The D2C (direct-to-consumer) story has gained a lot of attention over the past few years and shows no signs of slowing down. A recently published report by MMA Global India and Publicis Commerce titled “D2C Advantage – A guide to maximizing his ROI on e-commerce investments” reveals some interesting findings based on conversations with senior executives of large companies. is shown.
By the numbers, India's e-commerce market is expected to grow at a compound annual growth rate of 19% between 2022 and 2030, with D2C's share of India's e-commerce funds at 49% during the same period. It is estimated that , this is according to data from Kantar Internet.
According to the MMA Global and Publicis toolkit, more than 80% of D2C ventures have yet to achieve profitability, primarily due to high customer acquisition costs, operational complexity, and uncertain return on investment. has been done.
A statement released by both organizations said that while many traditional companies are moving into D2C, standalone D2C revenue remains modest, with “5% of total e-commerce revenue accounting for 50% of respondents. It accounts for less than 30% of the total.
For companies, the D2C route helps overcome the challenge of competing for shelf space and also reduces the cost of product launches. Naturally, the growth of e-commerce business is a positive sign. Kantar predicts that amount is currently $100 billion and will increase fourfold to $400 billion by 2030.
The proportion of spending between categories will also vary in a larger pie. For example, fashion and apparel will increase from 20% to 28%, and food and FMCG will increase from 11% to 17%. Smartphones will drop from 33% to 18%, and electronics and home appliances will also drop from 20% to 17%.
D2C is still in its infancy, and while many traditional companies are getting into D2C, standalone D2C revenue remains modest at less than 5% of overall e-commerce revenue for 50% of respondents. This statement clearly explains that his successful D2C business gets things right in areas such as clarity of proposition, enriching and leveraging data, and developing consumer insights through analytics and reporting. I am.
“The path to profitability for a D2C business is very difficult when viewed in isolation, but the true value of a D2C investment is unlocked when insights from the business are tied to the overall e-commerce business. However, if done correctly, D2C businesses can consistently achieve operating margins of 8% or more,” the statement said.
Anupriya Acharya, CEO South Asia, Publicis Groupe It fosters relationships.” She argues that the overall e-commerce landscape is rapidly evolving, and that “D2C channels are enabling businesses to better control how they sell to consumers and increase consumer spending through valuable data and insights.” It's a treasure trove for understanding people's interests and preferences.''
Moneka Khurana, Country Head and Director, MMA Global India, said building a strong D2C platform will enable insights and learning for decision-making in the larger e-commerce market. “D2C is here to stay for the long term, driving opportunities to drive hyper-growth, brand building, and content-driven commerce.”
