Nearly 150-200 direct-to-consumer brands entered offline retail channels over the past 2 years

About 150 to 200 direct-to-consumer (D2C) brands have entered new offline channels and begun operations on quick-commerce platforms over the past 2 years, as physical retailing still accounts for more than three-fourths of all retail sales. Since 2016, over 600 D2C brands have started operations, receiving more than US$ 4 billion in investment over the past 3 years. However, opening new stores has required additional capital amid a funding winter in recent quarters. "Over the past 12 to 18 months, we have dedicated our efforts to providing growth capital and collaborating closely with our portfolio brands in devising and executing their multi-channel expansion strategies. Our direct involvement with brands like WickedGud has yielded significant outcomes, including their presence in over 200 Reliance Retail stores," said Cofounder of GetVantage, Mr. Bhavik Vasa. He added that they secured exclusive distribution partnerships for brands like NOTO ice cream, Arata, BlueTokai, and EatBetter.

The India D2C market was estimated at US$ 16.9 billion in FY23 and is expected to grow at a CAGR of 38%, reaching US$ 61.3 billion by FY27. For instance, Udaipur-based D2C clothing brand Beyoung plans to open 100 stores by March next year and boost its gross merchandise value to US$ 77.6 million (Rs. 650 crore) by 2027. "As we strengthen our omnichannel presence, we focus on mass markets in India's tier 2, 3, and 4 cities, with plans to expand globally, especially into the MENA regions. We're set to launch 30 stores by December 2024, aiming for 300 stores by 2027," said co-founder of Beyoung, Ms. Shivani Soni. Pee Safe has established a presence in nearly 25,000 retail outlets across over 100 cities with a distribution network of more than 15,000 pharmacy stores. "We are enhancing our market presence in the metro, tier I, and tier II cities, leveraging the online traction in these areas and expanding our in-store product mix," said the founder of Pee Safe, Mr. Vikas Bagaria.

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