needs. This is an ideal system to connect, explore, service, and gather feedback where consumers are the core element of the overall value-creation channel.
Sensing the market opportunities and need to fill the gaps created by the global counterparts, D2C business models see a tremendous rise in the country today. D2C brands aim to scale their business online and it is revealed in the current studies that India is a playground for more than 800 D2C brands across various segments and categories, summing up a targeted market value of over $100 billion shortly.
According to the statistics projected by the Indian Tech Startup Funding Report, Q1 2022 has proven that D2C is a significant contributor to the eCommerce industry’s progress and development. Reportedly, in the first quarter of 2020, D2C startups saw a minor rise of $22 million, which counts at 5% of the integrated industry’s total funding. However, with an improvement in the Covid-19 figures in the country, the segment registered a growth rate of 28%.
If you are wondering, what gave a boost to the D2C segment even in the worst pandemic situation? The answer is eCommerce enablers and software makers - a breed of technology-loving entities that have caught the feel of the air. Crusading ahead on the dependable and easy-to-set-up digital-rich background along with customized marketing strategies paving the way for discounts and quick-delivery provisions, today’s D2C models are mushrooming every nook and corner of the country with an unmatchable pace.
As the Indian eCommerce market is saying hello to the hyper-growth stage, D2C businesses show attractive and economic incentives, offers, and deals to touch the horizon of the booming digital marketplace. eCommerce enablers and software developers leave no stones unturned to support this rising business model to fulfill the growing needs.
Indeed, the D2C business model has a golden future awaiting progress and growth; numerous challenges and hurdles are yet to be encountered and explored. Fortunately, an army of encouraging enablers and developers are working hard to smoothen the rugged terrains for D2C businesses. When different segments and processes become one, it becomes easier to reach the zenith of accomplishments. Isn’t it?
Pavankumar Baboori is an experienced Sr. Content Analyst who improves the workflow by identifying and resolving the content development gap. He works closely with the marketing team to deploy strategies for improving brand awareness, website traffic, search engine ranking, and lead generation activities. He gauges up marketing channels for the real digital transformations.
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