Shoptimize, a global direct-to-consumer (D2C) eCommerce platform, announced a collaboration with G.O.A.T Brand Labs to accelerate growth for D2C brands in India. The partnership will enable G.O.A. T’s D2C lifestyle brands to leverage Shopitimize’s platform and sector-specific expertise.
Shoptimize has successfully grown large enterprises such as Whirlpool, Luminous, and Haldirams and several digital-first startups such as Aadyaa, Paio and Iba Cosmetics.
Mangesh Panditrao, Co-founder and C.E.O., Shoptimize, said, “Consumers now prefer online shopping for a wider range of products, from necessities to branded goods. We have seen a 300 percent increase in D2C brand business in the consumer durables, food and lifestyle categories since the beginning of this year.”
Consumer behavior has changed after the pandemic
The recent pandemic outbreak led to changes in consumer behavior, including a preference for homegrown digital-first brands. The majority of the new crop of consumer-focused brands that followed the direct-to-consumer (D2C) approach saw a significant increase in revenue and sales in 2020 and 2021.
Traditional brands have also recognized the potential in this channel and are venturing into D2C. Shoptimize has been working in this space through its growth platform, which provides A.I. driven real-time insights and recommendations to grow businesses for D2C eCommerce platforms.
“We have witnessed that a lot of D2C brands who are just starting don’t have the funds to grow as they need to. Through this partnership with G.O.A.T Brand Labs and their expertise, we see the opportunity to identify growth drivers and help D2C brands scale exponentially, said Mangesh Panditrao.
The Indian D2C market potential
A 2021 Ernst and Young report has stated that companies are creating an omnichannel presence, blending online shopping and offline retail to overcome the trust issues of customers. Leading e-tailers in India are planning to open brick-and-mortar stores. Digital D2C companies have also invested in creating brands that attract a young millennial crowd comprising of a majority of the online shoppers who tend to be more brand conscious.
These companies are forming innovative product bundles aligned with customers’ needs and thus ensuring greater customer engagement. Through its Digital India campaign, India’s Government aims to create a trillion-dollar online economy by 2025.
India e-commerce is expected to reach US$99 billion by 2024, growing at a 27 percent CAGR over 2019-24, with grocery and fashion or apparel likely to be the key drivers of incremental growth. Online retail penetration is expected to reach 10.7 percent by 2024, versus 4.7 percent in 2019, while online shoppers in India are expected to reach 220 million by 2025.
India is currently home to more than 800 D2C startups. Earwear product boat was fastest among them to reach INR 100 crore revenue mark and many other brands are in the foray to get a share of the pie as the sector witnessed a boom.
G.O.A.T Brand Labs looking to revolutionize the D2C space
G.O.A.T. Brand Labs is a Bangalore-based venture that focuses on lifestyle brands and provides them with funding, seamless data insights and deep expertise in brand building, digital marketing and product development. Recently the company announced a fundraise of $36 million in equity and debt, led by Tiger Global and Mayfield, Flipkart Ventures and other investors.
Rishi Vasudev, Co-founder and C.E.O., G.O.A.T Brand Labs, said, “Our purpose at GOAT Brand Labs is to give better choices to consumers by helping brands and their passionate creators grow and thrive.”
“Through this partnership with Shoptimize, we will enable the brands that we partner with to leverage tech-driven growth insights and tools that the team at Shoptimize has built. These tools, in combination with the industry expertise, operational experience and an overall ecosystem that we are going to bring, hold potential for huge value creation for brands,” he added.