Direct-to-consumer (D2C) brands experienced a substantial 64% increase in orders during the recent festive season, significantly outperforming the 26% growth recorded by online marketplaces, according to GoKwik. Footwear, fashion, and jewelry sectors witnessed remarkable growth, further solidifying consumer confidence in these brands. Tier 1 cities played a pivotal role, contributing to a staggering 96% surge in orders.
In a notable shift from previous years, D2C brands ran successful parallel sales alongside major eCommerce marketplaces, such as those that launched their festive campaigns from September 25 through Dussehra. Historically, D2C brands would see a decline in sales during this period, but the trend has reversed since last year.
“D2C brands are flourishing, and the market is expanding,” commented Chirag Taneja, Co-Founder and CEO of GoKwik. “Consumers now have more trust in D2C brands, thanks to their personalized products and seamless shopping experiences, which is paying off in terms of increased order volumes.”
Footwear, traditionally a strong offline category, led the surge with an impressive 273% increase in orders. The fashion and beauty sectors followed closely, with order growth of 84% and 73%, respectively. Even the jewelry segment, where online shopping was initially met with hesitancy, saw a 38% rise in orders, reflecting growing consumer trust in D2C offerings.
In contrast, electronics saw a slight decline of 3%, which could be attributed to QuickCommerce gaining popularity, heavy marketplace discounts on high-end gadgets, and a resurgence of offline shopping as physical stores match online deals.
D2C brands also witnessed an 11% increase in Average Order Value (AOV), rising from ₹1,368 last year to ₹1,869. Jewelry, once viewed skeptically in online commerce, led this rise, with AOV jumping from ₹1,207 in 2023 to ₹1,809 this year.
Payment habits have also evolved, with a 5% rise in prepaid orders. Fashion shoppers, in particular, are opting for upfront payments, with UPI being the most preferred method. Additionally, easy EMI options have gained popularity, especially among Gen Z shoppers, allowing them to balance affordability with aspiration.
Tier 1 cities dominated the festive sales, witnessing a 96% increase in orders, a notable deviation from the usual trend where Tier 3 cities lead the festive shopping surge. The highest growth in AOV was also seen in Tier 1 cities, further reflecting a shift in consumer behavior.
States like Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Tamil Nadu topped the charts in terms of order volume growth.
GoKwik, which supports over 10,000 brands, including Lenskart, Neemans, and Shoppers Stop, anticipates that this upward trend in D2C sales will continue in the lead-up to Diwali, reflecting the strong momentum in the eCommerce sector.