As D2C Channel Gains Popularity, Fashion & Accessories Segment Sees Fastest Growth
By Kritika Arora
As the direct-to-consumer (D2C) channel grows in prominence, the fashion and accessories segment has become early adopters. The segment has seen an increasing number of D2C brands over the past two years, according to a joint report by Unicommerce and Wazir Advisors on retail and e-commerce trends in India.
In FY22, the fashion and accessories segment saw 89.5% year-over-year growth across brand websites, compared to 52.2% growth the previous year. Even major offline retail players are now focusing on selling through brand websites, according to the report. the fashion and accessories segment is the healthcare and pharmaceutical segment which saw order volume growth of 84.8% on brand websites, alongside its moderate growth of 9.2% on market places. The segment is largely dominated by consumers ordering nutraceuticals and health supplements. This leads to strong growth of brand websites as consumers prefer to order directly from the brand, according to the study. Another contributing factor to its growth is the emergence of many new nutraceutical players over the past year, he added. additionally, brands across all segments are establishing a strong online presence with a focus on direct-to-consumer sales and companies have realized the importance of investing in strong brand website operations to grow a connection with consumers.
Brand websites posted 80.4% year-on-year growth in FY22, while marketplaces saw 59.6% growth in the same period, according to the study .
However, marketplaces have historically generated the majority of e-commerce order volumes as they benefit from consumer trust with faster deliveries. They will continue to hold the majority share of order volume for the foreseeable future, according to the study.
In marketplaces, the beauty and personal care segment has grown faster than brand websites due to faster delivery processes and technologies.
Marketplaces continue to dominate the footwear segment and it saw order volume growth of 72.3%, compared to 42% growth on brand websites. Shoppers like to research multiple brands before making a purchasing decision, which explains the robust growth of the market, according to the study.
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