Direct-To-Consumer

Vidhya Krishnaswamy, Vice President and Head of CPRD, India Business Unit, Capgemini India draws light on how Direct-To-Consumer brands are here to stay.

Traditionally brands had been following a business model that allowed them to sell to the end consumer through distributors and retailers. The pandemic has enabled a paradigm shift to the online world and brands want to capitalize the trend. A new business model is emerging where brands can sell to the consumer directly while avoiding any middleman or distributors and retailers. With widespread internet penetration, this only catapulted the growth further. For the brand loyal consumers, it reduced the hassle of researching, browsing, and choosing from too many options creating an easy buying process.

In India, Direct-to-consumer (D2C) brands could be looking at a $100 billion addressable consumer opportunity by 2025, according to estimates by Avendus Capital. Online spending in India is expected to grow at a CAGR of 35%+ from $39 billion today to $200 billion over the next 5 years, also supported by internet and payment infrastructure developments supported by Government policies.

With more brands channelling their attention towards meeting their consumer’s demands directly, D2C brands are carving a niche for themselves against competition and retailers.

Download this insightful take to know more on how direct-to-consumer brands are connecting with their end consumers.