The last few years has witnessed a rise of e-commerce and in that, especially the direct-to consumer (D2C) brands, popping up in the Indian business ecosystem, across segments. While traditionally, retail businesses are run by distributors, however with the advent of internet ad concept like D2C, it has become easier for companies to reach out to their consumers without the middlemen. India, right now, is having its D2C moment with more than 700 brands selling directly to their consumer base. According to 2021 forecast by Statista, by 2025, the fashion and accessories D2C market in India is expected to be worth US $ 43.2 billion. There also has been a steady rise in D2C funding in the year 2021 as the funding amount grew by 251 per cent, with fashion being the most attractive category in the D2C segment. The popularity is so much that Mensa Brands, a start-up that acquires direct-to-consumer brands and helps them scale within the home market and overseas, has become a unicorn just six months after launching its business.
While brands/companies have been operating with the D2C business model since quite many years, the pandemic has laid the foundation for the success of D2C. “In the current climate, specially in light of the pandemic, D2C has become a means for survival for many brands across industries. While we have always been a D2C brand, digital avenues for us became a key driver of business. We have revamped our own retail channel, xyxxcrew.com, strengthened our delivery model as well as streamlined our response time for a seamless shopping experience, no matter where our customers are,” says Yogesh Kabra, Founder, XYXX.
Leveraging D2C for growth
E-commerce, the rise of social media and rapidly changing consumer behaviour, etc., have made it easier and trendier for people to buy things and services directly from the brand itself. Also, new technology has made it easier for companies to make their websites and apps more user-friendly. Anurag Saboo, Co-founder, DaMENSCH, maintains, “In pre-Covid times, when the men’s apparel industry was seeing an average of 12-13 per cent CAGR, we have grown 2-3X during the last one year, which is to say that men have realised that they need functional fashion that works for their comfort, both indoor and outdoor. The digital native online consumer ignited this revolution seeking distinct and innovative products, fabrics and sought-out brands like ours which challenged the norm. We could market our products and its functionality through our connect with the consumers. We have been in constant touch with our customer base and understand their needs and demands.”
The fact that India is expected to add 200 million online shoppers in the next four years, coupled with increasing VC funding, consolidations, IPOs and market reactions, all add to the growing D2C ecosystem in India.
D2C also gives the manufcaturing companies the due credit. “The D2C business model allows manufacturers to directly build a relationship with their customers through the data available on buying patterns, making it a more economical business model. The conventional business models leave little room for manufacturers to have any control over the sale, gathering data, or building a relationship with consumers after the product has been entrusted to a retailer. Using direct-to-consumer (D2C), manufacturers can introduce new products on a smaller scale, test for certain demographic groups, and collect feedback. Our business model in manufacturing is based on understanding what our customers want, making what sells, and improving where possible,” asserts Veena Ashiya, Founder and CEO, Monrow.
Pre-requisites of being a successful D2C brand
D2C is definitely not restricted to new-age consumer business but start-ups sure are excelling this segment with their sheer will to connect with the consumer segment and mainstream businesses are not shying away from acquiring these online-first brands in order to stay relevant in today’s uncertain market. While the growing interest in D2C is evident, what really are the pre-requisites for creating a successful D2C brand? Yogesh Kabra says, “As a D2C brand, we have followed a robust omnichannel strategy from Day-1, ensuring speed, flexibility, ease of purchase, a quick feedback channel as well as multiple purchase avenues. The key to a successful D2C brand lies in establishing a powerful connection with your customers through a unique brand story and identity, a clear value proposition, innovative marketing and brand voice, thorough understanding of your consumers through rigorous learning and insight, and a seamless feedback channel backed by technology.”
Tech investments and an understanding of underlying economics are much needed before going down the D2C route. Also, to benefit from the consumer data, there is a need for back-end infrastructure that breaks down data and harmonises across online and offline.
Furthermore, D2C is not a ‘one size fits all’ model. There needs to be a differentiating factor in the ever-growing pool of brands and start-ups in the D2C segment – be it the technology incorporated, product differentiation, customer service, payment options, packaging, etc. “What differentiates us is the proprietary technology in our innerwear and the industry-first 500 day warranty that we offer on our Constant collection. Our product range of innerwear includes Deo-Soft – India’s first odour cancelling underwear, Neo-Skin – thermoregulating vests made from a curated composition of sustainable bamboo fibres, among other products catering to the comfort of the modern man,” elaborates Anurag Saboo.
Bharat Tex Special Report 2026 
