Market size for D2C brands in 2025 predicted to be at $100 billion+ in India: Kantar

Kantar, the marketing data and analytics company, has released a comprehensive digital environment scan and outlook for the year.

Key Findings:

• At 338 million online payment users and 62 billion digital transactions, India is poised to go cashless.
• It is predicted that by 2025 India will have at least 900 million internet.
• At 22%, India leads in digital ad spends, ahead of the UK (9.3%), US (10%), Australia (5.8%), France (11%) and China (3.3%).
• Digital touchpoint impact clocks a steady growth from 2017-18 (36%) to 41 % in 2019 and 49 % in 2020-21.
• A minority of touchpoints deliver the majority of impact (20% of touchpoints show an impact of 80%). Brands should do fewer things, but do them excellently.
• 1/3rd of consumers are buying from social platforms which will only accelerate - 77 million online Shoppers buy through social commerce platforms in India in 2021.
• 1/4th of consumers follow influencers on social media platforms, and of these 40% follow more than 5 influencers. The average number of influencers followed is 7.5
• Digital is more effective when content is customized for the environment. Integrated campaigns with customized creative records 67% Impact
• D2C ecosystem is at an inflection point of rapid growth in India. These brands are driving the growth of online shopping in India.
• The revenue of D2C brands in FY2022 is to the tune of $4 billion. The addressable market size for D2C brands in 2025 is predicted at $100 billion+
• 125 million shoppers have been added in the last three years. 80 million shoppers are expected to be added by 2025. 
• 531 million are active social media users of which 52% are millennials. This is predicted to touch 600 million by 2025.

The report, using data from Kantar’s syndicated assets like ICUBE, Global Issues Monitor, along with Kantar’s Connect, BLI and CrossMedia database, navigates through India’s fast-changing digital landscape which reflects through shopping behaviour, digital payments, digital ad spends by brands and marketers, content consumption on social media and an emerging category of the D2C ecosystem. It also provides actionable recommendations to brands and marketers to leverage the current trends to win in this digital-first era.

Soumya Mohanty, Managing Director and Chief Client Officer, South Asia, Insights Division, Kantar, said, “India is digitizing at a faster pace than ever before. Women, rural will drive this in future and it will also become more cross-generational. As consumers spend more time online, it is important to get a holistic picture of how to reach them, sell to them, talk to them, and build brands for them. Kantar’s slew of digital offers helps marketers navigate Phygital seamlessly.”

Biswapriya Bhattacharya, Director, B2B & Technology, South Asia, Insights Division, Kantar, said, “The growth of the digitally connected consumers is also leading to the emergence and growth of digitally engaged MSMEs. They are empowering and enabling innovative growth in multiple areas like commerce and transaction, marketing and communication, productivity and efficiency enhancement, entertainment, etc. The collective thrust of the digitally connected consumers and the digitally enabled MSMEs, coupled with strong ecosystem enablers like the 5G, ONDC, AI, etc. will be critical to India achieving its goal of creating a USD 1 Trillion digital economy.”

Mohanty added, “Without getting into the debate of brand building and performance marketing, brands should embrace the nature of each platform and touchpoints within that while remaining meaningfully different. What digital gives us is the ability to be even more relevant in context.”

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