The Digital Shift: How Online Brands are Reshaping India’s Consumer Sector


The landscape of consumer goods in India is undergoing a significant transformation, primarily driven by the surge of digital brands. This transformation is shaped by various trends and economic factors, as evidenced by multiple sources.

  1. Growth of Digital Brands: Digital brands, particularly in the Direct-to-Consumer (D2C) sector, are experiencing rapid growth in India. In recent years, the D2C sector has seen significant milestones, including the emergence of its first unicorn, Licious, and several brands like boAt, Mamaearth, Wakefit, and Country Delight crossing Rs 100 crore in revenue in a short span. The D2C sector in India is projected to be worth $100 billion by 2025, up from $44.6 billion at the end of fiscal year 2021​​. This growth is driven by a digital-first consumer mindset and the proliferation of digital-native brands that offer exclusivity, personalized engagement, and products that are more conscious of communities and the planet​​.
  2. Investment and Marketing Dynamics: There has been a 65% increase in Indian brands developing their own websites, leading to more self-shipped orders. However, with the rise in customer acquisition costs and changes in digital marketing due to privacy updates and the phasing out of third-party cookies, brands are facing challenges in maintaining profitability and growth​​. To adapt, brands are focusing on creating a unique identity through content, community, and commerce​​.
  3. Technology and Infrastructure: The technological infrastructure supporting these digital brands is also evolving. Traditional commerce tech platforms are being replaced by modern, agile, full-stack technologies purpose-built for digital-native brands. The global D2C market is expected to reach $1.1 trillion by 2025, with the US and India contributing significant shares​​.
  4. Government Policies and Economic Growth: The 2023-2024 Union Budget of India is set to improve consumer demand, with initiatives aimed at increasing the disposable income of the middle class and enhancing farmer incomes. The government’s focus on AI and digitization is expected to drive shifts in consumer behavior​​. Additionally, increased infrastructure development and a focus on rural infrastructure are likely to stimulate rural demand for branded consumer goods​​.
  5. India’s Internet Economy: India’s internet economy is projected to reach $1 trillion by 2030. This growth will be underpinned by a shift in consumer behavior and the business ecosystem, including the digitization of traditional businesses and a thriving startup ecosystem​​​​. With India’s internet users increasingly adopting digital platforms, sectors like B2C e-commerce, HealthTech, InsurTech, and SaaS are expected to see substantial growth​​.
  6. Consumer Preferences and Digital Adoption: Around 80% of consumers now prefer digital-first experiences, signaling a significant shift towards online platforms. This preference is particularly notable in India’s smaller towns and Tier 2+ locations, where consumers are demonstrating a greater openness to new brands and personalized services​​.

In summary, the digital brand ecosystem in India is experiencing rapid growth and transformation, driven by evolving consumer preferences, technological advancements, and supportive government policies. This trend is reshaping the landscape of consumer goods in India, presenting both challenges and opportunities for businesses and investors.

Share:

MORE STORIES

## Navigating the AI Revolution: 5 Trending Google Ads Topics for Marketers As Google Ads continues its rapid evolution, staying ahead of the curve is paramount for digital marketers. The platform’s increasing reliance on artificial intelligence, shifting privacy landscapes, and the introduction of new campaign types are creating a fresh set of challenges and opportunities. Here are five top trending blog topics that delve into the most critical areas of Google Ads today. ### 1. The Rise of the Machines: Mastering AI-Powered Campaign Types Google is unequivocally betting on AI to drive the future of its advertising platform. A key area of focus for marketers is understanding and mastering AI-driven campaign types like Performance Max and Demand Gen. These campaigns automate targeting, bidding, and ad creation across Google’s entire inventory. A deep dive into strategies for providing the right inputs to these “black box” models, interpreting their performance, and understanding how to guide the AI for optimal results is a crucial topic for advertisers looking to succeed in this new era. ### 2. Beyond the Click: Navigating the New Landscape of Measurement and Attribution With the impending deprecation of third-party cookies and a growing emphasis on user privacy, the way advertisers measure success is undergoing a fundamental shift. This has propelled topics like enhanced conversions, consent mode, and the integration of first-party data to the forefront. Marketers are actively seeking guidance on how to implement these privacy-centric measurement solutions to gain a more accurate and holistic view of their campaign performance in a world without granular user tracking. ### 3. Creative is the New Targeting: Leveraging AI for Compelling Ad Experiences In an automated world, the creative has become a key differentiator. Google is investing heavily in AI-powered tools that can generate and optimize ad copy, images, and videos. Blog posts that explore how to effectively use these generative AI features to create a high volume of diverse and engaging ad creatives are gaining significant traction. This includes best practices for providing creative inputs, A/B testing AI-generated assets, and ensuring brand consistency across automated campaigns. ### 4. The Evolution of Search: Adapting to a More Conversational and Visual SERP The traditional keyword-based search is evolving. Users are increasingly employing longer, more conversational queries, and Google is responding with a more visual and AI-driven search engine results page (SERP). This shift requires a re-evaluation of traditional keyword research and bidding strategies. Trending discussions revolve around how to adapt to this new reality, including the role of broad match keywords, the importance of high-quality creative in visual search formats, and strategies for capturing intent in a more conversational search landscape. ### 5. Future-Proofing Your Strategy: The Growing Importance of a Full-Funnel Approach As automation takes over many of the manual levers within Google Ads, the focus is shifting towards a more strategic, full-funnel marketing approach. Advertisers are looking for insights on how to effectively use different Google Ads campaign types to guide users through the entire customer journey, from initial awareness to final conversion and retention. This includes discussions on how to structure campaigns to complement each other, allocate budgets across the funnel, and measure the impact of upper-funnel activities on bottom-line results.

Google Ads is in the midst of a quiet revolution—one driven by artificial intelligence, privacy-first regulations, and a rapidly changing search landscape. For digital marketers,

Send Us A Message