D2C market to become a $60 billion industry by FY27: Shiprocket-CII-Praxis report

Direct to Consumer (or D2C) brands are now estimated to be a $60 billion industry by FY27, registering a Compound Annual Growth Rate (CAGR) of about 40 per cent, the latest report jointly prepared by logistics firm Shiprocket with CII and Praxis Global Alliance has revealed.

This trend has been reaffirmed by the fact that many D2C brands across the nation have crossed the Rs 100-crore benchmark in revenue. On top of that, this revenue benchmark was only achieved in 3-5 years since launching operations.

As per the report, D2C is at the moment a $12 billion market and is witnessing remarkable and rapid growth. The report states that several D2C brands in India have crossed Rs 100 crore revenue in 3-5 years after the launch.

Saahil Goel, co-Founder, and CEO of Shiprocket said, “The rise of online-first shopping behavior and conscious consumerism fueled the era of direct-to-consumer (D2C) brands. Today, brands are not limited to only marketing their products through online marketplaces or offline channels, rather many brands are developing their own ecommerce stores or apps with the aim of capturing orders and delivering them with the help of ecommerce enablers straight to the customers. With technological barriers taking a side-step and building blocks of direct selling strengthening, this trend is furthering to newer heights."

Mohit Mittal, Partner of Praxis Global Alliance, said, “The Indian e-commerce market is growing rapidly (projected CAGR of 25 per cent from FY22 to FY27). We've seen that almost all pin codes in India are using e-commerce. Many of these transactions and orders come from tier two cities and smaller towns. By FY30, India will also have 1.3B+ smartphone users and 500M+ online shoppers. The growing e-commerce sector positively influences the growth of D2C brands in India. With more people shopping online and more money being spent by consumers, the market is likely to increase over the next five years."
 

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