Unveiling the Rise of Brand.com: Disrupting Indian Retail with Digital Directness

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02 May 2024

Unveiling the Rise of Brand.com: Disrupting Indian Retail with Digital Directness

Brand.com refers to digital-first brands selling products directly to consumers, bypassing intermediaries. While this market has existed in retail for quite a long time, recent online penetration has fuelled its growth, with more brands expected to enter in the near future.

Sharing a snapshot below?.

India boasts one of the highest GDPs globally, at ~US$ 3.4T, and consumer spending constitutes around ~60%. Within consumer spending, retail dominates with a share of about ~50%, contributing around ~30% to India's overall GDP.

The Indian retail market is valued at ~US$ 1T, with offline retail comprising the bulk at around 90%. However, as internet penetration increases, online platforms like brand.com and marketplaces are gaining traction, accounting for the remaining 10% of the retail market.

Sharing a snapshot below.

How brand.com is different from the marketplace or offline market:

Customer experience: Brand.com offers a personalized & controlled customer experience compared to offline & marketplace channels.
Control over branding: Complete control over branding with the opportunity to foster customer loyalty.
Supply chain logistics: Improved control over the supply chain compared to marketplace & offline channels, which often rely heavily on intermediaries.
Market reach: The advantage of targeting specific geographies, but with initially limited reach.
Incurred expenses: Lower overhead costs, yet significant expenditure required for effective performance marketing.

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