Direct-to-consumer brands to draw in next wave of shoppers in India: Report

New Delhi: Direct-to-consumer (D2C) brands could be looking at a $100 billion addressable consumer opportunity in India by 2025, according to estimates by Avendus Capital, the investment banking arm of financial services firm Avendus Group, released on Wednesday.

D2C brands could get fillip as covid-related restrictions on stores prompt more Indian shoppers to go online, discover brands and open up channels of reach and distribution, Avendus said. The company defines such brands as those that draw a majority of their revenue from or customer acquisition from direct to consumer online channels or those that started with an online-first distribution before going omni-channel.

Since 2016, over 600 such brands have entered the market, racking up over $1.6 billion in funding. Some of these brands include Lenskart, Licious, Zivame, Boat, Wow Skin Sciences, Healthkart, Mamaearth, MyGlamm, Sugar, Country Delight, Atomberg, among others. Avendus expects consolidation activity in the sector in the next three-to-four years, either as roll-ups or existing large consumer goods companies buying D2C brands.