Rise Of The D2C Women Led Brands In India

Varuna Chand May 31, 2021

It’s no secret that Covid has turned the wheel of the economy upside down. This topsy turvy nature of the current economic climate has thrown traditional retail out of the driver’s seat and put D2C brands in charge. D2C brands have been aggressively growing and have stepped up to give the big players of the market a run for their money. With online shopping becoming the new normal, these brands have taken their wagons on the mainstream route.

With the stigma around gender norms taking a positive turn, the number of women entrepreneurs in India is increasing by an impressive margin. Women Entrepreneurship in India is estimated to generate 150-170 million jobs by 2030. These smart, hardworking women are changing the landscape of startups. These women don't just care about the brand image, they actually care about the environment and are trying to spread awareness in every manner they can. Recently we have seen strong businesswomen coming forward in the support of sustainable development and climate change. All this has really drawn people’s attention towards such brands and that has in turn, helped them build a loyal group of audience who care about the brands initiatives.

Recently, more and more women have opted for a ‘direct-to-consumer’ model of engagement. The brands sell their products directly to the consumers, eliminating the unwanted involvement of a third party. The brand manufactures, markets and sells the product all on its own, without the help of distributors. This not only allows the brands to save resources but also enables them to understand their clientele better and helps them in establishing personal connections and tailor the products to the TGA they cater to.

According to a report by Avendus Capital, the addressable market size of D2C brands in India is estimated to reach 100 Billion USD by the year 2025. One of the major reasons why these brands are experiencing such a boom in the present Indian market is the Changing consumer behaviour. Seeing this evolution, women now have more power over men in the purchasing decisions of the household and make for more than half of the online shoppers today.

Talking about online shoppers, another major reason for this immediate outbreak in the D2C sectors has surfaced due to the Sudden necessity of shopping online. Thanks to the pandemic, people have been forced to stay at home and buy online. The otherwise old-school retail therapy has now moved online providing D2Cs with an additional boot. Major players of the market that adhered to this consumer-centric model have witnessed an increase in their revenue and sales. Some of the notable segments of this sector that witnessed increased revenues in recent years include fashion & cosmetics, home decor, consumer electronics, and FMCG.

Despite the obvious repercussions, the lockdown has given people the time to get a fresh perspective on life. Especially women who have had the time to get creative, have opted to various outlets for expressing the artist in themselves. Social media has eased the process of setting up a new business and inspired many women to get started. Hence, we have witnessed a rise in the number of women-led D2C brands in the last year. Research has shown that women are more likely to shop from brands that are founded, led or supported by other women. This leaves room for immense growth in the sales of such brands.

This D2C wave is changing the entire landscape of fashion and home decor. From 2014 to 2020, fashion startups have estimated to bag almost 876 million USD in funding, with home decor following at 410 million USD in second place. Women are key players in both of these leading sectors as they understand them better than men and can easily identify the needs of their audience. More than half of the online shoppers also consist of women. Taking all these factors into consideration, one can understand the true scope of women led D2C brands in India and how the sales for such brands are going to skyrocket in the coming years.

Women-led fashion & cosmetics and home decor brands like MamaEarth, Clovia and Vpop are giving a tough fight to the giants of the market. These brands have leveraged social media to understand their consumer’s demands and to provide them with a personalized experience.

The D2C model of engagement is truly the future of recognition and success. Statistical data has shown that D2C brands are not just a short-lived trend, but they are here to stay and are becoming the new normal. The Internet has made a wide array of services easily available for the brands to help them analyse their growth and increase their reach at the comfort of their homes. Depending on traditional retail alone will not get you anywhere. Apart from having retail stores in cities, the brands will also need to digitize and create quality content that their audiences can engage with.

(The author is Varuna Chand, Founder of Vpop)