The Indian D2C market value is worth approximately USD12 billion in 2022. The same is projected to surpass the mark of USD60 billion by 2027, by growing at a CAGR of 40 per cent. Consumers have multiple touchpoints across channels, providing them with numerous choices, thereby making the decision-making process more complex. Furthermore, the Millennial group, forming 70% of the total sample size, forms the largest consumer base in India and are likely to share their personal data in order to have personalised engagement.
Consumers have shifted their preferences to having more customisation in the goods and services being offered. Thus, this no longer renders an approach to building general marketing strategies fruitful. Further, rising support from the Indian government in terms of funding, liberalisation, fueling digital e-commerce and related policies have served as push for the augmentation of the market.
The pandemic has surged the amalgamation of offline and online shopping. Brands are now integrating with online sales channels to ensure a seamless shopping experience for customers. Further, many D2C brands today have started adopting tech-enabled solutions to streamline processes and efficiencies around supply chain and warehouse management. With the help of social media marketing, fashion and personal care brands have been enabled to market their products more effectively, be it through their own portal or with the help of influencer marketing. Voice based shopping as well as directly through social messaging services and chatbots too are gaining traction.
Hygiene and Personal Care, Beauty and Skin Care, and Healthy Snacks and Beverages are the top categories in the D2C market.
Beauty and Skin Care consumers prioritise eliminating root causes of skin issues over quick fixes. This can be seen with a higher share of following on topics like acne and acne removal. Moreover, users actively look out for products and treatments for sustainable hair growth as well as occasional styling. Additionally, In the Beauty and Skin Care category, face makeup is the most popular, accounting for 75% of the total content views, followed by Nail and Eye topics. Users show the most interest in topics related to eyebrows, facial masks, and foundation products. In the Nail category, users show interest in Nail Care, suggesting they have progressed beyond the product exploration stage. Quora users are more likely to purchase personal care products online, with hairstyling, grooming, and skincare products topping the list. Users are more likely to purchase beauty products such as cosmetics, hair colouring products, and fragrances than essentials like shampoos and conditioner.
Hygiene and Personal Care market moves simultaneously with the growth in the level of awareness and health consciousness of the consumers. India owns a 22 per cent share in the Hygiene and Personal care market of the APAC region and has witnessed tremendous growth in its export by registering a 26 per cent increase in a span of four years previously.
The Healthy Snacks and Beverages market has been synonymous with being a convenient source of nutrition for consumers due to the rising need for affordability and accessibility. Furthermore, Green tea has been in high demand lately as more and more Quora users are recommending and following it. Cereals and Oatmeal are considered to be close substitutes for having full-fledged meals. Cereals is a popular topic on Quora under the segment and Oatmeal, being an English- style breakfast, has also gained traction amongst Quora users lately as the market is in a developing stage.
Thus the growth in the D2C market in India is expected to continue, fueled by changing consumer preferences, increased funding, government support, and technological advancements
