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D2C Brands outpace marketplaces with 64% increase in festive Sales

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Direct-to-consumer (D2C) brands saw a 64% increase in orders during the recent sale, outpacing marketplaces, which had a 26% growth from last year, Gokwik reported.

E-commerce Sales Surge During Dussehra Festive Week

According to Economic Times, this change shows that shoppers now trust D2C brands more, making them less dependent on marketplace sales. Major Indian eCommerce platforms had their biggest festive sales from September 25 till Dussehra. Before, D2C brands saw fewer orders during this time, but that has changed since last year.

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Now, D2C brands are running strong sales alongside marketplaces and seeing more orders. GoKwik’s Co-Founder and CEO, Chirag Taneja shared, “D2C is here and thriving, the ecosystem is expanding and the market is deepening.” He further said, “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.”

Footwear and Jewellery surge, electronics lag due to market competition

Meanwhile, footwear, usually bought in stores, led growth with a 273% increase in orders. Fashion & beauty followed with 84% and 73% growth, respectively. Jewellery, typically bought online, saw a 38% increase in orders. This shows growing trust in D2C brands, even for items usually bought offline.

However, electronics saw a 3% decrease in orders, likely due to the growth of Quick Commerce, big discounts on marketplaces for items like phones and TVs, and more people shopping in stores where deals match online offers.

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Notably, the Average Order Value (AOV) for D2C brands increased by 11% year-on-year, rising from INR 1,368 to INR 1,869. Jewellery, once viewed sceptical in early eCommerce days, saw the biggest jump, with AOV growing from INR 1207 in 2023 to INR 1809 this year.

E-commerce Sees 5% Increase in Prepaid Orders

Payment behaviours have changed too. GoKwik’s data shows a 5% rise in prepaid orders, especially in fashion, where more shoppers are paying upfront. Chirag explained, “While UPI continues to be shoppers’ favourite prepaid mode of payment, EMI also seems 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.”

With a 96% spike, tier 1 cities saw the biggest increase in orders, which is unusual for the festive season. Normally, Tier 3 cities lead in order surges during this time. Tier 1 cities also had the highest rise in Average Order Value (AOV). States like Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Tamil Nadu had the highest order volumes.

Looking further, GoKwik backs over 10,000 brands like Lenskart, Neemans, Man Matters, and Shoppers Stop. These brands cover fashion, beauty, health, electronics, and other key online shopping areas.

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