Direct-to-consumer companies in India are expanding quickly and widely. Redseer predicts that by 2027, its gross merchandise value (GMV) will increase to $35 billion. Since a few years ago, other companies have seen growth, including MamaEarth, Kama Ayurveda, Hopscotch, and The Sleep Company. Redseer, however, asserts that the D2C market is still in its early stages. It continued, “Brand creation is becoming simpler and more rewarding.” However, they are moving quickly and are predicted to increase at a 40% compound annual growth rate (CAGR) over the following four years.
They will grow faster than both the overall eCommerce market and the retail sector.
They will grow faster than both the overall eCommerce market and the retail sector. Their growth rate is 1.6 times that of the e-commerce market and three times that of the retail sector. Third-party logistics (3PL) businesses will benefit from their expansion as D2C brands do not use conventional distribution channels. By 2027, there would have been half a billion D2C shipments. As demand differs across cities and regions and the necessary logistics investment is on the higher side, 3PL solutions fit in well with the D2C industry. To guarantee consistency of experience, brands require trustworthy logistics partners with a bigger footprint throughout India, according to Mrigank Gutgutia, partner at Redseer.
Their growth rate is 1.6 times that of the e-commerce market and three times that of the retail sector.
The majority of direct-to-consumer (D2C) items have a variety of requirements, including return management, cold storage supply chains, easy claims, and more. In order to prevent damage, home and general merchandise brands also need a high level of shipment protection. On the other side, food brands operate with reduced profit margins and look for low-cost transportation. In order to facilitate speedy delivery, brands need extensive networks and quick delivery in cities.
In order to prevent damage, home and general merchandise brands also need a high level of shipment protection.
However, tech-enabled reliability, shipment protection, and inexpensive pricing are what D2C brands in India seek the most, with pan-India reach being a reasonably common expectation, according to Gutgutia. The keys to success for 3PLs vary greatly based on the type of D2C players. Brands that require inexpensive shipping employ XpressBees and Shadowfax. Brands who want efficient and dependable tech-enabled delivery choose Delhivery and Blue Dart. The greater focus on tier 2 cities and beyond is one of Ecomm Express’s strengths.