Women-led direct-to-consumer brands see 54-fold growth in 2023: Simpl
- IBEF
- March 8, 2024
In 2023, women-led direct-to-consumer (D2C) brands experienced a substantial surge, with transactions via Simpl's Checkout Solutions increasing 54-fold compared to the previous year. This surge indicates a broader trend as consumers increasingly turn to online D2C platforms for niche and affordable product offerings. Simpl's tailored solutions, such as 1-Tap Checkout and Checkout Suite, have played a pivotal role in fostering partnerships with D2C brands, contributing to improved business dynamics and customer experiences.
Key growth categories for women-led D2C brands 2023 included beauty, wellness, apparel, artificial jewelry, supplements, and personal care. Notably, brands like Earth Rhythm and Inweave led the demand in these segments. The surge in D2C product demand was largely driven by Gen Z and millennials, with approximately 65% of customers hailing from non-metro cities, reflecting the increasing adoption of e-commerce in tier 2 and tier 3 cities. Simpl's report underscores the escalating demand for D2C brands, particularly in beauty, skincare, hygiene, and personal care segments, fueled by evolving consumer preferences favoring sustainable solutions. Women-led D2C merchants witnessed a remarkable 54-fold increase in customer numbers and a 1.4-fold rise in average order value in 2023 compared to the previous year, collectively achieving an annual order checkout volume of nearly US$ 12.1 million (Rs. 100 crore) via Simpl's network. According to KPMG, the Indian D2C market is poised for significant growth, projected to exceed US$ 60 billion by 2027, with a robust compound annual growth rate (CAGR) of 40%.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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