Editorial Team

Fueled by a surge of smartphone sales, COVID-19 enforced lockdowns, an increase in the overall screen time and the acceleration of internet adoption even in the rural households of In India, there has been a boom of eCommerce adoption that shows no signs of stopping soon. After consumers got a hang of marketplaces like Amazon, Flipkart, Myntra, Snapdeal etc., it became obvious to brands that the next big growth is in building a D2C business. Due to the lockdown, life came to a standstill and this was the time when D2C became a go-to growth enabler for eRetail leaders across industry verticals. In just the last few years, India has launched over 600 D2C brands, bringing the count to a total of 800 D2C brands. Currently, the sector is valued at approximately $44.6 billion in 2021 with a projection to touch $100 billion by 2025.

To understand the impact of D2C on modern shoppers and explore what they want, GreenHonchos – A leading full-stack D2C enabler surveyed 1,050 diverse Indian shoppers, D2C enablers and brand owners.

Here are the Key Findings from their survey:

1. 65% of shoppers went online to buy a product they had bought in-store previously.

2. More than 53% of Indian consumers have bought from a brand or store they’ve never shopped before.

3. 62% of customers’ orders came from tier 2 & 3 markets.

4. Tier 2 & 3 consumers are experimental & avid online shoppers.

5. In the personal care & beauty segment, the AOVs are higher in tier-2 cities compared to tier-1 cities.

6. 71% of consumers research online before shopping at the store.

7. #1 influence in purchase decisions is getting all their shopping needs met at a single Place.

“Owing to their pandemic-influenced change in shopping habits, serious buyers with a higher spending capability are entering the online shopping scene. Users are not primary deal hunters but driven by experience and convenience” says Navin Joshua, Founder & Director, GreenHonchos.

Consumers are digitally-driven and know what they want. PDPs on D2C websites, surety of brand guarantee, usage of official channels for delivery and a set funnel for consumers are a few things that are giving an edge to online shopping. D2C businesses have complete control over their points of sale, prices, marketing efforts and grievance redressal, thus, the brand and the consumer can have a real-time conversation. Through harnessing data, brands can run personalized and segmented marketing campaigns which utilize local dialects and vernacular languages based on the consumer demographics.

The survey states:

● 76% of consumers respond better to personalized marketing messages as they have a better relatability factor.

● 77% of people are inclined to buy from brands that focus on personalized experiences.

As the internet becomes more personal, brands must give attention to data privacy and social responsibility. Consumers prefer brands that have values like social consciousness, size inclusivity, ethical sourcing and sustainability. The emergence of Text Commerce is a step towards convenience but brands must ask themselves what social channels are appropriate as means of communication.

The GH survey shows:

● 84% of consumers prefer brands that are committed to protecting their data privacy.

● Around 83% of consumers in India prefer buying from socially responsible brands.

● 71% of consumers have changed their purchase behavior to reduce their carbon footprint.

To address the changes, brands are investing in emerging concepts like Phygital-Omnichannel enablement, Hyperlocal deliveries, BOPIS and Quick commerce.

The GH survey shows:

● 74% of shoppers are omnichannel buyers owing to the superior phygital shopping experience.

● 54% of consumers use BOPIS or curbside pick up more often than before the Pandemic.

The rise of D2C has brought about radical changes in the buying experience of Indian shoppers. Charting this buying behavior, gaining insights and harnessing data to optimise the customer experience is the name of the game in 2022. To cross the frightful D2C Chasm, brands must step up to be as agile as the customer’s shopping patterns.

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