India D2C E-commerce Market Size (2024 - 2029)

The market size of the Direct-to-Consumer (D2C) E-commerce sector in India is expected to experience significant growth, driven by factors such as high consumer spending and increasing e-commerce penetration. The Covid-19 pandemic has accelerated this growth by pushing sellers and shoppers towards digital platforms. The D2C model allows companies to control all aspects of their business, from manufacturing to marketing, and provides a direct communication channel between the brand and the buyer. This model has proven to be effective in building brand loyalty and attracting customers due to its convenience and flexibility. Despite the potential challenges with supply chain visibility, particularly for startups, the D2C model continues to be an efficient strategy for market expansion.

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Market Size of India D2C E-commerce Industry

India D2C E-commerce Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 34.50 %
Market Concentration Medium

Major Players

India D2C E-commerce Market Major Players

*Disclaimer: Major Players sorted in no particular order
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India Direct to Consumer Ecommerce Market Analysis

The India D2C E-commerce market is expected to grow at a CAGR of 34.5% during the forecast period, 2022-2027. The Covid-19 pandemic-induced lockdown and mobility restrictions represented a significant point for D2C e-commerce in India. The pandemic has compelled sellers and new shoppers into digital platforms.

  • Direct-to-consumer (D2C) E-commerce involves companies manufacturing and shipping their products directly to buyers without relying on third-party entities or mediators like traditional retail stores. Direct sales create a medium of communication between the buyer and brand. This enables to build brand loyalty, learn customer preferences, and generate repeat and recommended purchases.
  • Factors like high consumer spending and rising e-commerce penetration are anticipated to drive the D2C market in the study period in India. Additionally, D2C e-commerce offers customers the flexibility and convenience of buying the product of their choice. This has increased the customer attraction towards online shopping.
  • A significant benefit of having a D2C E-commerce strategy is that manufacturers get complete control of all their activities, from packaging to marketing. The Good Glamm Group has 200 million active users, 50 million social media followers, and 4.5 million monthly organic impressions, which shows that the D2C model is efficient in bringing out effective growth.
  • With the help of the D2C model, a startup can directly pitch their product and sell directly to the shoppers. This eliminates the inefficiencies of the traditional supply chain and allows brands to connect to the customers. The major D2C brands in the studied market include mamaearth, a unicorn startup valued at more than USD 1 billion. The startup has successfully sold directly to its customer and built trust over a short time.
  • However, the D2C online platforms, especially the startups, face challenges with the supply chain visibility as the consumers need their orders to be fully transparent, which requires an efficient delivery tracking system for any D2C brand.

India Direct to Consumer Ecommerce Industry Segmentation

The market study includes the evolving customer journey across various online D2C models, key drivers influencing growth, challenges, and major technologies that will drive innovation in the India D2C E-commerce market. The market tracks the revenues accrued by companies selling directly to the customers through their own website or app without the intervention of any other third party.

The India D2C E-commerce market is segmented by End-User Vertical (Apparel and Footwear, Grocery and Gourmet, Personal Care, Home Décor and Household Supplies, Healthcare and Jewellery).

By End-User Vertical
Apparel and Footwear
Grocery and Gourmet
Personal Care
Home Decor and Household Supplies
Healthcare
Jewellery

India D2C E-commerce Market Size Summary

The India Direct-to-Consumer (D2C) E-commerce market is projected to experience significant growth in the forecast period of 2022-2027, driven by factors such as high consumer spending and increasing e-commerce penetration. The Covid-19 pandemic has played a crucial role in this growth, pushing both sellers and shoppers towards digital platforms. D2C e-commerce allows companies to manufacture and ship their products directly to buyers, bypassing traditional retail stores. This model is beneficial for building brand loyalty, understanding customer preferences, and encouraging repeat purchases. It also provides manufacturers with complete control over their operations, from packaging to marketing. The fashion industry holds the largest market share in the India D2C E-commerce market, with a major shift towards adopting and promoting digital transformation. The industry is targeting gaps in the market, particularly among new-age consumers seeking niche and customized products. Additionally, the personal care sector is expected to drive market growth, with increasing consumer adoption of herbal cosmetics and homemade products. The rising demand in this sector has led to strategic acquisitions by firms to meet customer needs. Key players in the India D2C E-commerce market include Mamaearth, BoAt, and Bewakoof Brands Pvt. Ltd., who are adopting growth strategies such as product launches, R&D investment, acquisitions, and partnerships to stay competitive.

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India D2C E-commerce Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Higher Profit Margins by Cutting Down Intermediaries have Encouraged Several Companies to Enter the Market

      2. 1.1.2 Enhanced brand engagement with customers have led to higher retention

    2. 1.2 Market Challenges

      1. 1.2.1 Higher Customer Acquisition Costs

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End-User Vertical

      1. 2.1.1 Apparel and Footwear

      2. 2.1.2 Grocery and Gourmet

      3. 2.1.3 Personal Care

      4. 2.1.4 Home Decor and Household Supplies

      5. 2.1.5 Healthcare

      6. 2.1.6 Jewellery

India D2C E-commerce Market Size FAQs

The India D2C E-commerce Market is projected to register a CAGR of 34.5% during the forecast period (2024-2029)

Mamaearth (Honasa Consumer Private Limited), BoAt lifestyle (Imagine Marketing Services Pvt. Ltd.), Licious (Delightful Gourmet Pvt Ltd.), Melorra and Wakefit Innovations Pvt. Ltd. are the major companies operating in the India D2C E-commerce Market.

India D2C E-commerce Market Report Snapshots

India Direct to Consumer Ecommerce Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)