Top 5 D2C Brands In India

Posted on February 15th, 2021
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Top 5 D2C Brands In India

Consumer behavior in India has witnessed a massive shift during the Covid-19 pandemic. Brands that adhered to direct-to-consumer(D2C) models witnessed a huge spike in their revenue and sales in 2020. The new normal shows a fresh attitude as customers are seen flocking towards trusted brands, across multiple channels. The emphasis shown lies on justified concerns such as sanitation, health, hygiene and nutrition, along with convenience and supply chain localization.


According to Inc42 Plus, a total amount of $409.8 Mn was raised by home decor and online furniture startups between 2014 and 2020. A recent report from eMarketer states that more than 400 direct-to-consumer (D2C) brands are operational and the web traffic to D2C sites has doubled in the last two years.


An Avendus Capital report states that the D2C segment will lead the next decade of shopping as it is estimated to build a $100-billion addressable market by 2025. The D2C startups of 2021 occupying growth-stage brands such as Wow Skin Science, Healthkart, Mamaearth, MyGlamm, Sugar, Bombay Shaving Company, and more have reached extraordinary heights in their respective sectors.


Let's have a look at the list of top 5 D2C brands in India that are expected to make the biggest impact on the market.


Mamaearth


Mamaearth, India’s fastest-growing brand crossed the Rs 100 crore turnover mark in just four years. It also emerged as Asia’s first brand to get the MadeSafe certification for its toxin-free products. These achievements have catapulted the brand to the top of the online retailers' list for baby care products.


Ghazal Aalgh and Varun Aalgh, founders of Mamearth unearthed the demand for healthy and toxic-free baby products via their personal search for the same. this company. They failed to find any product in the market that matched the required safety standards. This led them to create their company manufacturing chemical-free products for babies using the best available ingredients.


The top D2C contender, Mamaearth generates its larger pie of revenue from online consumers with their ecommerce website giving them maximum orders. Till present day, they have managed to attract 1.5 million consumers across 500 cities of India.


While looking at constantly innovating their product portfolio to stay relevant to their customers, Alagh revealed that “We are planning on expanding our portfolio of Mamaearth and building newer brands like The Derma Co. and more.”


Fit & Glow (WOW Skin Science)


F&G is one of the best direct-to-consumer brands in India using organic ingredients in making wellness and personal care products.


Two pairs of brothers, Arvind and Ashwin Sokke & Manish and Karan Chowdhary began the journey of F&G which today stands strong as a $50 million (Rs 350 crore) business. Its brand, WOW is a huge success in India and abroad. The business has been built solely via eCommerce but has a small offline presence.


Bombay Shaving Company


Bombay Shaving Company, an online-first personal care brand aptly reflects evolving consumer needs with regard to the men’s self grooming market. During the pandemic, the company launched a new range of do-it-yourself (DIY) offerings.


This omnichannel venture generates close to about INR 100+ Cr in revenue, annually, and boasts of 2 million users at this very moment. Shantanu Deshpande, the founder of Bombay Shaving Company said “In the coming months, we are looking at venturing into new categories, cities, and establishing brand equity.”


MyGlamm


MyGlamm acquired the women’s lifestyle content platform POPxo and increased its digital reach exponentially by creating the 3C funnel (content, community, commerce) to reach out to an increasing number of consumers.


They drew in consumers through content and engaged them through their community, all the while encouraging them to discover beauty products, which most consumers naturally purchased. Recently, MyGlamm actualised their product portfolio diversification and moved intelligently from makeup into the wider sector of personal care. They also created an offline branding touchpoint by launching a beauty experience store.


The company has a 2 million consumer base and has grown to generate revenue of INR 200 Cr in FY20. The co-founder Darpan Sanghvi revealed that “Our offline presence is currently in 50 cities in India, we are looking at expanding to 100 cities in 2021.”


The Moms Co


The Moms Co, a leading personal care brand, sells Australia-certified toxin-free products for pre and postnatal, Mom and Baby care. They are offering new mothers safe, natural, effective choices for themselves as well as their families.


The co-founder of The Moms Co. Malika Sadani stated, “Once people started moving out and about, we saw the benefits flow through and we touched the highest ever numbers through offline retail in December 2020.”


The Moms Co’s revenue comes directly from the online and offline channels. They believe that they will continue to grow, and will start seeing benefits of scale across marketing and overheads, aiming to turn profitable at the EBITDA level soon. Sadani also said “In 2021, we are planning to expand our offerings across offline and online channels, along with expanding our business internationally.”


All these local D2C brands have found their niche positioning owing to market conditions and prevalent demands. They optimised their online presence and took advantage of the digital wave. Apart from carving their own space, they have paved a well-lit path for other D2C players.

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Posted on:
February 15th, 2021