Cee ur ad (B8Shiprocket ENDED YX RE arS@) aE 7210) ehPerec (cn) TCs) Me eee eee er on ey but also given us insights into the rising focus of leading players in the digital space. We Ce er er eet ee eee ee nd five years. For this to materialise, the new-age businesses will need to pivot to self-sustaining ee ere eect cena tes titled INDIA D2C REPORT 2022, and would lke to thank them fo their support on preparation Cee eee ee eee ee oc ee enon eee ee eee aera) poe ee ee eke ee ee ee ee ae Bee eee Eee ee en ne Eee SOMANY Chairman, Cl National MSME Council Enron ae TR)oe Tt) eee eo) folds inthe last decade. The role of technology in e-commerce has also evolved significantly with tech-enablers models and providing cutting-edge technology for D2C brands. The COVID-19 induced lockdown led to unprecedented challenges — both at the demand and supply end for retail players. However, technology and tech-led collaborations ensured the ee eee ee ee er ate es a eee eee ed ea ee ‘emerging collaboration models, key drivers and enablers ofthe D2C evolution and its massive Se eee ee een emer eee nec ng ‘end-consumer surveys and 25+ interviews with founders and co-founders across the D2C ‘ecosystem to identify the challenges and bottlenecks in greater Online-Offline integration. The report also highlights that e-commerce penetration in india is ~8%in FY22 and is projected to eae ee ee aaa Pee eee eee Ce) post-COVID future, | hope that Indian O2C brands carry forward the growth momentum Se et ee ee (ele) Noreenee Tt) India's online commerce market is growing at a rapid pace. Currently, it stands at US$ 70B Gea eee een a aia aa ee sd Users and 500M+ online shoppers by FY30. The growing e-commerce sector is positively ee ee eet nie te ee etd spending and rising e-commerce penetration, the D2C market is poised to grow strongly over the coming 5 years. With the growth of eCommerce, the total D2C market (revenues of all D2C brands combined across all channels, online + offine) is expected to reach ~US$ 608 in FY27 from the current number of US$ 128 in FY22, in core D2C prominent categories (Beauty De ee a Me ome a) “Muttiple success stories have been created inthis space, with several D2C brands crossing ede eee a Rete eso ny ee ee ee positioning. This report aims to provide various industry stakeholders, including business leaders, an overall perspective on the market. The repor reflects our perspectives as of June 2022. The situation is evolving rapidly, and some expected scenarios might have slight Variations. We look forward to exchanging notes and continuing the discussion with ur partners Conc PU TANDON Managing Partner and Co-Founder, Praxis Global Alliance.Term Description egrage S a4 q o i) [o} aa (b)oer HIGHLIGHT Of The Indian D2C Market ~12B eA Poteet a eter ~5B ~15% et rma Prat) Se eT i ede oe Pe tt teers cee ee ptr oa ae ars eee cee eee ecene eee Ea area Eset ty ca ea) =2 D2C market size’, FY27 (USS) ~22B Delete aA)ey < x Wu Fs E > et =< (ca » Indias expected tobe the thir largest economy by 2030 with ~20%of population ving urban areas; India tohave 38+ ‘smartphone users andintemet users and ~500M online shoppers by 2030, » E-commerce penetration in Indias ~B%In FY22 ands projected to be ~15% by FY27 »»D2C market in india poised to be USS 60B (FY27).We have considered seven categories of D2C market for calculating the market ‘sizein Inia: Personal care, pparel and footwear, grocery and gourmet, ewely, electronic, heath care, home décor, household supplies and ‘arden » Total DOC market in india us currently USS 5B andis expected tobe US$ 228 by FY27. We have considered seven categories of DOC market fr calculating the market sizein India: Personal care apparel and foctwear, grocery and gourme, owe, electronics, healthcare, home décor, household supplies ad garden » Incumbent player (tke Unilever, Marco, Tata Consumer Products, ITC) are ether acquiring prominent D2C brands or choosing the ‘organic route of launching their own brands anline and buling ther mn D2C platforms » Tech barriers across the journey have reduced as building blocks are available across the cect online channel (D0C) journey » D2C brands are scaling rapidly. Brands are reaching INR 100Cr (-USS 13M) milestone in 3-5 years aftr launch > Aglity and GTM speed, atractve packaging, strong digital marketing capabilities, sing AOV and attractive gross margins ae the key ‘allwinds forthe D2C brands > Wehave devise a framework to assess Ease of Market Entry in D2C space, Apparel and footwearisthe highest scoring category folowed by personal care » More than 85% consumer survey respondents pete online channels across all categories, Across each category, atleast 45% respondents ‘make monthly purchases, » B2C brands need to werk on product innovation, manufacturing / sourcing strategy, oftine stibution, brand and customer ‘acquisition strategy and unit economies to win in today’s D2C market CrBshiprocket my TRADITIONAL BRANDS Context: Traditional brands follow a sequential multi-tier distribution structure, resulting in lower margins, slow movement of goods and high time-to-market “eons tine Crane! 2 - @ & & 6B Log OP ‘Brand Website (a cect ee i ia ii. United coves to igh caperin| —— = se ou EEE a2 Soe = Set PiesBshiprocket D2c BRANDS Conte) to high go-to-market speed and greater control over CX ADVANTAGES. a # cretercontlover Enables engagemant ‘customer ta are sarepentpurchase ‘experince = Brand website platform “Drectontinechonnel) (a 2C brand bypasses the conventional method of multiple supply chain partners leadingioe C7] eae Context: DOC (Direct Online Channel) represents total brand sales (D2C brands + traditional Set uc auch ey eos ec) Penni eet cg ey in Oo Pc oe re (Comal pone pons ceeoer Ca ° imption growth e D2C opportunity in India e D2C category deep dives e Winning strategies for D2C brands and the path ahead e Case studies on successful D2C playersBshiprocket is the world's third largest economy by PPP and is likely to be the third largest basis of nominal GDP by 2030 Indias the third largest economy India's GDP in 2021 is ~US$ 3T andis expected to be bby PPP after China and US “US$ 6.6T by 2030, growing at a CAGR of 8.5% ‘co (90) Evolution of nda's GOP during 2021-30 and top 10 2024, USS ‘nations by nominal GDP during 2021 usst Sc) MF pats, ar, Statens, Sandy ech PrBshiprocket cu Consumer spending is expected to be US$ 4T+ by 2030, growing at a CAGR of ~10%; this is. owing toa massive domestic consumer expenditure and consumption market ‘Consumer spending is rising faster than GDP with growth in GDP per capita Income growth, urbanization, evolving attitudes are the ‘major reasons forthe increase in consumer spending cron can aren Fra ussa2r usszar = Consumer Spondingper 9231210 «288K Sioa (058) > Income growth ~GOP pe cata growing at 9 AGR 3.5% (2017-2021), leo to greater dapossieineames > Inreaseinurbanization ate inincia +9)/2090. 40nd eran + Rater cig cocunpon nfl gown 8.3 tne by 2030 concn 3 Stmestnuten > Technoogieal novation n consumer products higher internet penetration » Strong loca consumer ecosystem and evolving consumer attitudes ‘teri rd Geet Zt 77th open 2090 an wee 3m Somerton > Inreasng female workore participation > Favorable demographics + sing soe raj wen amaten ge 3n2030 erat hn Ching, 4 mthaS) > Roguatery supper + Poems Amnon ni > Conse spending on ceteris food, housing apparel tenaport end ‘communication, persona care expects inereaseby -2X by 2030Bshiprocket Large middle class (78% in 2030 from 62% in 2021) & 40% urban population are the key demographic drivers of the higher domestic consumption Population will move up the income strata ~18% trom iow income Leads to higher domestic, = 2.09%. tina's population wi be ving nurton 40% areas by the end of this decade consumption Imcome-wispoputetionspit Detzon_ CAG ‘howsvods| roused 207107 . 7 ~ =" ™ * roan * amy 9 Teal mide Tunis sop mma ‘roan andra population aon © 20030 a0 ot ‘2001 20m 2001 2030 muse manBshiprocket ci India to have 1.3B+ smartphone users and internet users and ~500M online shoppers by 2030 ‘Smartphone users were ~750M in 2021 and are expected to be 1.3B+ by 2030 Intemet users were ~830M+ in 2021 and are expected to be ~1.3B by 2030 Online shoppers were ~190M in 2021 and are expected to be ~500M by 2030 eet oy Ce PaBshiprocket India has the third largest retail market in the world and is projected to be ~USS 1.9T by 2030, growing at CAGR of 10% India has the third largest retall market in the world; Retail industry in india is expected to be ‘etall spending per capita in Indiais only ~USS 590 USS 1.9T+ by 2030 Retail Market Size Indian Retail Market Size 2024,USSB SSB = 908cn Bstiprocket COMMERCE PENETRATION PROJECTION E-commerce penetration in India is ~8% in FY22 and is projected to be ~15% by FY27 2 = e se - % SE on QE ao [J 20-22 = ” Brdo Musa BUK ‘Michie ME Canada Indian e-commerce penetration 66fee AGENDA @ — Indian consumption growth aS ae) © D2C category deep dives e Winning strategies for D2C brands and the path ahead a _ Case studies on successful D2C playersBshiprocket qm ECOSYSTEM OF D2C SYSTEM Ahost of D2C enablers are available in the market leading to low entry barriers in starting aD2C brand | ew ‘Sista Srtaneonn Scan scan Prasaneesiced Pe eee eS D2C brands are witnessing rapid growth and scale in India; several brands have crossed CEC ed eee Rete Te DS oh a ener cus ® ® ®©© @E an) Ercetcd toy Cec orto on a re peOlqay Bieler: Pea eg eens = aD =Shiprocket = it D2C OPPORTUNITY IN INDIA D2C landscape is evolving rapidly in India [1/2] YOIIA probate ime Dinshor oomov@nes retro Pa ED riwois B8Gy coven Lol fig, MAMIE Lasyln He BD ee DW oa SH] OM home fnsigy QB eee a es os & — srisri a Cr]Bshiprocket (ca D2¢ OPPORTUNITY IN INDIA D2C landscape is evolving rapidly in India [2/2] tt ey oie Qos 8 ee ase (=) Br owe] eee wo eH =e cons [ich wine ane sie Omen Orr uae AMA ue vey, mower WOW” se BP care wz a “eee mr]Bshiprocket cm D2c AND DOG MARKET SIZE D2C marketis a ~USS 12B opportunity in FY22 for key seven categories; DOC market across 7 product categories is ~USS 5B in FY22 Breakup of consumer spending market to direct onfine channel market D2C Market Size FY226.% FY22E.% i = 22cm Zam pee ‘oe — oat Eeommerce 626 Reiman Cagoree _DrestOnine acter ‘perang sone ‘Moma "Econmercenrat” chanetanst ‘he an got jon cre,Bshiprocket D2c AND DOG MARKET SIZE em D2C in Indiais expected to be ~US$ GOB in FY27 across seven key product categories growing ata CAGR of 38% Direct online channel (DOC) is growing fastest Direct online channel (D0C) markets expected to reach US$ 228 by FY27, growing at a CAGR of 38% forD2¢ players. zc Market Sie ‘cron Direct nln chanel market sz (for both tradttonal and 02C brands) iste pre uses © 30% .Bshiprocket (ca D2¢ AND DOG MARKET SIZE DEEP-DIVE Grocery and gourmet, apparel and footwear, and personal care are likely to be the largest growing D2C / DOC categories in India for the next 5 years (Grocery and gourmet hols the largest share in D2 Apparel and footwear holds the largest share in direct online market followed by apparel and footwear category channel market followed by grocery and gourmet category CcotegoneWiseb20 Mata Sise AOR Categorias DrectOnine Chanel Murat Sie CAR ‘en ane ‘sane ane omer ssa a0 — a —— s — — — =a aed = pom enmcermone sore = Beectstannenee a 0% = = am ner uss 0 — = = - en . = on a ce — sosBstimoct @ D2C AND DOG MARKET SPLIT D2C brands (~USS$ 2.5B) form ~55% of the total DOC market (~US$ 4.5B); DOC, marketplace and offline channels constitute ~21%, ~64% and ~15% respectively in total D2C market ‘on rir hati compar esr. aes yh DC abiding ‘SSitaSunencomeran wth 030 om anno oon soir raraparart N= 200" hay eps Scry rans a anea OPPORTUNITIES FOR THE D2C BRANDS eur) peu Evy Opportunity for D2C Brands’ Growth in India ed CO crenata eee) oar ier ce ee eect eed Nunc) coe enna eer ue [eet eemeeiaea er oo story and shift in consumer Pads (ear tacle sr) See eed ieee eee eae eel pectin eraeg eed See ee eee ee) ere reer Serer ens eer anos Coren poe Meta Ru aged Tdi) ero a Se ec Trees enero ee eeey eaeBshiprocket cm CONSUMER SURVEY Indian consumers are increasingly buying online Froqueney ot Onn Purchase ‘Soyer tags N= 825, Ea we 3 180 90 00 6 & We ft rcayand pee, vn em uate cd ams Nutr igh rt cin orgBshiprocket CONSUMER SURVEY Indian consumers also increasingly prefer to buy directly from brand websites ‘Channel prterence for purchasing D2¢ products Noe Wena [ahr ete ome eon on Same in Synch tis Nant igh tw vod orgaBshiprocket (ca CONSUMER ENGAGEMENT D2C brands have mastered customer engagement, managing product visibility and driving customer experience which is leading to repeat purchase eka a » Sumner gy ny patenting Commu » Conmigo bate > cuareaauten ey ny setemanca ming > commas peetane > Nese wan tga nach doe > windy cata B20 bane ee 43000 vu GuU VOO © row postenig » Nou 02 wade he bet poston pam: es Keyword spectiaton (rene) »Shotwemctes a ononrgea 57 ws Si seve tow Poripatonsmenpace sates: > Mat ucidventipas ia mcs er 3 ‘Shovemenen sara Responsiveness | Panel esmcearotoantrereies Customer foebock ins TSS We Retention pact ten oneal Loyety > snl ar bn-ame eeticed EASE OF MARKET ENTRY FRAMEWORK BO nei aaLCE RC Era text EE PM Oe eee enon Cue cc ated Ease of Market Entry Framework (Score to be Function of 6 Factors) @) eet ened poi) Eres oe ered ( Seer ey Pte ret yeas) ety co ci ® S oe caer See Eiceel Re eee ea reese beat ce mien eer rere oe ey @) Cee ed Seed oer eee eed ri Seed boriseeteny pone eed ee CS Cail rene See Erte) ered ated Se etieneny es]Bshiprocker (ca EASE OF MARKET ENTRY SCORE Apparel and footwear has the highest ease of market entry score followed by personal care category aco Market Entry F122 Seawaute!3000n 2! 10000 eg Sore=231 acti al or ce Huta Stopes nd arenBstiprocket EASE OF MARKET ENTRY SCORE Personal care, apparel and footwear and grocery and gourmet are the most attractive D2C categories Ease of Market Entry Score with respect to Direct Online Channel Penetration w= P22 5 A Hane e607 @ 2 a cyan ram 5 : 20 z e ? sem 08 te 83 i e g & mw ieee estore 1218 oma 27 DOC penetration (DOC market as a percentage of e-commerce market) Q wien etc cnBshiprocket TECH ENABLERS Tech barriers across the DOC sales journey have reduced as several building blocks are available in the market Examples of Tools Maneting 8 oman CTR engagement Improverent contort scl stg cham ‘ogaton sre ang Ratna > Mee peaorcn scale > aerpepovec eos mene ee > Oommen BT getmtecicaten a Ashopity Camm GBvovee erence WKS ome Sec Sean mete rah Peymartmdes ie BL, eu unt ‘ide. can abarderenteacton >> png tana > fame neuen owen > Paar tn > Raat chet > Patten tbcencehy een Aozrpay instamoye PSI) Pay Preys Woon cabin PEE smpt Oames (a Lees ‘tame, onirg ep TO NOR rect sage ec ees, (sins wretos > casemate, > ohhgacon natunty > Ueno > Aaimasanticndvons (Bshiprocar Spon] Fa Treanor SREY cart LE, ote a Desk @ oyestes psnioe Ce aa Eight key areas D2C brands are focusing upon to win in today's consumer market a ne ae Le g Marketing Se SS et eet oa cree oer Petpet ies Sees eile oes eet oe coe ener) restate Sey peered ees Sees Lpereaesecrio C So » « eon! ie eae i eeu ) Se ees ead Sy ae Hoch ee ea Boe a See Premera Bsn tt eed etd pi ey ee ERERTEOS) Sl ae eet Sean ee ccs) ee ene cert ere ee cet nee ee ee ay Pa eet ute ltgethhsBshiprocker (ca SUPPLY AND DEMAND VARIATION Delhi, Bangalore and Mumbai are the major supply and demand hubs for most of the D2C players across categories ‘Shipment Source ‘Shipment Destination By Value By Value Increasing dean es emt: On 10 riBshiprocket (ca SOURCES AND DEMAND CENTERS ‘Top sources and demand centers across categories <7) et Sees em = me severe aan Se oe Sal cory ened seem aatiest—t é 5708 sxc Santen | Stems 807 Siaaciooweecaicne Eee | See So OO Jewellery 824 > near) >owr > vents Gh} Hlectrones 2a — yom thee We Hoatncare 97 > ar ent Soman Se Feo oie innit in tenet 0 > ent > eae > roman bn >onShiprocket (cn) ir INCUMBENT PLAYERS’ STRATEGIES Incumbent players are either acquiring prominent D2C brands or choosing the organic route of launching their own brands online and building their own D2C platforms \rurbant ployer enter ial spe Malang \reumbont player scclertog hl cota! raetoraton thrown bande one or bull tht own D2C lator ty bulngscall citar bande as 3 Seniesa ome) a 2 ay aS See fn °» Scaling up th D2C weperiance fer bast branes fe Lard, i | fe eet eyecare =e = Mw A 2 ceeaa na Sabet ceaam oa «pa + © as Mn fort nfl a marigg —”2mbaituetie ines stcndze Es,Bshiprocket HOUSE OF BRANDS House of brands are helping D2C brands scale up faster and provide an avenue for exit to founders House of brands help D2C brands acquire and The Model Global Stories Top house of brands inindia help scale 02C brands faster > BuyetheD2C fone rand andi thom oe ranting, Iatetpace pasion costentraen anata ‘sporsionandterrelogi sip > Reta amin-VC PE wounds the D2C brenden Seater HS ee estuesiney precowmense eh soe i eventiow fi) 10club Ucscalo GISAT pewerhousee > Kay sucess D2C rans creting ha roe >E-, MeGsosGlare aun mmeeath te em Process followed by house of brands in Evaluation Due Diligence Payment and ‘Onboarding Integration and Growth brand acquisition » Buyer house tran] evens the bare > Ses rugh vation > Sepstenetinert > Chocesevn andr rome apes ty stron > Dasusons wen en-estara users >» Pops oldoounets >> eegatenwentbepatom > Bier use and expands presence > Crates afetanads acer rd ight shred anvnsde nit format ptt hgShiprocket (cn) ir success FACTORS D2C have competitive moats such as agility, strong understanding of e-commerce algorithms and ign g>-tomanat spud cnn ouncrsandcrna endear > Fargo trv tedslon barca te sea ndentyeg ndlsrching hn ou segments rmaralctngeitespactagng medion shg-daun ces nrcurtet rade Saban tc whence) + Premmprcin withiaher magn ents card ren nstetnger ess > Peta ee condandctgn re comaceasey cntercehos 170M delectraech vey heures erento en cara nd at rexgorgiochaeinnen 23 » Seng maratrg apsltes note cicet ring er gee cnmace sae a spite opt posit onotneg ine sehen ener bry hanced Hae sens haottntomsomatpxtegemuesinhe tinctane neuter cant cet O20 eA >) Oninee st asmalahre torr ses lor neunbenbrads fie Sets acerca felch een somsters puhagra. leea CHALLENGES Low customer loyalty, high marketing costs and high RTO rate are some of the major challenges bole bose cy ee eeu or ry Neen Nica VW ilibes bese Re ee See ee eed See ae Fetes epemcreaperiereny panes foci oa See eae pee pipeletetg! pment ny focaccia ney See eee ee ee ed Personalization and product Pac) Ce et Cee Ae SE es Seated See trsemetcarad “eee Peete coer Tag pra TT Ser ees en Se ee Pocono neu eten) Tee ate [eee riaternerrecnn es ee as caeuen) Cae eed FEARBshiprocket (ca US D2c MARKET CASE STUDY D2C players have successfully created large outcomes across categories; growthis led by unique business model with innovative products and appealing marketing strategies -comMarket Size E-comPenetiation 02CE-com Sales {#D2¢ Unieoms USS 9498 (2021) 14% USS 1298 (2021E) 15+ Product differentiation with personalization / subscription model and great marketing strategies aided D2C brands in succeeding Product Category Brand Founcling Year USP /Key Leamings » Opa vera inepation es oposed to hres ton -onned eee sippy ch © Eyewoor WARBY PARKER 2010 "Desired te cum hanes hee erating esa ees | Calsberteth commun ifverces(:Pmeungwarhy camosin > seed mbaclon mel ersonalcare (2) souarenwecue 2011 » Gretmatating-erpisinon humour aneauentiy stores eget store Stunetonvantcuonr Hrauviones:maidso > aan crs ore ‘eiee tntpoccae eyewear @ 2010 > Persanalzd cloning on subscription bass stron Fix > Ue gta cane soareiouackesamer petsonces | eg gamete taming erty , > Ard aie herr" nn ies edn et maou scone ph Personaicare G/ossier. ue > Foisdon ny one vant rodel Ea rrkes cry masom Uke Rcontenes > Fooues rary on02¢ caraBshiprocket cm GLOBAL COMPARISON China has the largest e-commerce market globally; increase in online shoppers, digital penetration, availability of tech solutions are the major growth drivers globally Rising number of online shoppers, increase in digital ‘China has the largest e-commerce market with 1% D2C. SRS SGT Penetration followed by US with 14% D2C penetration. attitude are the key growth drivers Global e-commerce market on fe 20 USS eunhaeetaetent tet ten A eS > Inreasing smartphone and ital penetration » Wat doveope gta payment system =e » Evolving consumer behavior > Canmmanesand et ucts Noun pt >a oem pee _ >> Alby of tach souions and enablers hav optinzedthe lationship wth tbe an ue aABA oem ‘ustome trough automation processes nd suit salabitynelume and a=. ‘ales chante sce » wow ~ > Cova rengthned th oppetunitsfrD2C brands as mare consumers re sntchingorine stopingPT AGENDA @ — Indian consumption growth e D2C opportunity in India ° eet RU e Winning strategies for D2C brands and the path ahead : Per se¥s Uo nels Rtiocerscssit I PYLON oN -10Bshiprocket CATEGORY DEEP DIVE We have covered the following seven categories for deep-dive in the D2C market oF 6 a oo & We Penanicae rpceryont_—= aparently ‘evoce Heat ‘oumer eos ceerentme sere 7 ae 1 @ “« 2 2 (C— cattedindaae tpn) ( ait se snd gouth ) oactrende ) Carma (( Nenaaceioomerana(o2cl spits») ( taentinesmensandioymesors ») ( oy vrs ) ‘Suscosfetator02C ondeShiprocket (cn) ir PERSONAL CARE > D2C LANDSCAPE D2C personal care landscape is evolving rapidly in India [a sexanarr] ow rmamaeocn, sim) cathe @ plem Avé — (MABtters © Letsshave) ERA = Shes Yilvah corepsar lane’ pm awnariRe’ ramus 290808 AAT @ es ak) 92 beg no NB > @ Phi tex © —_ femss oFOM Greeaberry Eegvon| ximinicx stor A Ox fonts amie fy HB BD | ptort vec eo EARTHO GULNARE jy ‘mantra (amet) reregut Minimise OTT vAUNT ih eo (© Seroptonead Porras oth Tish Cr]Bshiprocket PERSONAL CARE > MARKET SIZE Personal care D2C market size is estimated to be ~USS 2B in FY22 and is expected to be ~ USS 7B in FY27, growing at a CAGR of 36% Of the total ~USS 188 market, 9% sales are through Personal care D2C markets ~US$ 2Bin FY22 e pera eneaanteaioe ae DO Personal care 02C market ‘Break-up of total personal care market to direct a UssB ‘online channel market w F226, force x vussie28 ussue geese “etceonee) ior PERSONAL CARE > INVESTMENTS COM acute ced Raa] Cre at an ee cy = = © ‘Tottunding SSM) 11 st 2 31 3 2 Lastfundingstage Ser SeresC Sores OT arsome, pre ites! G imcShiprocket (cn) ir PERSONAL CARE > KEY TRENDS Unique product offering with subscription and personalization models helped D2C brands in booming REC > SisegtinmastRees >> D2Cbrand offer premium products > Despusectectnsogy-ALVRY AR ee churete trate lower pce range en snd Vital eistonts Semanal > Casiomaed rds oryour sin; emumrands > Atpoweredchabots > Paraben tre proguts "Toryourtace tone xampie: Shampoo (1) wae |b Sauces bates ty mga Secon eae a se =aBshiprocket (ca PERSONAL CARE > SUBSCRIPTION AND PERSONALIZATION Premium offering with subscription and personalization models helped D2C brands in disrupting personal care segment s a z < & & 3 a i Sheva Face Wash ‘Colour Cosmetics ‘Skin Cream Hol Olt ‘Shampoo i os neg _o 3) 6 Y @ Ss | & F) osteo meunvnn —Harcrme Santa ducts i eeBshiprocket cu PERSONAL CARE > CONSUMER PERSPECTIVE 20% respondents’ prefer direct online channel; natural product offering, availability of wide range of products and customer reviews are the top 3 brand selection criteria £85% respondents! prefer purchasing online; 5%+ Natural herbal ingredients dive brand respondents make purchases atleast once amonth selection in the personal care space Respondents’ Purchase Behavior Brand selection criteria %N=387 %N=387 = satan ast iene | EEE EEE EEE EER eon Wn rarge strode edna oy beon ig pdt rm ts endian ot Sune eps prBshiprocket PERSONAL CARE > SUCCESS FACTORS New products, high margins and AOV and high online penetration are some of the key success. factors for D2C brands in personal care us en ada ® New innovative customized products launch Gross margins and AOV COntine penetration Natural herbal organic produets Premium products at afordable price range Baling trust Targeting niche communities =o ame em > 020 bands ae cating customer demand nen ods ne—right gels, under eye creams, vitamin Cseruns,yaluronle ‘ack rtd srum tc. > Avaabity of wieange of SKUs > Porsonalca product atgoy ensures high AQVS with goad gros margins angina between 60-70% »» Welenerated catego, losing geste eppenunty forD2C brands °» 020 brand a focussing on naturalingredonts which is wel: pereelved by css °» O20 bana premium product at chaser tes es canparedotadonlbrands °» 020 bana oe focusing on esu-oeted stncare proucsleedng gus tustand aster oat »» Porsonacarbrands aw sucestly targeting niche communities ited of masses “Tn cae sn ep nant aot ‘Suamarnergutom te acancyracene st “a ede capone irene near cneearaa Sete ecnceitten ne eeRonaeShiprocket (en) pr GROCERY AND GOURMET > D2e LANDSCAPE Grocery and gourmet: D2C landscape is evolving rapidly across all sub-categories Sasa om voc BR wiiieo venom o> a Seen weg PTS e~ Bitlis SO os» ao i ~ same QD MINIT Q riots REN @® SSID gs... : (om Blows Bm ws BA @ [news] aero & & Oo Om wer toe 8Bshiprocket (cm) GROCERY AND GOURMET > MARKET SIZE Grocery and gourmet D2C market size is estimated to be ~US$ 4B in FY22 and is projected to be ~USS 258, growing at a CAGR of 41% Of the total ~USS 5718 market, only 1% sales are Grocery and gourmet D2C market is -US$ 4B in FY22 RSS ae ECCT (Grocery and gourmet D2¢ market ‘Break-up of total grocery and gourmet market to ine” USS ‘rect onine channel market FYE omvson “pment Usss7oas usaBshiprocket cm OO ae ee ena ey Coa Jan'21 -Apr'22, USS M a = = te ae il reer ee em ae ee esBshiprocket GROCERY AND GOURMET > KEY TRENDS Natural, fresh and transparent product offering with subscription and customization models helped D2C brands in gai (ca Meat bande Leous, Fresh Heme cts hich ually mest srasestoos Day bande- County Daight, aiken promise rtual troche nacre rsets Courtry Deh has toad Mostf he meat brands - Liou, Fresh to Home, Tendereuts, Zapotesh lor ‘esto cook pats ‘Subserpton eda nso: ‘epeatcustorers end ghar purchase eanoy et beyondwater True Bomentsbayondater whol - Thefrath (Ea) Ketory Honest advertising ns Food ingredients end communication S Dey brands- Country Deoht, ——_yetoy ors the personalized a Matra prise nat ‘det plane ‘chara resisted pecs Cr]Bshiprocket cn GROCERY AND GOURMET > CONSUMER PERSPECTIVE 24% respondents’ prefer direct online channel; natural product offering, availability of wide range of products and customer reviews are the top 3 brand selection criter 165% respondents’ prefer purchasing online; ‘Availabilty of wide range of options and taste drive brand {6% respondents make dally purchases ‘section in grocery and gourmet space Respondents’ Purchase Behavior Brand selection itera %N=378 wen=s7s = Wiennordteoiomonine |ESEESEEE EEE E Yom at em tone |B oo Nouat/Orane medic - io consent ray funy | Ww A ON = ie ewnarpacadng WEN! aon omer end av baa tig rcs ti or awwBshiprocket (ca GROCERY AND GOURMET > SUCCESS FACTORS High margins and AOV, high online market potential and better customer buying experience are some of the key success factors for D2C brands a maging >SmanIAAONAGnomsce Cer ed a > Magescin sho #0 50% conan steers Baers pahapstood = FE sunseptonnael > hpatcntona tier pm ony ag Natal fresh -cuaty > pews tm tet pee HK ronet > itt rae onto coakoptons eee eerteten et ee lonevenary ka > carat ray ttn oan rigorous testing > Uso edvenced techniques such TF to martin high tana e qusty cote pants sup hainShiprocket (cn it APPAREL AND FOOTWEAR > D2G LANDSCAPE Apparel and footwear: D2C landscape is evolving rapidly across all sub-categories ee WW oor GG cm nc Le. oot ME Baw = 8) wan Oege REFASH vicars OD rD 2s... -- srorsie pasoue 1 f omme HE BELAMO @ieutr omnes |B. ig coe a aD oe mmc — @ HONIOW le 5a RAPIOALE OS ta sone @rssy J mvc am (27) @ whee cesBshiprocket cm APPAREL AND FOOTWEAR > MARKET SIZE Apparel and footwear D2C market size is estimated to be ~US$ 3B in FY22 ands projected to be ~USS 14B, growing at a CAGR of 35% Of the total -USS 818 market, 15% sales are through and footwear D2C market size ls ~USS 3B in FY22 a ‘e-commerce of which ~15% sales are DOC ‘Apparel and Footwear D2¢ Market ‘Break-up of total apparel and footwear market ona USB ‘to Direct online channel market, lag FY22E.%Cy SU APPAREL AND FOOTWEAR > INV COC eure Rael] Ceara ene Tottundng SSM) 980 Lastfundingstage Series! Scies 8 no wer SN] wis SINT ‘lub se roars Pe reShiprocket (cn) ir PERSONAL CARE > KEY TRENDS Quirky latest designs, backed by celebrity fashion choices helped D2C brands to stand out a bunmer . pewards Qubo go eit) ET Dapper Shoes ccaaaaaomanaa oe ‘esesedsietes Co. “urs nban ree BewaKeer : : ; ao : awe] Pi oh Cr]Bshiprocket cn APPAREL AND FOOTWEAR > CONSUMER PERSPECTIVE 12% respondents’ prefer direct online channel; spread of product range and customer reviews influence purchase decisions in apparel and footwear category '80%¢ respondents’ prefer purchasing online; ‘Availabilty of wide range of options, sizes and customer reviews .48%+ respondents make purchases at least once amonth are the top 3 brand selection criteria Respondents’ Purchase Behavior Brand selection extern, %N=583 SaN= 58S . =e ideragectoptonsvlabe |i shiek ii ee ihe so% commen SPREE RRR A tanya aes /iawnere oh ie te eae 40% em Seneoasasa REE ERE 0% = ae Onsancotoietonopton nae tated at 20 Hom vemushaprouestom hs renders whienew 9 i 20% Anerstosservee teint 23% ‘mavonteatoncernene tii 18%Bshiprocket (ca APPAREL AND FOOTWEAR > SUCCESS FACTORS High margins and AOV, regular stock updation and data driven offering are some of the key success factors for D2C brands Margins and AOV > Appr oeooesr rod calor ensues high ADV wlth good margins anne betcen 40-60% lar. > 02 wands update hel designs styles uly to keoptheculorers engaged ato cress ep D_ Regular stock update eae 2c eran ofr tos econ euncod by data-van insights hcugh gra data arabs, arb ising treated om design opr! neh % 2 motivation es })_ beter customer experience Rae er Reeenipeysanendions watch nop nto nti mtn and ve oa ty SomuTSINgmame acteurs | GREERem Bshiprocket JEWELRY > D2e LANDSCAPE Jewelry: D2C landscape is evolving rapidly across all sub-categories; plethora of fine jewellery D2C brands can be seen entering personalization model I onNIza. Beets kardfcart TityS BTC BR . (SS evestone ake PB cusersox (p.ceteels) LLA’ aadyaa TIPSYELY Sarees $b MELORRA Ellipstore ia Gehna, @ AvGey Ge (0 corr Fon ttyBshiprocket (cm) JEWELLERY > MARKET SIZE Jewellery D2C market size is estimated to be ~USS 198M in FY22 andis projected to be ~ USS 692M, growing at a CAGR of 28% Of the total ~USS 828 market, only 2% sales are Jewellery D2C market sizeis “US$ 198M in FY22 ee Jowellry D2¢ Market Break-up oftotaljowellery market ge Usse ‘odlreot online channel market FYE cowten_ Ee meet woee) ior JEWELLERY > INVESTMENTS Come raat Een ocr) So “ot tuning (USE MI m 734 5 Last tuning stage Series sees ‘eves A a 2 an QanenonShiprocket a it JEWELLERY > KEY TRENDS New unique styles with personalization option is driving D2C brands success in jewellery space Ee ED 4D voylla rill a 5 o GIVA =“ 7? Se = A 4 ys (ecco a een 4 @ Sa ppabela -2 S.-i tas Ellipstore ee eet En motes red ey See Cr]Bshiprocket em JEWELLERY > SUCCESS FACTORS High AOVs, personalization model and efficient cataloguing and presentation aided D2C brands in succeeding nov GP cataloging and resentation ae 43 Stingpenseeionter {ashionjewelery © Tetontrand {Fashionable jewellery at % atordable prices xg Ofine presence for fine jewellery 8 pacbrana > Jews ensues high ADVS wth rss mags 25-30% » 2c tans showcase a wide range of products snc they have much ower Inventory costs > tegrated ete the 'vtal-ry-on a vsual Searhces ty on and swe or rove epters > Personalize enetery deine lke —namedneekacesin mutilelanguages, coupe ewelley, bith monty Aowers have gained alt action > oxime cannes ches ev eng fsb son eve, adr epporuntyferD2C bands > Bras ter authentication cetieats, hereby busing consumers ust »» D2C trans serena sina customer sopment by oferngfshonabe ower at dbl pices >> Customers vl Touch and fe experene while puctasingrejewalry and hence peer ating fine sores >» GaratLane ad Bluestone nave toe physical ouchponts kescigt ete cvsiomer purchasing eperence “RTO mathemati mn “Cumnesountn etn see ome" DaoShiprocket (cn) ir ELECTRONICS > D2C LANDSCAPE Electronics: D2C landscape is evolving rapidly across all sub-categories boat @noise f.ambrane @molife moorerse @aizmore DIZO A rowinowes Fwefsaurr (5 GIONEE TAGE PLAY ADCOM sminepaive’ Gjoous — Dpebble conekt Ao iM papa | Agsovnr avoz0 once Syxtur Bsseetaz DA Daily Objects 4, monawouz F Qvrsesey RAzGR (UB @oWwei @TIZUNBshiprocket ELECTRONICS > MARKET SIZE Electronics D2C market size is estimated to be ~USS 1B in FY22 and is projected to be ~USS 6B, growing at a CAGR of 40% Of the total ~USS 9B market, 43% sales are through Electronics D2C market size is ~US$ 1B inFY22 pb ronan Set eniee eeu Electronics D2C market Break-up of total electronics market enn USS18 ‘odirect onine channel market ~ FY22E% om —<— a HEE 2m ma ——< a rRShiprocket (cn) ir ELECTRONICS > KEY TRENDS D2C electronics space is expected to see sustained growth led by increased affordability, new form factors, increased health awareness and rising demand from tier 2+ markets lity rea > esata » Most snaps teas > Neworm tors > emased demantr » nese baa ae Sercms(-e7aweariaa —_” hae supped pevidng sratwocheswanteoth/ ——” gross ogedegiast in CY21 had ASP Lage semanas > Appeaingaesteteaisa ——® Maher repurchase > ao%nan wile > emsedaccesat tame tecrnepeaimovemens —” heyonerfrTWSane fremenoy inlowader payapremimtcrouiics —” ede-cormecepistms faved see rea areconperer ea rehednenbees: Demctngheatha mouincurre Snarorone > pueteotheating ‘ene “cinaeray” «~~ _ Seropemntgcme a »Bshiprocket cu ELECTRONICS > CONSUMER PERSPECTIVE 18% respondents’ prefer direct online channel; spread of product range and customer reviews, after sales service influence purchase decisions in electronics ‘0% respondent’ prefer purchating online; ~11% -Avalatty of wide range of options, customer eviews respondents make purchases atleast once a month aneater sales sarvice are the top brand selection teria Respondents Purchase Behavior rand sleton crt sNai89 enero = semen | ss seb om = tae covaartaon | vids osdsdsos oa oe a sna seston | Hb ‘tarpackagng | ho ao aon wvopenuangrrsucton ge ve armBshiprocket (ca ELECTRONICS > SUCCESS FACTORS Soaring demand, product innovation, tech-savvy population have helped D2C brands in succeeding in this product category ov > High AOva staring om INRSOO > Brands are constant een hesalves by updating / upgrading products © Product innovation 9 > Feeusingonceagne mor portable andiexble tech-enabled Neale an weatables > hh sever vender launching vices at moet pice pos, hearablescategnry sm the mus neaded rice coacton lag a neeased affordability ‘Affordable price > Tech cavy young population ling to adopt inovaive and premium predicts) such as TWS cares, Large tech-savvy young population me ste tech-esve pede & > Work Fom ha cates hs aerated the demand forhearbles su) Mereased demand > Iressa avay of AG and Wr netwe fon tesco warble devins > Therpidvantomaten gh steaming sense Higher repurchase frequency > Oveto regular expansion / upgradation o features anuse-coses ‘Online penetration > Wet pnaated category leno rete oppatnty fer D2C brandsShiprocket (cn) ir HEALTH CARE > D2@ LANDSCAPE Health care: D2C landscape is evolving rapidly across all food supplements category a okivagy OZIVO [ERRBM§ oxurrasay “andMe Trwnativ. —Fasraur EGS teat BENE seafarers cuREVEDA” gah Get; = mojocare mar, ome A Fy Go age AZANI ite Herb Diet ale beatt> os ee @p.Odie ®@accusue MGOQi HeaLTHJsense’ hesley papa fushti rRBshiprocket HEALTH CARE > MARKET SIZE Health care D2C market size is estimated to be US$ 0.5B in FY22 andis projected to be ~US$ 3B, growing at a CAGR of 43% Of the total ~USS 108 market, 11% sales are Health care D2C market size is ~USS 0.58 in FY22 ane SeTSICe AIR eee ee DO Heattn Care D2 Market Break-up of total Health care market to ona Use ‘rect onine channel market Wi eaeey cm HEALTH CARE > KEY INVESTM Comeau Del ed I mieten Ce " Se? ee ee Tovtundngussm 170 oa 23 Last funding stage matrix @ Bm so QiBshiprocket HEALTH CARE > KEY TRENDS (ca Plant based, organic and herbal / ayurvedic nutritional supplements are gaining traction; brands are offering supplements in different formats like gummies, shots > commesmevio > Corman se moet, > Sapte sot > Alagestetcrsone ae ‘toeteteteene Estepirnonchomea! ‘oman Seovenaranr eter > Siteoiens aber eric ere ‘Ropenens seston Siete scot cuveeraeieee ocean one man ZIV cunevene” ‘SendenBshiprocket HEALTH CARE > CONSUMER PERSPECTIVE ~37% respondents’ prefer direct online channel; spread of product range and better packaging influence purchase decisions in health care category 80%t respondents’ prefer purchasing online; 75%+ respondents make purchases at least once a month Purchase Behavior %mNA130 comets ‘eu foie pca ‘Availabilty of wide range of options, better packaging and ‘customer loyalty are the top 3 brand selection criteria Brand selection extern, t= 130, Wie anectontns ava | CH EH a taroscgng | SHI LICH 00 Hoveanuingposicton CCHS eam CcusomerRevws | GCE omBShiprocket (cn) HEALTH CARE > SUCCESS FACTORS ‘Owing to the increased awareness of nutritional supplements, D2C brands are soaring in nutraceutical market >» Natal nto! upsets or preventive and proactive health are Producto no) > util pinata otings wit heath concomed purposes we $S__Anerativto pharma > Ooctasheestrpmeciingnimon senor aspatt hemp pesos > Demande immunity boostng sypplemontshes ncrased duo to COMID eating [2 Increased demand strong demand fornutseuteas ia nd Online penetration > Ovete COV, canaumeshave shied pi rom bik and mortart online purchasing sii Gotomarket speed > High goto market speed diven by capil tourdestrtonine and and easton ater 2G. Sales and distribution > Players such as HeathKart have crested comprehensive sles and distribution ecosystem wah physical stores ‘Papi hneteconemar at-cancurpo-CoksTheyhvesanadcanckreggan-omes | “Abt bani fpusrg on bul onn020, ‘Miter naglommesetlotestonelet barr! er eran acoreatheate Sivomesoetomae epreereranases Founder Sntamvee Four elt atlonBshiprocket (ca HOME DECOR, HOUSEHOLD SUPPLIES AND GARDEN > D2¢ LANDSCAPE Home décor, household supplies and garden: D2C landscape is evolving rapidly across all categories Loose furniture vetdaaer GENE Woodenst LemoNDEcoR’ —alydecor |) )F FURLENCO | pepperfry bluewud Décor and home improvement siehtcar J Memingom Gre @ jaKefit sieepyhead pepperfry WINK»NOD THE SLEEP Ih Company th Bikterioue ECO @Censta wirvanl ROU Pam & &, prakriti zr Weide? We (© Seto Cr]Bshiprocket cm HOME DECOR, HOUSEHOLD SUPPLIES AND GARDEN > MARKET SIZE Home décor, household supplies and garden D2C market size is estimated to be ~USS 1B in FY22 and is projected to be ~US$ 3B, growing at a CAGR of 35% Home décor, household supplies and garden Of the total -USS 278 market, 7% sales are: D2C market sizois ~USS 1B in FY22 through e-commerce of which ~19% sales are DOC. Home décor household supplies Break-up of total Home décor, household en ‘and garden D2C market ‘supplies and garden market to DOC market wy” UssB FY22E,% aw vussese uss190 sees “ceo = —ee Pee nee O RCC ean es gu CO rset EI Reread) fC od her} ee mee coe ee ca RPG soeeltShiprocket (en) pr HOME DECOR, HOUSEHOLD SUPPLIES AND GARDEN > KEY TRENDS Wider product assortment, indoor gardening, increased awareness and homes geared for WFH flexibility are key growth drives of décor, household supplies and garden > Corman a > kes aranratarbeomm > Peoks8hemtarben > Pao. ces Senos fase cat Brevi rer Shawna ‘osnguone sferortentonbe ec ‘Simdicnoinbores Seonccaorasoae erases nrarones eee * > tistcelntatarnwaykr > Samana sich occa > eran eszons Scdomercresdacse, > Somethin, eters a Seeaiasccmn Soccer tre! tenopeares sidireeberebeaen | tenses rorsngerenoonnd ¥ thet Women = Sgaco Bion cents wafent (am P— =|