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The D2C market in India is getting immensely popular lately. Consumers are now experimenting with new ways of shopping rather than the traditional ones before. This allows brands to eliminate intermediaries and reach their customers much faster and easier. The rise of e-commerce and new AI-powered technologies has made the growth of D2C businesses skyrocket. Brands are now leveraging the rise of e-commerce, social media, and new technology. And interestingly, the category which can make the best use of this is Fashion.
Fashion in Trend:
Yes, fashion leads the D2C market in India. The D2C fashion industry in India will account for 43% of the $100 Bn market opportunity by 2025, according to a recent report by Inc42 Plus. The apparel and footwear categories are expected to dominate the D2C fashion industry, contributing around 77.1% by 2025.
Fashion Goes Social:
With so many fashion brands being launched every year and all of them competing in the same market, brands have been looking to set themselves apart in the ways they sell. Companies are leveraging social media platforms, including WhatsApp, Facebook, Email, and Instagram, to directly sell products and services to customers.
From AR, VR to live or social commerce, D2C brands are trying to stand out with a range of strategies, and this has evolved with the wider internet ecosystem. Community building is another major facet of fashion e-commerce which is evident in the large Instagram followings for these brands.
CEO of a growing D2C marketplace quotes - “Shopping has always been a social activity to do. When we think of shopping, we think of going out with family and friends and having a good time. So, digitally native brands need to incentivise group shopping to compete with the offline experience”.
Consumer Responsiveness Towards Fashion E-tail:
Today, consumers are more inclined towards online shopping due to lower prices and convenience. Shopping sites and apps also provide huge discounts and free shipping on products. Fashion retail has an edge in easy logistics, as compared to other industries allowing brands more flexibility to sell apparel, accessories and beauty products across thousands of pin codes in India and abroad.
Easy Return/Exchange Policies by today’s D2C marketplaces in India help fashion retailers drive phenomenal customer loyalty and engagement, enhancing brand credibility.
Immense Growth Potential for D2C Fashion Brands:
Research suggests a high growth potential for the D2C fashion market that would expectedly make $43.2 billion in sales by 2025. Due to this, the sector is attracting much favourable investor interest, and the number of Indian D2C fashion brands is rising with each passing year.
The Future of D2C Brands in India:
India is now home to 800+ D2C brands and the number keeps increasing every day. A new-age digital-first customer base, an increasing familiarity with online payments and a lively D2C e-commerce marketplace space has made D2C a lucrative and profitable market.
Expanding their reach through analytical tools and implementing curated strategies based on extensive consumer data, brands are now embracing an omnichannel approach and marketing strategy to keep up with their evolving consumer base.
Curated handwritten notes and personalised messaging is being used by brands to connect with their customers. It gives the consumer a feeling of belongingness to the company and the brand. Many brands also use community building strategies to differentiate themselves from the rest.
Owing to this, there has been a substantial rise in fashion aggregators like EMERGE. They provide end-to-end e-commerce solutions and curated omnichannel marketing solutions for brand growth. Brands have seen as high as 118% order growth with the help of fashion aggregators like EMERGE.
After tasting success in the Tier 1 cities, many online clothing and D2C marketplace are planning to expand their reach in Tier 2 and Tier 3 cities. Consumers in small towns and cities are willing to experiment with products. A leading Beauty D2C brand claims that about 70% of their revenue comes from these small cities. “Three years ago, Tier-I cities used to contribute 70%”. Another online clothing marketplace, says 72% of its sales come from Tier-II, III and IV cities and only 28% from metros.
A bright future lies ahead for Indian D2C fashion businesses, especially when a smart strategy is in place. On the way forward, a robust omnichannel model will further help them add new feathers to their business goals and make them stay ahead of their competitors.
Contact EMERGE for a free business consultation!