I came across a LinkedIn post by Nikhil Kamath where with the help of a beautiful #carousel he explained how the Direct-to-Consumer #D2C market has been booming and would go on to increase from $12 billion in 2022 to an expected $60 billion in 2027 (Remarkable #CAGR of 40% approx.).
(Nikhil's post: https://shorturl.at/J4DD5)
That sounded too overwhelming to me till the time I came across a news article which mentioned that the D2C market in India will touch somewhere $100 billion by 2025!! (DataLabs By Inc42+)
My curiosity in the #sector increased, prompting me to dive deeper into the wealth of information available!!
1. As on 2021, India had roughly 700 million internet users (to reach 970 million by 2025) and 240 million online shoppers (2023). We are the third-largest #digitalshopping base after the US and China.
2. D2C #startups in India attracted over $2 billion in #funding between 2014 and 2021. In 2021 alone, a total of $2.14 billion was invested in D2C brands in India.
3. As per reports, in 2024, India was home to 800 or more direct-to-#consumerbrands in India.
4. The Indian #fashion industry is booming, projected to reach $43.2 billion by 2025. This massive growth potential is attracting a wave of fashion #startups, making them the leading force in the D2C #market.
5. boAt Lifestyle, a consumer #electronics brand, became the quickest D2C brand to reach ₹100 crore in just 02 years. BEWAKOOF®, a D2C fashion brand founded in 2012, plans to reach ₹2,000 crore in sales by 2025.
6. #Onlineretail sales in India reached $84 billion in 2021 and are projected to grow to $188 billion by 2025.
7. There are some problems too. In 2021, around 30% of D2C brands reported #logistics and #supplychain issues as major challenges. The average (Customer Acquisition Cost) #CAC for D2C brands in India increased by 20% between 2019 and 2021 due to rising #competition.
8. By 2025, it is projected that 40% of D2C brands will integrate #AI and #machinelearning to enhance personalization and operational efficiency.
9. By 2025, we may witness a 25% increase in market penetration of D2C brands in Tier 2 and Tier 3.
Overall, the future of D2C brands in India appears bright, with significant #growth expected and a focus on #innovation and catering to the evolving needs of Indian consumers.
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