- Indian D2C market value is projected to surpass the mark of $60 billion by 2027
- Around 65% of the customers placing orders with women-led D2C brands are from non-metros, thereby replicating the internet commerce trend unfolding in India
- Top categories included beauty and wellness, apparel, artificial jewellery, supplements and personal care
Women-led Direct-to-Customer (D2C) brands are increasingly witnessing a robust growth in business, posting a healthy 54x growth in transactions online via Simpl’s Checkout Solutions in 2023 as compared to 2022, according to Simpl Checkout Scan. This comes on the back of a growing number of customers accessing their niche requirements from D2C brands online over the last few years to fulfil their evolving requirements in an affordable manner.
Among the top categories posting growth for women-led D2C brands are beauty and wellness, apparel, artificial jewellery, supplements and personal care with brands such as Earth Rhythm, Inweave, Trubrowns, Raw Beauty Wellness, Dermabay, Estele, Fitspire, Protouch Skin leading the demand. Although Gen Z and millennials are leading the demand for D2C products, about 65% of the customers placing orders with these women-led D2C brands are from non-metros, thereby replicating the internet commerce trend unfolding in India with smaller cities increasingly going online to meet their requirements. Women-led D2C merchants also witnessed 54x in customer growth. Furthermore, there has been a 1.4x increase in average order value (AOV) in 2023 as compared to 2022.
Among the reasons driving demand for D2C brands, particularly in the beauty, skincare, hygiene and personal care segment, are the change in user behaviour where they are looking for sustainable solutions over quick fixes, driving the growth of the overall industry. According to KPMG, the Indian D2C market value is projected to surpass the mark of $60 billion by 2027 from approximately $12 billion in 2022, by growing at a CAGR of 40 per cent.
Simpl, India’s foremost Checkout Network, is the preferred checkout partner for hundreds of D2C brands, including over two dozen women-led D2C brands, having an annual order checkout volume of nearly Rs 100 crore via Simpl’s network in 2023. These D2C brands have consistently posted an increase in conversions and prepaid share along with a reduction in returns, some of the major pain points in the industry, in partnership with Simpl.
Commenting on this development, Khanaz K.A., CXO – D2C Business at Simpl, said, “The Indian retail industry is undergoing a transformational change with the rise of D2C brands, offering niche products to fulfil customers’ evolving requirements in a trustworthy and affordable manner. Here, women-led brands have grown exponentially with Simpl’s Checkout solutions in 2023 by posting a 54x growth in transactions through building trust and convenience with customers, reducing losses while replicating the marketplace experience for a seamless e-commerce experience. We have developed an array of solutions including 1-Tap Checkout, Simpl Checkout, Checkout Suite and Early Settlement among others to power their business. This is leading to an increasing number of D2C brands across the country, including women-led, partnering with Simpl to improve business and enhance customer experience ”.
The accelerated growth in business is also enabling these women-led D2C founders to increasingly invest in creating employment opportunities, establishing manufacturing hubs, and investing in warehousing infrastructure across key hubs.
Shveta Narula, Founder, Chief Executive Officer at Inweave said, “We are witnessing a robust growth in demand for our products and our partnership with Simpl has been simplifying customer journeys across the board while helping us reduce business costs. Over the last 10 months, we have witnessed a 12% increase in conversions led by convenience and consumer intelligence, enabling us to invest in enhancing our capacities. We are doubling our warehousing space and increasing our manufacturing and workforce count by 50% to cater to the increasing demand from customers in across the country.”
