Average Order Value (AOV) for direct-to-consumer (D2C) brands also reports an 11 per cent jump year on year, from Rs 1,368 to Rs 1,869
In a significant shift in the online retail landscape, direct-to-consumer (D2C) brands have outpaced marketplaces during the recent sale period, recording a 64 per cent growth in orders from last year, compared to the 26 per cent growth seen on marketplaces, according to a finding by GoKwik. This shift reflects growing shopper confidence and trust in D2C brands making them inert to marketplace sales.
Major marketplaces of the Indian ecommerce ecosystem ran their biggest festive sales starting from 25 September all the way till Dussehra. D2C brands are now also running robust sales parallel to marketplace sales, and continuing to see a surge in order volume.
Footwear, a commonly offline dominant category, emerged as a leader in driving growth and saw a massive 273 per cent increase in orders, followed by fashion and beauty, which saw an 84 per cent and 73 per cent increase in orders respectively.
“D2C is here and thriving, the ecosystem is expanding and the market is deepening,” said GoKwik’s Co-founder and Chief Executive Officer (CEO), Chirag Taneja. “Shoppers are more confident about placing their bets on D2C now more than ever. The personalisation, niche products, and seamless shopping experience brands have been providing to these shoppers is reaping results,” he added.
Jewellery too, which is predominantly preferred to be bought online saw a 38 per cent increase in orders. This cements the growing shopper trust in D2C that even offline heavy items are now being bought online.
Electronics, however, experienced a 3 per cent slowdown, likely impacted by the rise of quick commerce, the dominance of marketplaces with high-end discounts on mobile phones, TV etc, and a possible resurgence in offline shopping as offline retailers have also been matching online deals.
Average Order Value (AOV) for D2C brands also saw an 11 per cent jump year on year, from Rs 1,368 to Rs 1,869. Jewellery, often a category viewed with scepticism in the early days of ecommerce, led this surge, with AOV increasing from Rs 1207 in 2023 to Rs 1809 this year.
Payment behaviour has also undergone a transformation. GoKwik’s data reveals a 5 per cent increase in prepaid orders, especially in fashion, where shoppers are increasingly opting to pay upfront.
“While unified payments interface (UPI) continues to be shoppers’ favourite prepaid mode of payment, equated monthly instalments (EMI) also seem to be the flavour of the season. With GenZ shopping more and more, brands are bridging the gap between aspiration and affordability by providing easy and flexible EMI options.” Chirag said.
Tier-1 contributed the most to this surge in orders, witnessing a 96 per cent spike, an unusual trend during the festive season. Usually, these surge in orders during the festive season were led by Tier-3 cities. Tier-1 cities also saw the highest increase in AOV.
Geographically, Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Tamil Nadu continued to be the states with the highest surge in order volumes.
