Unboxing India’s D2C Disruption

Hey there!

Ever noticed how your favourite brands are just a click away these days? Well, you’re not alone! The Direct-to-Consumer (D2C) revolution in India is skyrocketing, set to hit a whopping $100 billion (source: Inc42), with fashion and clothing startups leading the charge with a projected growth of $43.2 billion by 2025.

In a country boasting over 190 million digital shoppers, the surge in D2C brands is more than a trend – it’s a shift in how we shop and what we love. But hold on, rewind a bit! Before we dive into the nitty-gritty of the D2C phenomenon, let’s start with a simple question: When and where did this all begin? 

The Beginning

The roots of India’s D2C journey can be traced back to the early 2000s when e-commerce platforms started to gain prominence. However, it was in the last decade that the D2C model truly found its wings. Fueled by a burgeoning middle class, increasing digital literacy, and a quest for personalized experiences, entrepreneurs began to realize the untapped potential of connecting directly with consumers. Simply put, people found it extremely easy to buy products without leaving their couches or their fingers from their smartphones. 

The D2C Disruption

D2C brands aren’t merely creating new categories; they’re finding their sweet spot in existing ones. From fashion to food and beyond, these brands have etched their presence across every consumer industry. What sets them apart? It’s the fresh perspective they bring – be it in their products, branding, packaging, or services. Let’s break it down with some examples.

While much has been said about Mamaearth’s controversial IPO, there’s no denying that it was a trailblazer in toxin-free cosmetics. After mastering a niche, the company soon expanded into personal care and makeup, even going public as the first D2C brand to do so. 

Then, there’s Bewakoof, turning heads since 2012 by selling everything from trendy clothes to stationery and teaming up with Marvel, F.R.I.E.N.D.S, Star Wars, Disney, DC, and Looney Tunes for some seriously cool merchandise.

And who would’ve thought that brands like Chai Point and Chaayos could make Chai a star? These new-age food companies gave the humble chai a much-needed makeover into a modern, comfy cafe experience with top-notch ingredients and consistent preparation – a far cry from the traditional chai stall.

But the trends don’t end there. The D2C landscape is always on its toes with rising businesses and acquisitions in the corporate world.

The Trends in D2C 

1. From digital-native to omnichannel – The D2C space is undergoing transformative trends that signal a shift from digital-first to omnichannel strategies. While online presence remains pivotal, D2C brands recognize the need for physical touchpoints, leading to the establishment of brick-and-mortar stores and brand experience centres. 
2. Acquisition by bigger brands – Another trend is the acquisition of D2C brands by traditional companies aiming to tap into niche markets and diverse demographics. An example of this is Reliance Retail Ventures Limited acquiring a majority stake in Ed-a-Mamma, a sustainable children’s clothing brand, reflecting a broader wave of conglomerates aligning with D2C values. 
3. The rise of D2C Enablers – The explosive growth of D2C brands has created a fertile ground for a new breed of companies: D2C enablers. These specialised service providers are emerging to address the unique needs of D2C brands, fueling their success and shaping the future of e-commerce. For example: E-commerce platform providers such as Shopify or Wix and fulfillment and logistics solutions such as Delhivery and XpressBees have seen a huge push in demand thanks to D2C brands.