Emergence of D2C Sector

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India’s rapidly rising Direct-To-Consumer (D2C) sector has made a positive impact on the packaging sector as the demand for corrugated boxes has increased by 200%, revealed JD Mart Consumer Insights.

Consumer trends on JD Mart, India’s latest B2B platform from Just Dial, suggest that demand for a wide range of corrugated boxes has been rising steadily across the country.

 YOY Demand for scrap boxes increased by 200%, laminated boxes by 700%, die-cut boxes by 540%, vegetable boxes by 200%, United Nations approved boxes by 75% and 122% of chick boxes .

Prasun Kumar, CMO, Just Dial, said “The increase in demand for corrugated boxes on JD Mart is in line with the growing growth of the D2C industry.

Corrugated box industry is valued at around Rs 30,000 crore and we sincerely try to deliver online through JD Mart. We see huge demand in key hubs and JD Mart as a platform will help supply to meet this demand seamlessly.

For scrap boxes, Delhi and Pune were the two cities that saw maximum demand. Among Tier-II cities, Vadodara and Jaipur were the two centres that saw good traction for scrap boxes.

Pune topped the demand for laminated canned goods, followed by Mumbai in second place. For cutting boxes, Mumbai has generated maximum demand across India, with Pune and Delhi taking second and third place respectively

For vegetable boxes, Delhi topped the city with maximum demand followed by Ahmedabad and Pune. Bangalore was the leading city when it came to generating maximum demand for chick boxes and for UN approved boxes Mumbai topped the demand.

This rise in demand has been augmented by the explosion of D2C brands in fashion, cosmetics, consumer electronics and food. These new-age digital-first brands are now challenging legacy brands by adopting a D2C route and engage directly with the growing numbers of digital shoppers. As per industry estimates, India’s D2C industry is expected to touch $100 billion by 2025 from $33.1 billion in 2020.

The new ground reality also demands companies to be prepared for different scenarios and challenges in business. Logistics SaaS tools can enable businesses to come up with optimal game plans that can tackle these challenges efficiently. 

Whether planning to expand retail sales by entering the D2C market, or trying to optimize existing D2C operations, it’s essential to consider implementing intelligent logistics tech in your D2C supply chain to gain a competitive advantage while fulfilling customer expectations effectively.

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