As India's ecommerce landscape rapidly evolves, the upcoming festive season is set to be a pivotal moment for online retailers. With the economy on an upswing and the digital-savvy Generation Z leading the charge, the festive period promises to break records. Direct-to-consumer brands are expected to capitalise on this trend, driving unprecedented growth in online sales and consumer engagement.
GoKwik, an ecommerce facilitator released a report that shows a 40 per cent increase in sales driven by the country's rising economy, the rise of Generation Z customers and the quick expansion of direct-to-consumer firms (D2C).
The company's network, which includes over 4,000 direct-to-consumer firms, has already demonstrated strong early holiday buying activity. Data showed a 38 per cent increase in Gross Merchandise Value (GMV) and a 49 per cent increase in orders in July compared to June, indicating an early start to the holiday season and a move to online shopping.
Last year, brands in the GoKwik network experienced a 34 per cent increase in GMV and a 38 per cent increase in orders. This year, brands are projected to thrive even while large marketplaces conduct sales concurrently. GoKwik's network proved resiliency, with a 52 per cent growth in big marketplace sales last year, highlighting the growing relevance of direct-to-consumer businesses.
The company also predicted additional improvement in RTO rates, which fell 7 per cent last year. Brands are getting better at recognising customer intent and improving communication to reduce returns. Last year, several regions, such as Manipur, Bihar and Arunachal Pradesh, had the highest RTO rates, with some pin codes witnessing up to 72 per cent returns before delivery.
Despite increased online shopping convenience, cash on delivery (COD) remains popular for high-value purchases. COD prices varied between Rs 900 to Rs 1500, while prepayment orders often fell between Rs 400 to Rs 800. To meet these inclinations, direct-to-consumer marketers are emphasising trust through better customer service and communication.
Chirag Taneja, Co-Founder and CEO of GoKwik, emphasised the growing popularity of direct-to-consumer firms and their capacity to provide personalised experiences and unique products. He stated, "The transition to direct-to-consumer brands is growing more prominent, with consumers appreciating direct connections and distinctive goods. We are eager to help companies fulfil increased demand and decrease difficulties such as Return to Origin (RTO)."
