By Kritika Arora
As the direct-to-consumer (D2C) channel gains prominence, the fashion and accessories segment has emerged as the frontrunner in embracing it. The segment saw an increasing number of D2C brands over the last two years, a joint report by Unicommerce and Wazir Advisors on India Retail and E-Commerce Trends showed.
During FY22, the fashion and accessories segment saw a year-on-year growth of 89.5% on brand websites compared with 52.2% growth the year before.Even major offline retail players are now focusing on selling through brand websites, the report said.Following the fashion and accessories segment is the health & pharmaceutical segment that reported order volume growth of 84.8% on brand websites, alongside its muted growth of 9.2% on marketplaces. The segment is largely dominated by consumers who order nutraceutical and health supplements. This leads to a strong growth of brand websites as consumers prefer to order directly from the brand, the study said. Another factor that contributes to its growth is the emergence of many new nutraceutical players over the last year, it added.The FMCG & agriculture segment witnessed a y-o-y growth of 67.7% on brand websites in FY22, while marketplaces grew by 50.6%.The report further said brands across segments are building a strong online presence with the focus on selling directly to consumers and companies have realised it is important to invest in strong brand website operations to develop a connection with consumers.
Brand websites showed a growth of 80.4% y-o-y in FY22 while marketplaces reported a 59.6% growth during the same period, according to the study.
However, marketplaces still drove majority of the e-commerce order volumes as they enjoy consumer trust with faster deliveries. They will continue to hold the majority order volume share in the foreseeable future, the study said.
In marketplaces, the beauty & personal care segment saw faster growth than brand websites due to processes and technology that enable faster delivery.
Marketplaces continue to dominate the footwear segment as well as it reported a 72.3% order volume growth compared with 42% growth on brand websites. Shoppers like to search for multiple brands before making a buying decision, which explains the robust marketplace growth, the study said.