Mumbai, 9th May 2024: Amid all the euphoria about Direct-to-Consumer (D2C) brands with online presence, brands are increasingly making their offline presence with omnichannel presence, according to experts at the Phygital Retail Convention 2024 here on Wednesday.
“Seven years ago, there were several brands with internet only or internet first, but to become large they need to go omnichannel,” said Mr. Mandar Dandekar, Partner, Sorin Investments on day one of the two-day Phygital Retail Convention.
India’s D2C market is estimated to reach a size of USD 100 billion by 2025 after having grown exponentially in the last few years driven by 200 million odd digital shoppers in the country. D2C brands are largely established by Indian start-ups and large MNCs or Indian companies that have not ventured into this space, pointed out Mr. Rama Bijapurkar, thought leader on market strategy and consumer behavior at the panel discussion.
Several malls are opening up to get D2C brands across their outlets as established brands in such segments are today going offline after having tasted success online. “It’s a win-win situation for both – D2C brands and the malls. And for D2C brands in particular, it allows testing market on how customers respond, so that they make changes before they commit to the large expansion plans,” shares Mr. Yogeshwar Sharma, Chief of Leasing & BD, DLF Retail.
Over 100-odd D2C brands have established themselves in India, according to industry sources. As D2C brands continue to evolve and expand their footprint, the integration of online and offline channels emerges as a strategic imperative, enabling enhanced consumer engagement and market penetration.
According to data sourced from Kantar Internet, the Indian e-commerce market is forecasted to experience a compounded annual growth rate of 19% between 2022 and 2030. During this period, the Direct-to-Consumer (D2C) sector is expected to account for 49% of e-commerce funding in India.