The worldwide outbreak of the pandemic has affected the traditional retail market with limitations around the tactile aspects of the model. Covid-19 has changed the way consumers shop and has made the brands realize the importance of the digital-first, direct-to-consumer model. Though several segments in the market have already embraced this transformation, the fashion industry has witnessed the biggest change. The D2C-led market is estimated at ~ $ 1.9 billion contributing close to 1% of the Indian FMCG, home market & consumer accessories market, involving 600 D2C-led brands/businesses. More importantly, the D2C market size is estimated to grow to $ 22 billion by FY 25 and will contribute more than 10% to the total FMCG, home, and consumer accessories market.
Why- As the Indian fashion market is witnessing an uptick in consumption, the brands have a bigger opportunity to reach consumers through the D2C model. The D2C model also brings order to the otherwise unorganized fashion sector hence increasing the revenues for brands.