Online shoppers in India are seeking new experiences in the age of social and video commerce and this has given digital-first brands a massive $250 billion market opportunity by 2030.
India's e-tailing gross merchandise value (GMV) reached $53 billion in 2021, demonstrating post-Covid acceleration, according to a report by Bengaluru-based market research firm RedSeer.
"Additionally, Indian e-tailing showed impressive growth (on-quarter) in 2021 while other global players struggled to maintain the momentum," the report stated.
"The current B2C retail landscape is evolving rapidly with the emergence of new consumer behaviours and expectations. The rise of new retail channels, particularly video and social commerce, is further changing the way consumers shop and what they expect from brands, said Mrigank Gutgutia, Associate Partner, RedSeer.
As a result, digital-first brands are finding it increasingly rewarding to engage with consumers in these channels and offer them a seamless, omnichannel experience.
"The success of such brands will depend on how effectively they leverage these new retail channels and how they innovate on the digital front to offer a superior omnichannel experience," Gutgutia added.
The findings suggest that consumers opt for these new-age brands for their quality (and not only price) with significantly high repurchase willingness.
Multiple $100 million revenue technology-first brands have been created already across the categories in just the past few years, with each having a unique winning playbook and first-of-their-kind business model.
"Over the 2021-30 period, we expect many more digital-first brands to scale exponentially, supported and incubated by roll-up platforms that are building the next wave of digital-first brands for India," the report noted.