D2C Brands Set to Revolutionize $2.2 Trillion Indian Retail Market with Omnichannel Strategies
A recent report titled “Decoding Omnichannel: Strategies for D2C Brands” by Accel, Fireside Ventures, and Redseer Strategy Consultants forecasts a seismic shift in the Indian retail market, which is projected to balloon to $2.2 trillion by 2030. With a significant $200 billion of that expected to come from online retail, the landscape is ripe for an omnichannel transformation that blends digital and physical shopping experiences.
The study reveals that 90% of offline purchases in India are influenced by online interactions, underscoring the importance for brands to adopt an omnichannel presence. This approach is particularly vital in categories such as jewellery, where consumers prefer to browse online before making final purchases in-store to assess product fit and style personally.
One notable example is Bluestone, which has enhanced the customer experience by providing an extensive online catalog and the option for in-store trials of selected products. This strategy not only eases the decision-making process but also enriches the customer’s engagement with the brand.
D2C brands, renowned for their robust online strategies, are now poised to extend their prowess to offline channels. Anil Kumar, Founder and CEO of Redseer Strategy Consultants, highlights the evolution of digital-first brands. “Players are evolving towards the next step of broadening their focus by serving consumers where they are, be it online or offline,” he noted. A prime instance of such expansion is Mamaearth, which started as an online-exclusive brand but now generates a substantial portion of its revenue from physical retail outlets.
The omnichannel approach addresses unique Indian market challenges, blending trust with convenience to overcome barriers inherent in standalone online or offline strategies. Prashanth Prakash, Partner at Accel, illustrated this point with the story of Agrostar, which caters to rural farmers by merging the convenience of online orders with the tangible benefits of in-store interactions.
The diversity of strategies among different brands underlines the flexibility of the omnichannel model. Kanwaljit Singh, Founder and Managing Partner at Fireside Ventures, pointed out, “For every Sweet Karam Coffee that leverages q-commerce as a discovery channel, there’s a boAt that uses it to drive e-commerce bestsellers front and centre.”
With prominent venture capital firms like Accel and Fireside Ventures backing these initiatives, the roadmap for integrating online and offline experiences is clear. This strategic pivot is not only enhancing customer engagement but also setting a benchmark for retail innovation in India’s booming market.