D2C Brands Witness 27 Percent Surge in Orders Ahead of Diwali

Direct-to-Consumer (D2C) brands have witnessed a major surge in sales during this year's Diwali festivities. According to a report by ClickPost, daily orders by D2C brands have increased by 27 percent during the Diwali period compared to last year. Along with this, a jump of approximately 45 percent has been recorded in the total value of goods sold, i.e., the Gross Merchandise Value (GMV). This report is based on the analysis of over 8 crore orders placed on the websites of nearly 400 D2C brands, where the period from September 20 to November 5 this year was compared with the period from September 1 to October 17 last year.

According to the report, the sales value grew 1.7 times faster than the number of orders. The primary reason for this is that consumers preferred purchasing expensive products and focused on premium items instead of seeking cheaper alternatives. Specifically, consumer spending remained higher in high-value categories such as luxury fashion, skincare, wellness, and jewellery. In the jewellery sector, the average value of prepaid orders increased by 7.4 percent to ₹ 5,773, while in the nutrition and wellness sector, this value rose by 11.1 percent to reach ₹ 936.

Despite the increased load of orders, the delivery system has become more reliable. Failed delivery attempts have decreased from 22 percent last year to 21 percent, and the proportion of orders returned by customers has dropped from 11 percent to 10 percent. The average delivery time across the country has decreased from three days to two and a half days. Delivery operations in smaller towns performed better than in metro cities. In Tier 2 and Tier 3 cities, 83 percent of orders reached on time, while this figure remained 78 percent in metro cities. A significant improvement has been seen in Tier 3 cities compared to 74 percent last year.

The festive season lasted longer this year. In late October, when Dussehra, Karwa Chauth, and Diwali fell within an 18-day window, there were more than 10 days where the flow of orders remained very high. Brands are now providing fast delivery facilities through their own websites and apps. In addition to quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto, the proportion of hyperlocal delivery on brands' own websites has increased from 2.6 percent last year to 5 percent. Speaking of categories, beauty and personal care remained the largest category, with orders increasing by 33 to 39 percent across all cities. In the fashion sector, an increase of 33 percent was recorded in Tier 3 cities and 29 percent in metro and Tier 2 cities.

D2C, or Direct-to-Consumer business model, is one in which companies sell their products directly to customers without intermediaries or retailers. This model has rapidly gained popularity in the Indian market over the last few years, which helps brands establish direct contact with customers and obtain data.