D2C Brands Flag Bearers of India's Growing Digital Economy

Bypassing the intermediaries and traditional distribution channels, and leveraging digital platforms and cutting-edge technologies to service consumers directly, D2C brands have emerged as a disruptive force on the Indian retail landscape

India, currently standing as world's fifth-largest economy, is poised to become third-largest economy with a GDP of USD 5 trillion in next three years and touch USD 7 trillion by 2030. The world's most populated nation is on the path of fastest economic growth. The country with diverse consumption markets and consumer segments has a robust retail market too, which makes it the world's fifth-largest global destination in the retail space. Figuratively, India's total retail market is valued at ₹84,874 billion (USD 1.011 trillion) in FY24 which is estimated to reach ₹152,094 billion (USD 1.8 trillion) by FY30, growing at a CAGR of 10.2%. In this, the modern retail is valued at ₹13,039 (USD 156) billion, which is expected to reach a market size of ₹27,382 (USD 326) billion by FY30. This puts the modern retail share at 15.4% of the total retail market.

With the current growth rate, this market share will elevate to 18% over the projected period. Today, country's e-commerce constitutes a significant part of its modern retail.

Booming E-commerce

India the world's seventh-largest country by area, has an e-commerce market size of USD 70 billion. Growing at a CAGR of 20-21%, this market is expected to achieve a size of USD 325 billion by 2030. Led by 820 million (2023) active internet users, 442 million coming from rural India, the internet penetration in the country is growing at 8% per annum.

As of 2023, India has 659 million smartphone users a number that is projected to touch the 1-billion mark by 2026. The smartphone market in the country, in value terms, will continue to grow at a CAGR of 7.09% up to 2029. The smartphones aided by world's third-cheapest internet data are a major catalyst of e-commerce growth in India.