 "women entrepreneurs")
Women-led direct-to-consumer (D2C) brands witnessed a remarkable surge in business, with transactions via Simpl's Checkout Solutions increasing 54-fold in 2023 compared to 2022, as revealed by Simpl Checkout Scan. This significant growth is attributed to the increasing number of customers turning to D2C brands online to fulfil their niche requirements affordably.
Commenting on this development, Khanaz K A, CXO - D2C business at Simpl, said, "The Indian retail industry is undergoing a transformational change with the rise of D2C brands, offering niche products to fulfil customers' evolving requirements in a trustworthy and affordable manner. We have developed an array of solutions, including 1-Tap Checkout, Simpl Checkout, Checkout Suite and Early Settlement, among others, to power their business. This is leading to an increasing number of D2C brands across the country, including women-led, partnering with Simpl to improve business and enhance customer experience."
Top growth categories for women-led D2C brands
The top categories showing growth for women-led D2C brands in 2023 included beauty and wellness, apparel, artificial jewellery, supplements, and personal care.
Demand in these categories was led by brands such as Earth Rhythm, Inweave, Trubrowns, Raw Beauty Wellness, Dermabay, Estele, Fitspire, and Protouch Skin.
Gen Z and millennials driving D2C brand demand
While Gen Z and millennials were driving the demand for D2C products, Simpl found that around 65 per cent of customers placing orders with women-led D2C brands hailed from non-metro cities. This trend reflects the increasing adoption of internet commerce in tier 2 and tier 3 cities, where customers are going online to meet their evolving requirements.
Simpl's report cites the increasing demand for D2C brands, especially in the beauty, skincare, hygiene, and personal care segments, to be driven by changing user behaviour. Customers are seeking sustainable solutions over quick fixes, fuelling the growth of the overall industry.
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Projected growth in D2C brands
Women-led D2C merchants also experienced a 54-fold increase in customer growth. Additionally, there was a 1.4-fold increase in the average order value (AOV) in 2023 compared to 2022. These brands recorded an annual order checkout volume of nearly Rs 100 crore via Simpl's network in 2023.
According to KPMG, the Indian D2C market value is projected to exceed $60 billion by 2027, up from approximately $12 billion in 2022, with a compound annual growth rate (CAGR) of 40 per cent.
This accelerated business growth is also encouraging women founders of D2C brands to invest further in their businesses. This has the potential to lead to more job opportunities, establish manufacturing hubs, and increase investment in warehousing infrastructure across key hubs.
Shveta Narula, founder and CEO at Inweave, said, "We are witnessing robust growth in demand for our products and our partnership with Simpl has been simplifying customer journeys across the board while helping us reduce business costs. Over the last 10 months, we have witnessed a 12 per cent increase in conversions led by convenience and consumer intelligence, enabling us to invest in enhancing our capacities. We are doubling our warehousing space and increasing our manufacturing and workforce count by 50 per cent to cater to the increasing demand from customers across the country."
