The Indian electric vehicle (EV) market is on track for "strong and steady" growth through 2030, as emerging Direct-to-Consumer (D2C) brands have outpaced traditional marketplaces during recent festive sales. According to a report by GoKwik, D2C brands achieved an impressive 64% growth in orders year-on-year (YoY), while marketplaces recorded a more modest 26% growth. This trend indicates a growing shopper confidence and trust in D2C brands, which are becoming less reliant on marketplace sales.

From September 25 through Dussehra, major Indian e-commerce marketplaces launched their largest festive sales, presenting a key opportunity for D2C brands. After experiencing a decline in orders in previous years, D2C brands have adapted and thrived, successfully running robust sales alongside marketplace events, leading to a significant surge in order volume.

Growth Dynamics in the D2C Segment

Mr. Chirag Taneja, Co-founder and CEO of GoKwik, highlighted that D2C brands are flourishing due to several factors, including personalization, niche product offerings, and seamless shopping experiences. Footwear, traditionally dominated by offline sales, led the growth with a staggering 273% increase in orders. Fashion and beauty categories also saw remarkable growth, recording 84% and 73% increases, respectively.

The Average Order Value (AOV) for D2C brands rose by 11% YoY, climbing from US$ 16.28 (Rs. 1,368) to US$ 22.25 (Rs. 1,869). Notably, the jewellery category led this increase, with AOV rising from US$ 14.37 (Rs. 1,207) in 2023 to US$ 21.53 (Rs. 1,809) this year.

Changing Consumer Payment Behavior

Consumer payment behavior is evolving, with a 5% increase in prepaid orders, especially within the fashion segment, where customers are increasingly opting for upfront payments. The report also indicates a rising popularity of Equated Monthly Installment (EMI) options among shoppers, providing flexible payment solutions that cater to consumer preferences.

Geographic Insights and Collaborations

Interestingly, Tier 1 cities have emerged as significant contributors to this growth, witnessing a 96% increase in orders. This shift diverges from the usual trend of Tier 3 cities leading festive season sales. The states of Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Tamil Nadu recorded the highest order volume increases during this period.

GoKwik collaborates with over 10,000 brands, including prominent names like Lenskart, Neemans, Man Matters, and Shoppers Stop, spanning categories such as fashion, beauty, health and nutrition, and electronics. Given the positive momentum observed, GoKwik anticipates that this trend will continue through the upcoming Diwali festive season, further solidifying the position of D2C brands within the Indian e-commerce landscape.

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