Scaled and created online Digital Native Brands (DNBs) have been trending for the past few years. Brands such as Mamaearth, Boat, and Xiaomi are well-adapted to the online ecosystem. To become household names these brands have also ridden the explosive growth in the e-commerce sector. Share and power of digital brands increase as online sales of that brands increases across categories.
How are traditional brands are leveraging the opportunity that comes their way and how they meeting these challenges? To answer this question, we can examine things like, what are the strategies that traditional brands can adopt to stay relevant and competitive and how the online retail sector is expected to grow over the next few years.
For brands digital leadership becoming critical-
Online sales will account for over 25 percent of sales across various categories, except for groceries and food. We can expect this growth by 2026. This means that the share of the online market will have a significant impact on the whole market share in categories such as living and home, fashion, appliances, electronics, and mobiles. In e-commerce digital native brands have continued to increase their share, which leads to pressure on traditional brands in the digital ecosystem.
In consumer electronics, DNBs are market leaders-
Consumer electronics are currently sold through the digital market and it is about 50 percent of the whole category. In this category digital native brands have a very high share of sales, they are not only leading the whole market but also are not only digital leaders. For the smart TV brand category, Xiaomi is at the top, in the country. While in the wearable categories of products digital native brands are in the top three brands. Digital brands are gaining a higher share of the market as the shares of digital sales for a category growing. These categories such as FMCG and fashion will see a similar trend as more customers shift to the digital shopping experience.
In the overall retail market, the online retail market is to witness 3X growth-
During the pandemic, the online retail market has continued to grow in India. The continued growth of online sellers and shoppers shows the online retail market is set to grow by 27 percent over the next few years.
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