D2C brands see 64% surge in festive orders, outperforming marketplaces: GoKwik

The Indian electric vehicle (EV) market is poised for "strong and steady" growth through 2030 as companies Direct-to-consumer (D2C) brands have significantly outperformed marketplaces during the recent sale period, achieving a remarkable 64% growth in orders YoY, compared to 26% growth on marketplaces, according to GoKwik. This trend reflects increasing shopper confidence and trust in D2C brands, which have become less reliant on marketplace sales. Major Indian E-Commerce marketplaces launched their largest festive sales from September 25 through Dussehra. Previously, D2C brands experienced a decline in orders; however, since last year, they have successfully run robust sales alongside marketplace events, resulting in a surge in order volume. Co-founder and CEO of GoKwik, Mr. Chirag Taneja, noted that D2C brands are thriving, driven by personalization, niche products, and seamless shopping experiences. Footwear, traditionally offline-dominant, led the growth with a staggering 273% increase in orders. In comparison, fashion and beauty saw 84% and 73% growth, respectively.

The Average Order Value (AOV) for D2C brands also rose by 11% YoY, from US$ 16.28 (Rs. 1,368) to US$ 22.25 (Rs. 1,869), with jewellery leading the increase from US$ 14.37 (Rs. 1,207) in 2023 to US$ 21.53 (Rs. 1,809) this year. Payment behaviour has evolved, with a 5% increase in prepaid orders, especially in fashion, where consumers are opting for upfront payments. He pointed out the rising popularity of EMI options among shoppers. Tier 1 cities contributed significantly to this surge, witnessing a 96% increase in orders, diverging from the usual trend led by Tier 3 cities during festive seasons. States such as Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Tamil Nadu recorded the highest order volume increases. GoKwik collaborates with over 10,000 brands, including Lenskart, Neemans, Man Matters, and Shoppers Stop, spanning categories like fashion, beauty, health and nutrition, and electronics. The E-Commerce enabler anticipates this positive trend will continue through the upcoming Diwali festive season.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.