What is Direct to Consumer (D2C)?
D2C refers to when a manufacturer or producer sells directly to consumers through their website. The traditional retail business model begins with the manufacturer/producer, then to a wholesaler, then to a distributor, then to retailers, and finally to the consumer.
The middleman is eliminated in the direct-to-consumer e-commerce model. According to research, 55 percent of consumers prefer to shop directly with the brand manufacturer rather than with retailers. Source-www.inc42.com
Scope of D2C in India.
According to KPMG data, there are currently over 800 D2C brands operating in India. Since 2014, D2C players have raised more than $2.5 billion, valuing the D2C sector in India at $44.6 billion by 2021. By 2025, the market size is expected to reach $100 billion. Since D2C is still in its development stage, the scenarios described above will be ideal for D2C businesses to explore and experiment with the market to find the appropriate formula.
Even though macroeconomic conditions seem to be in their favor, D2C businesses may face multiple constraints to be profitable in the sector. Several D2C brands, such as Boat, Wow Skin Science, Lenskart, Licious, MamaEarth, and others, are targeting unique niches in recent years and built strong brand experiences for consumers. Source- www.indianretailer.com
The growth of direct-to-consumer (D2C) segments
The larger factor is the 700 million-strong internet population, which is growing at a rate of 24 percent per year. Second, the Covid-19 pandemic has accelerated, willingly or unwillingly.
The e-commerce industry is expected to grow at a CAGR of more than 35% over the next five years, from $39 billion today to $200 billion. Source- www.indianretailer.com
D2C's potential for growth
More than 800 new-age brands in India farewell to middlemen and went direct-to-consumer (D2C). The direct-to-consumer (D2C) model has grown in popularity across the country because it allows brands to bypass intermediaries and reach consumers faster and more efficiently.
The recent Covid-19 pandemic hit the traditional retail sector hard, highlighting the importance of shifting to a digital-first D2C model. The pandemic has accelerated the growth of many major D2C brands, with those with dedicated websites experiencing an 88 percent increase in consumer demand in 2020 compared to the previous year. Source- www.inc42.com
How does Valuqo Capital add value?
Valuqo Capital has been extensively involved in the D2C (consumer) segment for a while and has developed skills and knowledge parallel with top industry professionals. Our clients range in this segment range from healthy food brands to fashion brands. We have built research reports, fundraising collaterals and have successfully executed various projects at different stages according to their requirements (ranging from market budgeting, monthly projections, and fundraising exercises)
Our team works rigorously with the founders (or the management) and equips them for their next stages of growth. For more connect at firstname.lastname@example.org.