India's D2C to Become a $60 Billion Industry by FY27: Report

According to the Shiprocket-CII-Praxis report report, D2C is a $12 billion market today and several D2C brands in India have crossed INR 100Cr revenue in 3-5 years after the launch

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D2C (Direct to Customer) brands are estimated to be $60 billion industry by FY27, registering a CAGR of about 40 per cent, says a recent report by logistics startup Shiprocket, CII (Confederation of Indian Industries) and Praxis Global Alliance on the D2C market in India.

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The prominent D2C players in the country include Mamaearth, SUGAR Cosmetics, boAt, Wakefit, Bombay Shaving Company, WOW Skin Sciene, Pepperfry and many others.

According to the report, D2C is a $12 billion market today and several D2C brands in India have crossed INR 100Cr revenue in 3-5 years after the launch. To estimate the size of the D2C market in India, the report considered seven categories: personal care, clothing and footwear, groceries and refined foods, jewelry, electronics, health care, home furnishings, and garden.

Speaking on the report launch, Saahil Goel, co-founder, and CEO of Shiprocket said, "The rise of online-first shopping behavior and conscious consumerism fueled the era of 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 e-commerce stores or apps with the aim of capturing orders and delivering them with the help of ecommerce enablers straight to the customers."

He further added that the report's aim was to provide a comprehensive deep dive of the D2C sector in India and its tremendous potential in the coming years. "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 more than 1.3 billion smartphone users and more than 500 million 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. To reduce their reliance on the marketplaces, even traditional brands are increasingly developing their D2C channels such as website, app and social media handles to reach out and sell to their customers," said Mohit Mittal, Partner of Praxis Global Alliance.