The female-led DTC is rising, accounting for 40% of the Instamojo segment

The female-led DTC is rising, accounting for 40% of the Instamojo segment

More women drove DTC (direct to buyer) organizations are coming into the spotlight. Over of 500,000 ladies visited the Instamojo site in 2021 inquiring  about setting up their business on the e-commerce stage, as per the ‘Indian DTC brands eCommerce outlook 2022’ report launched by Instamojo. The report was launched as a piece of the review draws upon the experiences of more than 20 lakh small businesses in 2021. Around 40% of the total online based businesses utilizing Instamojo are ladies, with expanded interest from ladies matured over 50, said the report by Instamojo, India’s biggest full-stack digital solutions supplier for D2C and entrepreneurs, which directed a study across its platform to comprehend the trends and developments in the DTC e-commerce space.

The report said the year 2022 will be ruled by consumer sentiment. As e-commerce grows, brands will be conscious of the product they are selling, and also how they are selling it. There will be a heightened focus on sustainability, not just for the product but for the entire supply chain. Also, consumers are also becoming more aware of ‘where’ the product comes from. There has been an increase in Indians wanting to support local and small businesses over industrialised factory products or from multinational corporate brands.

“As entrepreneurs and small businesses increasingly learn the benefits of selling independently online, we can expect the DTC model to catalyse business growth significantly in the coming quarters,” said Sampad Swain, CEO and co-founder, Instamojo. “In the post-pandemic world, the DTC model can be an effective solution to accelerate business recovery. It is heartening to see the digital growth of this sector which has mostly been defined by traditional business models. As we witness the shift of DTC businesses to the online medium, we aim to support the growth journey of more than 250,000 small business owners as they strive towards becoming digitally independent.”

The report said that e-commerce has evolved from ‘commercial transactions that happen over the internet’ to personalised, more customised journeys that feel more human. Brands today will invest in resources that make the entire customer experience frictionless and hassle-free.

Social commerce will be the preferred channel for e-commerce from a consumer point of view. The new wave of DTC brands are aware that selling on Instagram, Facebook, and YouTube is a profitable choice. Instamojo saw a 23 per cent rise in new users who logged in via phones. About 40 per cent of the entrepreneurs on Instamojo that signed up in 2021 had a business profile on social media. The report said the year 2022 will see massive budget expansions on influencer marketing, especially on micro-influencers as they have a better grip on niche categories. To replicate the mall experience, people are hopping on social media LIVE streams to shop while feeling like a part of a community.

For instance, one of India’s leading tech-enabled logistics and order fulfilment platform, witnessed a 60 per cent growth in the number of independent sellers on-boarding on its platform. This is a clear indicator of an increase in DTC brands.

As homegrown and independent businesses rise in number, there will also be a significant shift to revenue-based financing over traditional venture capital. An increased consumer consciousness coupled with the rise in social commerce will make 2022 a golden year for Indian DTC brands.DTC brands are expected to spend 40 per cent more on performance marketing. Homegrown independent DTC brands are leveraging the power of digital ads to widen their brand reach. DTC brands that will successfully scale in 2022 will be the ones that identify ways to reduce dependency on Facebook and Instagram alone.

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