Talk about e-commerce: D2C e-commerce

According to a 2022 study, nearly half ( 49%) of respondents said that the factor that most motivates global consumers to buy directly from brands online is better prices. Free shipping was cited by 47% of respondents, followed by free returns, which were cited by more than a third (35%) of respondents.

The most frequently mentioned advantage of the D2C sales method among Russian respondents in February - March 2021 was low prices. More information about the product and comfortable delivery conditions were other commonly reported positive aspects of this sales channel.

In addition, Russian consumers find brand websites more informative and point out the advantages of being able to contact brand representatives directly. Ditching middlemen allows companies to regain control over customer relationships. Results from the Global Consumer Survey Special “E-commerce” conducted in October 2021 show that digital shoppers in China care more about establishing a direct connection with sellers than in other parts of the world. Among respondents in mainland China who have online shopping experience, about 43% said they like online stores that allow them to contact the original seller directly. In the United States, the proportion is 32%.

In 2021, US D2C e-commerce sales reached $128 billion. By 2024, the market is expected to grow to nearly $213 billion. The US is not alone in this direct sales wave. In Germany, D2C e-commerce revenues were valued at €880 million as of the third quarter of 2021, while Russia records a large amount of D2C e-commerce and offline sales, with a total value of €1.72 billion in 2021.

Asia has a thriving direct-to-consumer market. In 2021, e-commerce sales from D2C platforms in Hong Kong were close to HK$16 billion. This figure is estimated to double by 2026. In India, the entire D2C market (including online and offline sales) was estimated at US$44.6 billion in 2021 and is expected to grow further in the coming years.

The growth of direct-to-consumer has not escaped the attention of investors, as evidenced by the staggering amount of funding raised by leading D2C startups in the US and the hundreds of new D2C businesses launched in India. Grove Collaborative, a San Francisco-based D2C e-commerce company that aggregates sustainable brands, has raised nearly $475 million as of 2021 and is one of the most used subscription services in the US. Another example is Lenskart, the eyewear supplier and India’s most funded D2C startup, with nearly $360 million in investments as of April 2021.

Grove Collaborative, a direct-to-consumer e-commerce company focused on the world's No. 1 home and personal care products, has raised approximately $474.5 million in funding as of December 2021. Clothing manufacturer and online retailer Everlane has raised $86.2 million in funding. Other D2C startups with the most funding in the United States include Immi, a high-protein instant noodle maker, which has received $3.8 million in investment from investors.

At the beginning of 2021, the service most subscribed by American consumers was Amazon Prime: in the first quarter of that year, about half of the US population used this subscription service. Online pet food retailer Chewy ranked second, with about 7%.

As of April 2021, Lenskart is the most funded direct-to-consumer (D2C) startup in India, with over $359 million in funding. Pepperfry raised nearly $230 million in investment, followed by boAt and Furlenco, which raised nearly $116 million and $68 million, respectively. Bluestone received $58 million in funding, making it the fifth most funded D2C startup in India.