D2C brands are expected to be $60 billion industry by FY27, says report

D2C brands are expected to be $60 billion industry by FY27, says report

The latest report prepared by logistics firm Shiprocket and Praxis Global Alliance shows that Direct to Consumer or D 2 C brands are estimated to be a $60 billion industry by FY 27 and have a Compound Annual Growth Rate CAGR of around 40 per cent.

This trend has been reaffirmed by the fact that many D 2 C brands across the country have crossed the Rs 100 crore benchmark in revenue. Since launching operations, this revenue benchmark was only achieved in 3 -- 5 years.

D 2 C is a $12 billion market and is witnessing remarkable and rapid growth, according to the report. In 3 years after the launch, several D 2 C brands in India have crossed over 100 crore revenue.

Saahil Goel, co-founder and CEO of Shiprocket said the rise of online-first shopping behavior and conscious consumerism fueled the era of direct-to- consumer D 2 C brands. Brands are not limited to only marketing their products through online marketplaces or offline channels, but are developing their own ecommerce stores or apps with the aim of capturing orders and delivering them with the help of ecommerce enablers straight to the customers. This trend is going to new heights with technological barriers taking a side-step and building blocks of direct selling strengthening. Mohit Mittal, Partner of Praxis Global Alliance, said the Indian e-commerce market is growing rapidly from FY 22 to FY 27. We've seen that almost all pin codes in India are using e-commerce. Many of the transactions and orders come from tier two cities and smaller towns. India will have 1.3 billion smartphone users and 500 M online shoppers by the end of the year 30. The growth of D 2 C brands in India is positively influenced by the growing e-commerce sector.