India's D2C Brand Sweep

Brand-starved Bharat is fast embracing digital-first 'direct to consumer' brands. As competition heats up, it's financial heft and offerings that will differentiate. Who's ready?

- Asmita Dey

NIKITA DAS, a 27-year-old Pune-based IT professional, likes experimenting with local direct-to-consumer (D2C) brands. At present, she is using skin and hair care products by Plum. Das says she likes the way the company packages products; they are aesthetic, easy to carry, and available in small packs. Most importantly, they are clean, vegan, and cruelty-free, she says. “Unlike many items by traditional brands, they are pure," says Das.

D2C, or digital-first brands, which leverage internet to sell directly, without the traditional distribution network of wholesalers, stockists, and retailers, are having a dream run in India, thanks to its vast 700 million internet users and online shopper base of 140 million, third-largest after U.S. and China. India is now home to about 600 D2C brands with estimated combined revenue of over ₹14,000 crores (around $2 billion), says Ankur Bisen, senior partner at Technopak Advisors. The Indian D2C market is estimated at $1.9 billion, contributing close to 1% of the domestic FMCG, home, and consumer accessories market, according to a white paper published by Technopak. It is expected to grow to $22 billion by FY25, more than 10% of the total market.

D2C brands are spread across segments ranging from beauty and electronics to pet care, fresh meat, and seafood. While unicorns like Good Glamm Group, Licious, and Mamaearth are well-established, the market also has a host of mid-sized players such as Wiggles, The Sleep Company, and smaller brands such as Tiggle, which sells hot chocolate.