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Ecommerce Insights - 3

How D2C ecommerce is unlocking new growth opportunities for brands

Selling D2C has disrupted the ecomemrce space by introducing a business model which gives greater control to brands. D2C brands in India have been able to cross the INR 100 crore benchmark in 2 to 8 years whereas traditional brands took 20 years on average to reach such milestones. By removing the middlemen brands not only boost their profit margins but can also foster customer loyalty by passing the price benefits directly to their buyers. D2C brands have greater flexibility to experiment with new business models and strategic marketing across different channels. Brands can personalize their offering to connect better with their target audience. Also, with direct access to customer data, D2C brands can make data-driven decisions about their branding, marketing and product launches.

Future Of D2C Ecommerce

  • 3X to 6X growth in direct to consumer market from 2016 to 2019

  • 19.2% was the growth rate of direct-to-consumer global market in 2021 and this rate is forecasted to be outperformed in coming years

  • 64% of consumers worldwide will opt for D2C buying regularly in 2022

  • 40% of online buyers are expected to spend more than 40% of their budget towards D2C brands in the coming five years

  • $100 billion is the worth of the Indian D2C market in 2025

  • $175 billion is the expected digital D2C sales in the USA by 2023

Source: Statista, BusinessInsider, Inc42, Invesp

D2C Ecommerce Trends

  • 52% of online DTC brands experienced sales surges during COVID 19 whereas 80% of big retail stores had to face sales-dip or closure

  • 55% of buyers choose brand websites over multi brand retailers

  • 88% growth in D2C websites’ orders Vs 32% growth in online marketplaces order volume 

  • 50% of customers prefer to visit brand websites as they offer more comprehensive information

  • 58% buyers prefer buying from D2C website because of better prices

Source: Statista, Emarketer