If 2020–2021 was where D2C Brands marked online and internet penetration, built their brands through marketplaces and their own websites and apps, 2022–2023 is the rise of Retail stores and physical distribution for digital-first brands. The scope for D2C Brands' growth is massive now that the playing field is much larger. 

The D2C 100 is not just a compendium of the Power 100 brands, but it also spells out D2C strategies, digital transformations, and physical adaptations that have been utilized post-COVID, which may be critical to sustaining growth, mitigating decline, turning things around, and blazing a new trail.

Download the report here: https://www.indianretailer.com/images/pdf/d2c-feature-report.pdf

Interestingly, this year in the D2C 100, the most powerful strategy for growth has been physical expansion. The move allowed these digital-first brands to get in front of consumers and establish more trust and accountability. Not only does it validate the stress testing of the customer's ability to pay, but it also allows a brand to play with customer offers through enhanced interactive displays. Moreover, customers prefer getting products immediately after purchase, bypassing shipping wait times, surging shipping prices, and lengthy returns. From a strategic perspective, D2C brands can now build upon their excellent digital reputations and customer momentum, localizing products and marketing rather than selling the same products nationally in a department store. 

According to a recent research report by CRISIL, brick-and-mortar retail will grow at 14-16%, driven by continued expansion across segments – food, grocery, apparel and consumer durables. The new store additions would drive revenue growth of 18-20 percent, and the full impact of the expansion would be seen in the next few years.

With more D2C brands making this transition, what does the future of D2C business models look like? Today, with the “commission” that the D2C brands have to pay Google, Amazon, Facebook and Instagram to acquire new customers, it has become more expensive than physical locations. The important strategy for D2C Brands going forward would be to address how to make stores more easily accessible and convenient for customers. This approach also encourages users to engage more with the digital product by integrating it into the app.