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Women rule the direct-to-consumer sector: Report
The Women’s Day Insights report showed over 56 percent of the total sales clocked in by D2C businesses in 2022 were led by women
Women dominated the direct-to-consumer business space in 2022 as they accounted for a majority of the sales of D2C brands in India, revealed a report by Instamojo. The Women’s Day Insights report showed over 56 percent of the total sales clocked in by D2C (direct to consumer)) businesses in 2022 were led by women. The dominance was not only on the consumption side, but also on the entrepreneurial side.
Over 50 percent of D2C businesses on on the Instamojo platform in 2022 are owned by women.
The Indian D2C market size was estimated to be at $55 billion in 2022, according to a report by Modor Intelligence. With an expected CAGR of 34.5 percent during the 2022-2027 period, the total addressable D2C market in India is forecast to hit $100 billion by 2025.
Instamojo is a digital solutions provider for D2C businesses. The company made its entry in e-commerce space early 2021 with a product suite empowering D2C brands to launch their independent online stores.
At least 5 new brands being launched on the platform on a daily basis are owned and operated by women, said Sampad Swain, co-founder & CEO at Instamojo.
“According to a McKinsey study, promoting equity of opportunities for women through jobs and entrepreneurship can add $12 trillion to the global economy by 2025 and the post-pandemic digital boom has provided this opportunity for women in India. On a daily basis, on the Instamojo platform, we see at least 5 new D2C brands being born which are owned and operated by women. This industry has given them the opportunity to expand their homegrown business into a D2C brand with customers across the world. We strongly believe that the next wave of D2C 2.0 would be driven by women who have the ambition and the curiosity to make it big. At the end of the day, it is this sort of impact that leads to embracing equity and what better than clocking it in the business space,” said Sampad Swain, co-founder & CEO at Instamojo.
D2C has emerged as a haven for women sellers, as women accounted for 56 percent of total sales of D2C sellers, and 61 percent of all buyers were women in 2022, showed the report.
In India, tier-1 and tier-2 cities contribute to the largest share of the women D2C brands. It makes up for a total of 89 per cent of all D2C businesses led by women.
Delhi, Hyderabad, and Pune, are the top three cities for women D2C brands in India. They contribute 34 per cent, 18 per, and 17 per cent respectively to the total share of women led D2C brands in India. In D2C sector, Delhi was the fastest growing city for women led brands, recording a growth of 36 per cent since 2021, showed the report.
Categories with the highest women led D2C businesses:
With 85 per cent market share, baby products is the largest category for women led D2C brands. It is followed by jewellery and accessories at 79 per cent, according to the report by Instamojo.
With 33 per cent growth rate, baby products is also the fastest growing in women led D2C business since 2021. While, footwear brands were the second fastest growing segment for women led D2C brands, at a growth rate of 13 per cent since 2021.
Knowledge based women led D2C brands are the best performing
Women led D2C brands that provide online courses and books saw the highest sales in 2023 making them the best performing.
Nearly 31 per cent of all sales made by women led D2C brands were done by businesses that provide educational courses. Nearly 22 per cent of all sales made by women led D2C brands were done by businesses that sells books
Women led D2C brands that sells books were also the fastest growing at the rate of 23 per cent, showed the report.
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First Published:7 Mar 2023, 08:21 PM IST
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