D2C brands propel growth for e-tailers

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Direct to consumer (D2C) is a retail model where brands market, sell and ship their products directly to the consumer without involving any agents. D2C brands are said to be driving the growth in India’s e-tailing space with a strong 45% compound annual growth rate and thus has the potential to reach $70 billion over the succeeding years, said the joint report by Unicommerce, a unified software as a service (SaaS) platform for post-purchase experience management, and a retail consultancy expert Wazir Advisor.

According to the first edition of India’s Retail and E-commerce Trends Report for FY22, it is said that India’s online retail market is anticipated to grow at 32% with the highest potential to touch $225 billion.

Sales growth on e-marketplaces was pushed by magnificence and private care adopted by fast-moving shopper items, well-being and pharma segments. While splendor and private care reported order quantity growth of over 143% in FY22, FMCG and agriculture grew at 61.7%, and well-being and prescribed drugs 62.4% over the past two years.

Fashion and equipment reported order quantity to have grown up to 59.7%, whereas electronics and residential home equipment reported a growth of 34.7%, through the interval. India’s rural areas have been driving on-line retail growth. In the last two years, e-commerce growth was shoved by shoppers from tier II and tier III cities, with the younger and aspirational buying throughout segments to rework India’s e-commerce dimension.

Shoppers from tier II and III cities accounted for 61.3% of the market share in FY22, up from 53.8% in FY21. Order volumes from tier II and III cities grew at 92.2% and 85.2% from the 12 months in the past, respectively.

In significant, tier I cities grew at a slower tempo at 47.2%. “In the last two years, India’s retail business noticed a atypical evolution with wider expertise adoption, inclination to attempt new platforms, and altering mindsets of brands,” mentioned Kapil Makhija, chief govt, Unicommerce.

The report portrays an aggregate image of shoppers’ purchasing behavior within the last two years, which is expected to help retail brands analyse enterprise efficiency and plan future methods accordingly.

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