D2C Industry To Surpass $60 Billion By 2027: Report
Women-led Direct-to-Customer (D2C) brands are witnessing robust growth with transactions online via Simpl's Checkout Solutions experiencing a substantial 54x increase in 2023 compared to 2022.
The surge in transactions can be attributed to the changing consumer behaviour where an increasing number of customers, particularly non-metros are turning to D2C brands to fulfill their evolving requirements affordably. The trend is particularly prominent among Gen Z and millennials who are driving the demand for products from women-led D2C brands.
The key categories experiencing growth include beauty and wellness, apparel, artificial jewellery, supplements and personal care. Leading brands such as Earth Rhythm, Inweave, Trubrowns, Raw Beauty Wellness, Dermabay, Estele, Fitspire and Protouch Skin are at the forefront of this demand.
Commenting on this development, Khanaz K.A., CXO - D2C Business at Simpl, said, “The Indian retail industry is undergoing a transformational change with the rise of D2C brands, offering niche products to fulfil customers’ evolving requirements in a trustworthy and affordable manner. Here, women-led brands have grown exponentially with Simpl’s Checkout solutions in 2023 by posting a 54x growth in transactions through building trust and convenience with customers, reducing losses while replicating the marketplace experience for a seamless e-commerce experience. We have developed an array of solutions including 1-Tap Checkout, Simpl Checkout, Checkout Suite and Early Settlement among others to power their business. This is leading to an increasing number of D2C brands across the country, including women-led, partnering with Simpl to improve business and enhance customer experience ”.
Reasons Driving Demand:
Shveta Narula, Founder, Chief Executive Officer at Inweave said, “We are witnessing a robust growth in demand for our products and our partnership with Simpl has been simplifying customer journeys across the board while helping us reduce business costs. Over the last 10 months, we have witnessed a 12 per cent increase in conversions led by convenience and consumer intelligence, enabling us to invest in enhancing our capacities. We are doubling our warehousing space and increasing our manufacturing and workforce count by 50 per cent to cater to the increasing demand from customers across the country.”
Approximately 65 per cent of customers placing orders with women-led D2C brands are from non-metros, reflecting the expanding influence of internet commerce in smaller cities. Furthermore, there has been a 1.4x increase in average order value (AOV) in 2023 as compared to 2022.
