Cee uta (BsShiprocket INDIA D2C REPRO N UE 728) ehfered Ci CLs) Me eee eee en ny but also given us insights into the rising focus of leading players in the digital space. We pea er er et eee een nd five years. For this to materialise, the new-age businesses will need to pivot to self-sustaining ee eee a eect cea tet titled INDIA D2C REPORT 2022, and would lke to thank them for their support on preparation Cee ee eee eee ecu yy ee enon ese ee eT een eae erie) Pome ee ee eke ae a insights shared in this report will help identify new opportunities and unlock the potential Bee eee Eee ee eG Eee SOMANY Chairman, Cl National MSME Council EUsroN Sou nae eT R)oe or) eee a ec ey Ce ee ete na eee eee ey 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 eee ee en eer ate es in the country. The report analyzes the e-commerce evolution journey in India so far, the ‘emerging collaboration models, key drivers and enablers ofthe D2C evolution and its massive See eee ee een em ec neces ‘end-consumer surveys and 25+ interviews with founders and co-founders across the D2C ‘ecosystem to identify the challenges and bottlenecks in greater Online-Ofline integration. The report also highlights that e-commerce penetration in india is ~8%in FY22 and is projected to ae eee aa Pee ea ee eee Ce) Pose a a ee a leading toa digitally activated and more collaborative online ecosystem, CEO & Co-Founder,ec Tt India's online commerce market is growing at a rapid pace. Currently, it stands at US$ 70B Gea eee cent a Sa ia ae eee sd Users and 500M+ online shoppers by FY30. The growing e-commerce sector is positively ee ee eet nie eee 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 + offline) is expected to reach ~US$ 608 in FY27 from the current number of US$ 128 in FY22, in core D2C prominent categories (Beauty Hygiene Personal Care, FMCG, Fashion, Consumer Electronics, Home Décor, Jewellery), Muttiple success stories have been created inthis space, with several D2C brands crossing Nemes ee eae eee esr ey ee ee eet 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 Vatiations. We look forward to exchanging notes and continuing the discussion with our See eer pene ARYAMAN TANDON Managing Partner and Co-Founder, Praxis Global Alliance.Term Description egrage S 4 4 o 7) [o} aa | (b)oer HIGHLIGHT Of The Indian D2C Market ~12B ee A Pete arte a tear ~5B ~15% DOC market size’, FY22 (USS) Fe eid ne oe Pe te te eerste ea tray oer ses Dae cece een racer eee essary eet ty ca ea) =7 D2C market size’, FY27 (USS) ~22B Pellet aA)Cee » D2C market in india is poised to be USS 608 (FY27).We have considered seven categories of D2C market for calculating the market ‘sizein Inia: Personal care, pparel and footwear, grocery and gourmet, jewelry, electronic, heath care, home décor, household supplies and ‘arden » Total DOC market in Indias curently USS 5B and is expected to be USS 228 by FY27. We have considered seven categories of DOC market for calculating the market size in India: Personal care, apparel and footwear, grocery and gourmet, jewelry, elactronics, healthcare, home décor, household supplies and 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 nn 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 after launch > Aglity and GTM speed, atractve packaging, strong distal marketing capabilities, sing AOV and attractive gross margins ae the key ‘allwinds forthe D2C brands » We have devise a framework to assess Ease of Market Entry in D2C space, Apparel and footwear isthe highest seating category falowed 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, fine distribution, brand and customer ‘acquisition strategy and unit economies to win in today’s D2C market Cr]Bshiprocket cm 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 “ection tine Chanel 2 - @ » & 6B Log OP ‘Brand Website (a nectar ee) i ia ii. United coves to igh caperin| ene = see ou EEE a2 Soe = Set PiesBshiprocket D2c BRANDS Conte) to high go-to-market speed and greater control over CX ADVANTAGES. a # romerconttover Enables engagemant ‘customer ta ard sarepentpurcase ‘experince = Brand website platform “Drectontinechonnel) (a 2C brand bypasses the conventional method of multiple supply chain partners leadingioe (cm eae Context: DOC (Direct Online Channel) represents total brand sales (D2C brands + traditional Ct uc auch ey Recs rc) Penni ae cg ey in Oo Pc oe re (Como Enel pons eeecreed 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 by PPP after China and US “US$ 6.6T by 2030, growing ata 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 cn 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 exits growing at 9 AGR 3.5% (2017-2021), leo to greater dapossieineames > Inreaseinurbanization rate inincia +9)/2090. 40nd eran + Rater cig cocunpon nfl gown 8.3 tne by 2030 concn 3 Stmestnuten > Techaoogieal novation consumer products higher internet penetration » Strong loca consumer ecosystem and evolving consumer attitudes ‘teri rd Get Zt 77th open 2090 an wee 3m Somerton > Inreasing female workore participation > Favorable demographics + sing soe rj wth amaten ge 3n2030 ert in Chins, A mthaS) > Roguater supper + Poems Amnon ni > Conse spnding on ceteris food, housing apparel tenaport end ‘communication, personal care expects lnerease by ~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 sLeads to higher domestic, = 109%. tina's population wilbe ving nurten 40% areas by the end of this decade consumption Imcome-wispoputetionspit Detzon_ CAG ‘howsvods| roused 207107 7 7 ~ = ™ * roan * amy Tamia Tunis sop mma ‘roan andra population aon © 20030 a0 oa ‘901 20m 2001 2030 muse maBshiprocket cm 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 Petey Cee iz i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 retail market in the world; Retail industry in india is expected to be ‘retail 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 = s se - % SE won i on If 200-22 = ” Bird Musa UK ‘Chine ME Canada Indian e-commerce penetration 6fees AGENDA @ Indian consumption growth ortunity in India 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 |e ‘Sista Sprtaneonn Scan scan Panesioe eae Dd eae Ten ee ea eee oe ee tees) TEC ed eee Rete te DRO Ee eee a Cen ec ac ® ®© ©© @E and brcetced tal Ces forty oie wl yl A ak gh OWED a Cre er i a o—} eens = aD =Shiprocket = it D2¢ OPPORTUNITY IN INDIA D2C landscape is evolving rapidly in India [1/2] YA probate 8 imc Dinshor omor@nes metros Pa rinwoss B8Gy coven Lol fig, MANE Lasylln THe Be DW oa SHO] OM SS a frstgy QQ eee ons MN ee as & — srisri a Cr]Bshiprocket (ca D2¢ OPPORTUNITY IN INDIA D2C landscape is evolving rapidly in India [2/2] tt ey eo Qos © ee ase (i =) Be owe] eee wo He as conwss [ich wtene ane sie Ot meme orr aa AMA ue see, sewer WOW” se BB care wz aa “eee mr]Bshiprocket ca D2¢ AND DOG MARKET SIZE D2C marketis a ~USS 12B opportunity in FY22 for key seven categories; DOC market across 7 product categories is ~USS 5Bin FY22 Breakup of consumer spending market to direct onfine channel market D2C Market Size FY226.% FY22E.% ar = 22cm Sm a oe oneumer oat Esommarce 626 Reiman Cagoree _DrestOnine acter ‘perang sone ‘Moma "Econmercenrat” chanetanst ‘he an got jon cre,Bshiprocket D2c AND DOG MARKET SIZE co D2C in Indiais expected to be ~US$ GOB in FY27 across seven key product categories growing ata CAGR of 38% Direct online channel (D0) 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 sharein 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 compete sss a0 — a ——— = — — — | oe = (om enmeenmonensorte = ee a 0% a = am ner uss 0 — = = - en = oon = ce == son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 atic ei src asc yh DC Nabhan tl ‘SSitaSunencomeran wth 030 om anno oon soir raraparart N= 200" hay eps Scry rans a aney OPPORTUNITIES FOR THE D2C BRANDS eur c gt) peu E Ly Opportunity for D2C Brands’ Growth in India <7.) Improving digital penetration and Cerrone eee) roar iets ce eect eed Ne unc) coe poceneen ent eared nee eemaneseeey roneeerernnea) ce SEU nee PICs (7 eanohtalec sr) See ered ieee eee eae Sell echt eraeg eed See ee eee ee) aerate reer Setar ens eer actos Cremeans co Meta Ranged Renae) ero aS Se ec iret ts eee eee) eeeBshiprocket ca CONSUMER SURVEY Indian consumers are increasingly buying online Froqueney ot Onn Purchase ‘Soyer tags N= 825, Ea me 3 190 0 00 * 6 & We ft caput pee, sn em ute 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 Weenie [ eheniinin mete 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 keting ae » miner aaiten gy ny patenting Commu » Conmigo bute » cuore anuiten yn setemnca ming _ > canmystngdpeetane >No wan tga neh don > windstar 2 bana ee 43000 vu G Guu VOO Oo row postening » Mou 02 wade habe poston pam es Keyword spectiaton (rere) »shotwemcttes a ononrgea7 ws Si swe tow Parispatons i raienpace sates: > Mat usidveatiasi ab mcs ™ ‘Shovemenen sara Respersiveness | Panel esmcarotoatmereics Customer foebock ins pee eee eee) We Retention prt ten ——— Loyety > snl oar en-ae eetioe EASE OF MARKET ENTRY FRAMEWORK Beira CER Ec tek te eM Oe en on Crue cc acted Ceo o cE CE aa aE ae @) Cee eed pee) EHearis oy erent Co Seer ry pte ro yea) eed cos at ® = an caer See Eiceael ee eee eee reeset baat ce mitt a area eres Cee ee See for eee ed rd Seed Screened pone Std oe So Cail renee See Ertan) Seed cated Setieeen) esa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 acti al or co Huta Supper 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 Aj Hane e607 e 2 a cyan ram 5 : 20 z e ? som 08 te 83 i e g & mw eerste cates Boston 1218 oma 27 DOC penetration (DOC market as a percentage of e-commerce market) Q ween eters 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 aor CTR engagement Ioroverent cnt scl stg cham ‘ogaton remains > Ranges 2 Mespemercnscalenda > sept pore eos mente ee 2 Oommen BT petnntescicasnee Ashopity — Cemma — GBvoves erence WKS ome Sec Sean mete rah Poymer nodes ic BL eu ups ‘ide. can abarerenteaton >> png tennant > fame neuen owen > Parent >> Rate chet > fatten tbcencehey cence Aozrpay instamoye PSI) Pay Preys Wooton cahine Paw Esmpt Ome (a Pees ‘tae Onno 70 NOR redictn sage edb ees, (sins rate > cutee agate, > ohbgacow aunty > Ueno > Amster (Bshiprocar S pe] ee Fa Treanor SEY cart LE, ote a Desk oystersiced aa SP OE oe era Cun Marc eu EL cd a ne ae Le oo) See Sse et a re oer Petipa ceteris ies Sees Sleeps oes eet oe oe eee etree) reste et ey peered ener Sees parame « co » « Booed ie od Secu > Sd etary aa Sey = Hota eee eee a Se eieeeee Premera Bassett See ed eto Hi ey ea EERE) Sl Ganges ety een ee ra] Ce eee cere ere ee cet eee ee eee ay PS eet ute Litgethihy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 come emt: On 10 ri —_—oBshiprocket (ca SOURCES AND DEMAND CENTERS ‘Top sources and demand centers across categories aeneeneee oe Sel conay end seman aiatis—t—t é 5708 sxc Santen | hemes 807 Siaaciooaoweecaicne Eee | Soe” So OO Jewellery e24 > sane arom) ow > vette oh tectonics 2a — vom thee We Hoatncare 97 >a ent Sonne Se pS oie innit Sin tent al > ent oa coe > nomtnnbmce >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 \rourbant ployer entering te ial ape Malang \reubont player scolertog hl cgtal raetoration throw bande one or bull tnt own D2 plore ty bulngscall citar bande es 3 Seeing oes) a 2 ay aS SS 1a 4 °» Scaling up th D2C wepariance fer bast brands fe Laka, i | fe ee eyecare a = Mw A 2 ceetaanny Sateen ae «pa + © am Mn for nfl a marigg —”2mbiruedine incest usndze 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 brand andi thm te raring, Iaetpac pias costar ara ‘sparen andtecrrelogi sip > Rete amin-VC PE wounds the D2C render Seceteted HS ee ctuesinay precowmense mee i eventiow fi) 10club Ucscalo GISAT pewerhousee > Kay ices D2C rans ace ha orHoe 9E-, MeGsodGiare aug mmaeath te co Process followed by house of brands in Evaluation Due Diligence Payment and ‘Onboarding Integration and Growth, brand acquisition » Buyer house tran] evens tera > Ses rugh vation > Sensienetinert > Chocesevns andr promet apes tty stron > Dasusons wen enews users >» Props oaldoounets >> eegaten wan tbepatom > Bier use and expands presence > Crgal owners a etanads csr rd ight sted anupsde nin met ptt hgShiprocket (cn) ir success FACTORS D2C have competitive moats such as agility, strong understanding of e-commerce algorithms and noo to manat spud css ouncsandcrna endear > Fer gp tra tedslon barca te seindentyeg andlurchingn ns owt segments naralctngeliesactagg mediates g-daun ces nrcurtet rade (Saban tc hte cara) © Premium whiner mags sng oxard ran natant > Peat re oe condandchge re conmecetsey cntercehos 170 defectraecr ey heures erento den chara and at rexgorgichageinnen 23 > Sonal mara apsltes otc cicet rains er gee cnmace se spa opm posit onotneginar sexes. wih ener bry hanced Hae sens Arothntoes rat penton tine ctane, nearer cant siceatO2C Hea >) Onin etl azmalahre torr ses lrneunbenbrads fine ets acerca ferme een somsters pehagra.e g 3 a g 2 éey CHALLENGES Pe Ca A Cn Oe enc mein Porras ey Challenges for D2C brands’ growth in India Niece) Nica Wiles bein Re ee See er eed Seen Poses epee eeperierecny anes foci Caen See eae CS estepipelometeiat mentee ny fecal ee eee ed A ee ed Cee ee ed Pa) Ce et Cee ed SE ees Seated See ceeeetaarad eae cee era onic Ua Earn Ser ees ee Se ene Pocono neu etn) Tobe ate feet eee es canon) Sc Seann mech Prone ad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 {#26 Unicoms 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 hoz on -onned eee sippy cho Eyewoor WARBY PARKER 2010 - Desaned te cum hanes hee rato een ees | Calsberteth commun invercers (a: Pmeungwarhy camosin > seed nacional ersonaicare (2) oouarewecue 2011 © Greta cnphacsnsen humour andauhentcy tescraes hae csr Stunetonvantcuonar Huouvioaea:ma dso > amanda cers ere ‘eetee ttpoceae Eyewear @ 2010 > Persanalzedclohingon subscription bass stron Fix > Ue gta ean soarerovackestamer petsonees | gr bon me nena taming ve rtosohy 5 > Ard ais herr" nn pies edn et makeup scone ch Personaicere Glossier. ad » Foisdon ny ane vate rode Ea: rkes ery masom Uke Rcontees > Footed riery on02¢ caraBshiprocket ca 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. eee penetration followed by US with 14% D2C penetration. attitude are the key growth drivers Global e-commerce market ices fe 20 USS ounheetaetent tt ten A eS > Increasing smartphone and ta penetration » Wat doveope gta payment system ue » Evolving consumer behavior > Canmmanesand eet ucts Noun Pt >a oem pee _ >> Alby of tach sous and enablers hav optinzedthe lationship wth tbe anu aabA orm ‘custome trough automation processes nd suit salabitynlume an a=). ‘ales chante sso ~ wow > Covdhas rengthned th oppetunitsfrD2C brands as mere consumers re sntchingorine stopingPT AGENDA @ Indian consumption growth e D2C opportunity in India ry eet R Uy e Winning strategies for D2C brands and the path ahead : Case studies on successful D2C playersBshiprocket CATEGORY DEEP DIVE We have covered the following seven categories for deep-dive in the D2C market oF 6 a oo a We Penanicae —rycenyand_——=Aapariond = eweeny. = ‘ecvoce—_Hetcre ‘Soumer eos ceerentme sera) 7 ae 1 @ “ 2 2 (C— cattedindaae tpn: ( att se snd gouth ) acne ) Cerna (( Nonaace oomerana(o2ci spits) ( taemtinesnensandioymescrs ) roy ores ) ‘Surcofetator02C ondeShiprocket (cn) ir PERSONAL CARE > D2C LANDSCAPE D2C personal care landscape is evolving rapidly in India [a seer] ow rmamaesan sim) cathe @ plem Avé — (MABtters © Letsshave) EEREA _ he Yilvah corepsar ilane’ eum awnariRe’ ramus 20808 AaATA @ es a) 2 ebep cor > pe Phi tex @~ _ fens: oFOM. Greeabery” Eegvon| ximinicx stot A » Ox fonts amie fy HB @ | ptors vec. eo EARTHO GULNARE jm ‘mantra (Game) reegut Minimise OTT YUN “ih a (© Seroptonad Ferra 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 matketis ~US$ 2Bin FY22 . pera e ean eaioe ae DOS Personal care 02C market ‘Break-up of total personal care market to direct a UssB ‘online channel market w F226, force x vussie28 ussu8 geese “tcoe) ior DO a ae er an Come acu uted cd Rana] Cre at nn ee rc) er = © ‘Tottunding SSM) 11 st 2 31 3 2 Lastfundingstage Ser SeresC Sores OT rsoes, pre ples! Otome GShiprocket (cn) ir PERSONAL CARE > KEY TRENDS Unique product offering with subscription and personalization models helped D2C brands in booming REED > Sistine > D2Cbrand offer pemiumproducts > Despusectectnsogy-ALVR,AR mun churnete trate lower pce range en snd Vital estan ca > Casiomaed rcs oryour sn, pemumrande > Abpoweredchabots > Paraben tre prosuts “Toryourtace tone xampie: shampoo (1) wa |b SS 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 » a Zz < © & 3 5 i ate Face Wash ‘Colour Cosmetics ‘Skin Cream Hol Olt ‘Shampoo i os sg oo 3) 6 Y @ ss © & H) osteo meunvenn —Hakcrme Santa ducts cere Aes edaBshiprocket ca 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; 65%+ respondents make purchases at least once a month Natural / herbal ingredients drive brand selectionin the personal care space sapere tne eer tcc Seeer cone = on’ leo Oreniey Anavede | EFAS BeBe E oom | Ceicene Seminars temene Geese canes 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 ¥ en aa ® New innovative customized products launch (Gross margins and AOV Ontine penetration Natural herbal organic produets Premium products at atfordable price range Baling trust Targeting niche communities =o ame co > 020 bands ae cating customer demand nen ods ke—right gl, unde eye creams, vitamin Cseruns, hyaluronic ack rot srum otc. >> Avaabity of wieange co SKUs > Porsonalca product tga ensures high AQVS with good gros margins angina between 60-70% °» Walpenerated catego, losing geste eppenunty forD 20 brands °» 020 brand a focusing on naturalingredont whic wel: pereeved by cams »» O20 bands premium produc at chess’ tes es compara tadonl brands °» 020 brads ae focusing on esu-oeted stncare proucsleedng io gus tustandeustaerieyaty > Prsona car bandsaw sxccestly targeting niche communities instead 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 Sra on voc SBR nities vem o> a Seen weg PTS e~ Bitlis SO os» oo OO Bn me ~ same QD MINIT Q riots g8N @® SSID gs... : (om Bi)omy El & ws EA @ [rewe) oer & & & Oo Om weer tot 8Bshiprocket (em) 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 markets -US$ 4B in FY22 Ree SR ae ECCT (Grocery and gourmet D2¢ market ‘Break-up of total grocery and gourmet market to ine” USS ‘rect onine channel market FYE oman “pment Usss7oas_usssasey Co CO ee ee een ay Coa ed ena) Le | as oe al reer ec em ae enBshiprocket GROCERY AND GOURMET > KEY TRENDS Natural, fresh and transparent product offering with subscription and customization models helped D2C brands in gai (ca Mt bande Leous, Fresh to Heme cts hich ually mest sraseatoos Day bande- County Dacht, aiken promise rut troche nacre rsets Couey Det has to ade ost he meat brands - Lous, Fresh to Home, Tendereuts, Zapotesh or ‘esd toconk poate ‘Subserpton eda onsae= ‘epeatcustorers end ght purchase eanoy et beyondwater True Boments,bayondater whol - thefrath [Ea Ketory Honest advertising ints Food ingredients end ‘communication S sty brands- Country Delight, a Matra prise nat ‘chara wresiterced pods Keto oer personalized ‘betpians 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 (65% 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 SN=378 = Wiennrdteoiomronine |ESEESEE EEE! E Yom at se tone |S Oo Nouat/ Orne medic a ia consent ray fy | A A ww ao = ie ewnarpacadng WE WWW! ao aero memes 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 Stabe cee eer od ae » Magescin sho #0 50% crap steers bags pahapstood = FE suscrptonnacel > pectoris ag NetaL tech -eunty > tapeworm det pee HK rones > hint ora onto cockoptons erence eereten at ee lonervenary ka > carat nay ten a eaane rigorous testing > Uso edvenced techniques such sb, FD to martainhigh tans qty cote a pants sup hainShiprocket (cn it APPAREL AND FOOTWEAR > D2G LANDSCAPE Apparel and footwear: D2C landscape is evolving rapidly across all sub-categories et Oem WW oo GO cm Le. ot MRE Baw oo = 8) san oiege RERASH wiceess GD rD 2c... crore pasoue 1 fo ome HE BELAMO iets omnes |B. ig cS aa aD oe I mn — @ nONKOW mie 5a RAPIWALE OSS ta nee @rssy J mvc am (27) @ I ates caerBshiproctet 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 -US$ 818 market, 15% sales are through and footwear D2C market size ls ~USS 3B in FY22 pool 4 ‘e-commerce of which ~15% sales are DOC ‘Apparel and Footwear D2¢ Market ‘Break-up of total apparel and footwear market one USB ‘to Direct online channel market, lg FY22E.%Ce Ua POO ee ee CO uu ed Raya] Erna eee Tn Pe re Lastfundingstage Series! Saies 8 no eer SNE] wis SINT ‘lub se rsShiprocket (cn) ir APPAREL AND FOOTWEAR > KEY TRENDS Quirky latest designs, backed by celebrity fashion choices helped D2C brands to stand out a bunmer . pewards Qubo go eit) Laat Dapper Shoes ipaaniacamaneee ‘esesedsiectes Co. “urs nbon ree BewaKéer : . : ; a : 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; ‘Availability of wide range of options, sizes and customer reviews ‘48%+ respondents make purchases at least once a month are the top 3 brand selection criteria Respondents’ Purchase Behavior Brand selection extern, %N=583 SaN= 58S . =e deragectoptons uae isi et ie eth weso% cotomereien SERRE RRR A tanayotszes/iawnere Ghd fete eae 40% som Seneoasasa BREE ERE = ae Onsancotoietonopton nae tdi at 20m Hm vemushaproduestom stn owhienow 9 i 20% Ancstossees teint 2% ‘mavonteatonccrnens tiie 18%Bshiprocket (ca APPAREL AND FOOTWEAR > SUCCESS FACTORS High margins and AOV, regular stock updation and data driven offerings are some of the key success factors for D2C brands Margins and AOV > Apparel ooesr roduc calor nsies high ADV wlth good margins aning been 40-60% lar > 02 bands update the designs styles egy oop theculorers engaged ato crease ep D_ Regular stockundate eae >» 020 eran ofr ts ecgnsieluncod by data-van insights hcugh gra data arabs, herby rising treated om design opr! eh % 2 motivation ee beter customer experience ee ee er Reet sanenione watt ete nop nto nbn nt and oa ty SomuTSINgmame acteurs | GREERco 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 ? onNiza. Beets karafcart iy BT BR . (8 evestone ake QB eusersox pepe LLA’ aadyaa TIPSYELY cuore $b MELORRA Ellipstore ii Gehna @ AuGey Ge (0 corn Fin ttyBshiprocket (cm) JEWELLERY > MARKET SIZE Jewellery D2C market size is estimated to be ~USS 198M in FY22 andis projected to be ~ USS 692M, growing at a CAGR of 28% Of the total ~US$ 828 market, only 2% sales are Jewellery D2C market sizeis “US$ 198M in FY22 a Jowellry D2¢ Market Break-up oftotaljowellery market ee Usse ‘odlreot online channel market FYE een a usse2ae—usst7 on “se wooe) ior JEWELLERY > INVESTMENTS Cove ea uD SE een [ocr el DN “ot tunding (USE M0 m 734 5 Last tuning stage Series sees ‘eves A Me 2 a. QanenonShiprocket _ it JEWELLERY > KEY TRENDS New unique styles with personalization option is driving success for D2C brands in jewellery space Epes «== voylla rill : 5 o GIVA =“ 7? SF = A 4 ry (ecco = Been 4 @ Sa ppabela -2 8 i tas Ellipstore eee eet Se smote sty red ey See Cr]Bshiprocket co JEWELLERY > SUCCESS FACTORS High AOVs, personalization model and efficient cataloguing and presentation aided D2C brands in succeeding pov GP catalogingand resentation ae 43 Suinepenmeedonter {fashion jewelery © Wwetontrand {Uy Fashionable jewellery at ~ atordable prices gs Offline presence for fine jewellery 8) pac brand > Jeary ensues high ADS wth rss mans 25-30% » D2 bands showcase a wie range of products snc they have much ower Iventory costs > itagrate oftecnalgical ete the 'Vtal-ry-on a vsual Semel customs ty on and swe or rove optors > Personalize enetery designs lke namedneekacesin mutillanguages, coupe ewelley. ith monty Aowers have gained alt vacton| > Orne casas uch eo yen fsb son eve, adr epporunty fer D2C bands > Bras ter authentication cetieats, hereby blding consumers ust 2» D2C brands serena signa customer sopment by oferngfshonabe ower at odable pices >> Customers vl Touch and fe exprone whe purchasing rejewalry and honce peer ting fine sores > GaratLane and Bluestone nave te physical ouchponts kscig to eter csiomer 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 fambrane @molife moorerse @aizmore DIZO_ A rowinowes twe/saurr (j GIONEE TAGE PLAY ADCOM sminepaive’ @oos —Dpebble conekt Ao iM papa | Agvovnr avoz0 once AXyxtur Bsaeter DA Daily Objects 4, monamouz Fs Qvrsesey RAzGR EH] @owe! @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 SBrcersn Set eniee rou Electronics D2C market Break-up of total electronics market nn USS18 ‘odirect onine channel market ~ FY22E% om —<— a EEE 2m ma —— ae 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 Peay > eset atta » Most snares > Neworm eons > eased dems » nese bain an Serces(-67awearea "hae upped pevidng sratwocteswanteoth/ ——” arose ogedogiast inCY21 had ASP Lage sana > Appeaingaesteteaisa ——® Maher repurchase > ao%nan wile > emsedaccesat tame fecrnepeainpoverents—” keyonerforTWSane fremienoy intoeader payapremimtcrouiics —” ede-conmecepistms faves rea areconperer oa rehelnenbeaes. emoingheatha mouincurre Snarorone > pueteotheating ‘ene “cinaeray” «~~ _ Seropemntgcme cme toes os »Bshiprocket ior ELECTRONICS > CONSUMER PERSPECTIVE 18% respondents prefer direct online channel; spread of product range and customer reviews, after sales service influences purchase decisions in electronics 0%¢ respondents prefer purchasing onine; 11% -Avalatlty of wide range of options, customer reviews respondents make purchases atlesst once a month andiater sales service are the top brand selection teria Respondents Purchase Behavior brand sleton crt sNai89 nero = tense nmnne | sess st om = eaten omar | ss Habs dsdsdsos de oe serrepmmenaie sna seston | 0 serena os am wvopenuanarrsucon epee armBshiprocket co ELECTRONICS > SUCCESS FACTORS ‘Soaring demand, product innovation, tech-savvy population have helped D2C brands succeed in this product category So nov y Prodiet innovation ‘Affordable price * Large tech-savvy young population sa) eteased demand > High AOva staring om INR5OO > Brands re constant een herseles by updating / upgrading products > Feeusingon sean mor portable andes teeh-enabled hale an weatables > hh sever vender launching vices at moet pice pos, hearablescategry sm the mus eaded rice conacton lag a neeased affordably > Tech cavy young population ling to adopt inovaive and premium predicts) such as TWS cares, tects products > Work fom ham ctr has ecelerated the demand for hearables. >> rena avalaty f 46 and WR nets fusing the ation wearable devices > Therap wnstomaton af dig steaming sarees Higher repurchase frequency > veto regular expansion / upgradation o fates anduso-coses ‘Online penetration > Wet pnaated category lego rete oppatnty fer D2C brandsShiprocket (cn) ir HEALTH CARE > D2@ LANDSCAPE Health care: D2C landscape is evolving rapidly across all food supplements category Oa okivag> OZIVO [EERE oxurrasay “andMe = Trwnativ, —-Fasraur EH team PEM ceafMart CUREVEDA” ga Get,» mojocare mar, ome A Ey Go age AZANI —2ittut Herb Diet ale beatt> ci et ©prOdie A@accusue BGO 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 ace ST SICe AERO eee ere DOC) Heattn Care D2 Market Break-up of total Health care market to ona Use ‘rect onine channel market Wig eaeoa ey HEALTH CARE > KEY INVESTM Come ea tuted ed I meee ate CN a 4 mars, BTS Cy Tottundingiussm 70 a 55 52 a oa 2a 162 Sotee Last funding stage matrix @ Brit so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 > commesmevito > Conner se moet > Sapte sot > Alagestetcrcone ae ‘towels Estepirnonchomea! ‘onesie Sesvemarsnnr cer > Siteoiins aber eres ere ‘Ropenens seston Sedat acct suerte Bovoonder one man OZIVA cunevena” ‘end otencesnao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%+ respondents prefer purchasing online; 75%+ respondents make purchases at least once amonth Purchase Behavior %mNA130 comets ‘reno foiepca 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 va, | CH EH Ba taroscgng | Se IH 00 Hoveanuinapoaicton | CCW CS eam CcusonerRevws | GCEBShiprocket (cn) HEALTH CARE > SUCCESS FACTORS ‘Owing to the increased awareness of nutritional supplements, D2C brands are soaring in nutraceutical market Natal nol upsets or preventive and proactive health are Produet ot no >> util pinata otings wit heath concomed purposes we 3S Anerativto pharma - Rem ee > Demande immunity boosting syplamontshes ncrased duo to COVID eating [2 Increased demand strong demand fornutseeuteasia nd Online penetration > Ovete COV, canaumeshaveshited pi rom bik and mortart online purchasing sii Gotomarket speed > High goto market speed diven by capil tourdestrtonine and and easton 2G. Sales and distribution > Players such as HeathKart have crested comprehensive sles and distibution ecosystem wih 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 aon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 vncttaaer YE Woodenst LeMONDECOR* —alydecor |) ) FURLENCO | pepperfry bluewud Décor and home improvement sieBtcar J Meingom Gre @ jaKefit sieepyhead pepperfry WINK»NOD THE SLEEP I Company th Biiterioue ECO @Censta wurvanl ROU Pamom & ®, prakriti er Yoidentity Wn (© sro Cr]Bshiprocket ca 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 sizeis ~USS 1B in FY22 through e-commerce of which ~19% sales are DOC. Home décor household supplies Break-up of total Home décor, household pen ‘and garden D2C market ‘supplies and garden market to DOC market wy” UssB FY22E,% ww Qe vussese uss198 sees “con = —Ce cm POS ne SO RCCL ean g Cou ret e EI Reread — _ FA ee me coe Ce os RPG socalShiprocket (cn) 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 drivers of décor, household supplies and garden ey (ee > nignintgiasbexe «> tCottientcinm > cnt pcr Sivecsiawite aaa Saayeseetene eae iced ‘Soya Scroissdsmeeche Miwa Sader Siero z > tie tea looked at a away for >> Segments such a suteco > iardbbtsechatomion “sen oy Segummcnenden > egrenientnat, ‘ostcoanrenperasoe ace ey bho roe Sorandesestrhe) ioe! ree, | Set ‘ocummnon sens ee @ Bgaco Bebove Ecensta — wakelt wma ta P| oyBshiprocket ca HOME DECOR, HOUSEHOLD SUPPLIES AND GARDEN > CONSUMER PERSPECTIVE Home décor and garden: ~15% respondents prefer direct online channel; spread of product range, customer loyalty and packaging influence purchase decisions [1/2] ere as Se | coer armament es oars Fan —— ~ ‘Better packaging =m! = al ml som comets ‘ufone paca nersBshiprocket ca HOME DECOR, HOUSEHOLD SUPPLIES AND GARDEN > CONSUMER PERSPECTIVE Household supplies: ~26% respondents’ prefer direct online channel; quality, spread of product range and packaging influence purchase decisions [2/2] ‘75t%+ respondents’ prefer purchasing online; Quality, availabilty of wide range of options and better ‘75% respondents make purchases at least once amonth packaging ae the top 3 brand selection criteria ‘Respondents’ purchase behavior N= 189 San vat | ata — i a errr ee Hombernudnapredcstiom | 8° A0 slat alata am cestomaovewsBshiprocket (ca HOME DECOR, HOUSEHOLD SUPPLIES AND GARDEN > SUCCESS FACTORS High AOVs and margins with increased demand are some of the factors driving success in home décor /improvement sub-category >> Home dlcorpocct catagory ensures igh AOVs with good margins ranging between 50 60% © errand nov > oun renga ho hgh magn (60-60%) ae > Tong phase of ascend eta arts amet doin rho aig S poscntecomy Promaster eee QB otering > Prieto contrparay eg a lr pat rt tion sy cite : eae onan erie renee niente eae i deter Somoaagiancnctat 7 > wo pon Sess lar, conus aves irom kan mortar one EZ ontine penetration Wann FE] Managing SKUs etticenty > 02nd teaming lnge SKU peel home ccna Structured supply chain and az >> Well established sup hn to minimize ventory sks lower inventory risks ae maieee AGENDA @ Indian consumption growth e = D2C opportunity in India e D2C category deep dives ~ er @ Winning strategies for D2C brands and the path ahead e Case studies on successful D2C playersBstimoct @ D2C brands need to focus on seven key capabilities going forward ee ‘© Product developrant reel supply chan structure, essere, * Brandafchtectu, stoma sogmens end targetng, categories fl aeorophes fly Seribaionchannelms.__grwtleoning by reget ste aeoaePhy an chanel $ > een costen >anattnserataiay Orchant > Sonn somation > Loa an > eurceaandewmeresre DSupiecomutéeronen > Goansepotinedieiaion 4, fone > Pepe neoemert Bean Pete rteg Dimagsepaactssinvce > Mewtangermapyaceet rteyttenaoancen et > catamaran ‘Torsone epee Vatouesapesteatepscaesp >Gbinbtenandeanon Cage eqn chan Perea i 7 anus > Charratinagstin ee open ome seks ne ns ans tanceneti | > Coton aquenct i Profitability and unit economics Porto prottabiy management, predict /geogrepy ev protabiy, gross margin and cacounts management Nota: CAC = Cusoner easton Cot RT = Aer an [ShtSpetarunsns Secs eeawch aseBshiprocket cn Business model evolution: Eight key factors to consider for business model evolution Prout development ‘model > Pea en >> Pat dntaoment cle > camonertatscana roo mene ‘Supply chain structure > Mencia nso > Fran > rey mle > Realtime ty > Adocarey alon ‘rand reitecture >> Sandan pocteng > onsone oon © Geographies of play > Dore ert! > Mea emanion oa ‘pet ‘andtargeting| Se >» oerarsetarease come >> Seger ageing in Distribution channel mix 2 One tint > manger atcn > carat sesact woroertBshiprocket ca PRODUCT INNOVATION AND MANUFACTURING Product innovation and manufacturing: Brands should do thorough analysis of customers’ data before launching any new product in the market Product innovation Manufacturing and design {ij Omuainens > tan and intone caste np _ a freeones” rmadeunne ewes ce Pontoon > conte > tome soracsnrs > aly ottin ts cxoryetsnemt > ntounjcnmea = tame 1 Posuténin, _® Surana poet eat a = ‘oservethe dana EE Apowiontoonear > Inoue Const >» house Comet roeae > Wt os in an nny ar = (eu eto etre men marsreacton © te > comet > rie Canc simrpuaastaran |] 2 Pet nine tm ety nh pet _ off vecmens ‘otetaget auton Be exeverics >> encom ae 1 1 Hatha >» ihou/Comet ——_» nha Ereciact nso tn Hedin > nhameComet > tet > Fnralind i rr tas. LE > aes 0 sey potato panes ae an bepieterricen ay Bee eee eetBshiprocker (ca OMNI-CHANNEL DISTRIBUTION Ten types of omni-commerce opportunities are emerging [1/2] Le ey os ee a ee a oe Sk EE, RE ee 7 w o_o _m—o if > faction wines an eee “Se sm mconmercoma ¥ o_o @—o ecosystem edo) Se oad pdt ae nny oe eet bm" lamas 1 Sodan Bere’ s 4-8 | 3. = Soot eer somes car | © Se fo eee te OC Seven Poser teeBshiprocket OMNI-CHANNEL DISTRIBUTION Ten types of omni-commerce opportunities are emerging [2/2] ey (Ore oman et 0 seat naga Wetton) Savin een ° Posing sore Yoeing Set Pir co zu SS ‘Seva cai! > sme fot > Noro coe > ean tena > Mayet tare pre incomanenimcny > nemo past een 28 pe > Hain aay seat >> Sy chan de wade racedBstimoct @ BRAND AND CUSTOMER ACQUISITION Brand and customer acquisition: Awareness, usage, attitude, perception, purchase intent and propensity to advocate are the key levers of brand management > Unaided cal > Receney > Brand associations > Consideration > Diterentation > TOM real > Frequency otusage ——» attbutes > Tal > nes > Alcedrecall > Spend propotion share” Fanetona! > Prechase > TadChannel NPS Branding component Sead oa Satstecton Prorat > compen ore > on > Promotion recosmiton > Diferent personas 2 keycritera (segments) ice > vee > Gonsistoney of » Uniqueness ae > Recall associations Seni» aie > Experience on ey > Repeat purchase eitala > Tht Part of Praxis Proprietary Framewerk - Brand360"™Bstimoct @ CUSTOMER LOYALTY AND RETENTION Customer loyalty and retention: Churn protection, deeper engagement and loyalty sustenance are the key objective of loyalty program Objective o the program ae poe peeereey Return Return on Investment (RO!) Investment sonar sina hones oath Ce | Gee ee i <= t 4 Sear AS ay CaErsesD (SERENE aa : 5 eS ane | > sien eel: > exeecrnaescam nota ap Feng wy” Noa ett Were Moh AD = rapt aie Set eraBshiprocket ca PROFITABILITY AND ECONOMICS Profitability and economics: Primary levers of D2C brands’ profitability are discounts, CAC and logistics cost management Illustrative unit economics for aD2C brand (Scaled to 100%) stave Levers to manage key cost heads ee a es ac * reap comnatn a a > chommmaenbyarn Rae — eT aoee —” soeanato ae 5 cael ane ce ce Semwcatinayomen” creases ones aay “2 Pcie pt ache + SKU rationatizaion > Crowe-seltohrreane BOW. a Sec era cromiees » conan poe > tomenappeaninneine > iacmereniontatbce > coostmenn tees ee poetsieee cz] AGENDA @ Indian consumption growth 4 CASE ili) Cn 20Xe) >) oo) a Ural VAAN A} © D2C category deep dives e Winning strategies for D2C brands and the path ahead ° cessful D2C playersBshiprocket D2c PLAYER CASE STUDY > PERSONAL CARE Starting with baby care products, Mamaearth has evolved into one of the largest D2C personal care brands in India on po en pee pe mamaearth 4 mee" EE Orne uss © tana paca tte i = etcrohan aoa a ee re Oe A ae TS nny Pec eee “a a Cee ee = fut | cesarean omy ot 0-178 pnt —_ ee @saAas & so St bem = wes CO Rin ” Sennen a Pt ~nnateecnenan) === ae a eee 6 earl cctasasBshiprocket D2C PLAYER CASE STUDY > GROCERY AND GOURMET With quality product offering, appealing marketing strategies, Licious successfully generated USS 56M revenue in FY21 and became aunicorn Founded fly Headquartare = Totatundng 4, Vtaton terns Wire ES pein "= veswoou © Uses” Nanton fot poze = Ta Sayan aa = be ceateemen emcees = sa Desay toccoe > ccmaciy too a 2 == BE sores tua” caltoontemieee one eee = © tees > vem B- al ae ie inlBshiprocker (ca D2¢ PLAYER CASE STUDY > GROCERY AND GOURMET Founded in 2015, Country Delight offers subscription-based model for dairy products and fresh farm produce toned fp mies 8 tats @ itz=es Se oe ae = mee © ce <= ose | a | Silanes, [Esmee ES weg» can ey Omen oeacierieasy &. a— = eeeBshiprocket (ca 2c PLAYER CASE STUDY > HEALTH CARE With plant-based nutritional supplements offering, Oziva has successfully capitalized on the health and fitness market growth “ ge Founded je Headquarters (= Total funding Revenue Offerings: @zIva cape ease mata Ne aed eroeeeet m i ‘(Gories B) ry2y ‘supplements: = ———— a Benner OD = eed pases ae > Qorericonen wpencnenaneny — EB Kocitnn'™"” fe toga Horan omens lowcssaase » Canteenygtens @ re sonee ” Rens tome ‘routangnrany oven Som Simgcovo > aramamoernp-possated ‘ister ee dans ‘oan beauty (NR 3991008) fe essere ne Sere ot SeeBshiprocket D2C PLAYER CASE STUDY > ELECTRONICS boAt has successfully generated US$ 200M+ revenue in FY21 with US$ 110M total funding DOM 70" ENENon Stor fiom oe cite ss 2060 ‘ud oats man aw EE > onzanmnese es eax seedy Fase ertant esis] ees reece e1K10 ekak on ss 216m seedy Fess AS Branding > conten ama tetion moto | Ves wontdeen ty Yate Pic Sposa imate pone oe aaa > cata rahmai ter ene case MP ews m5 Secs se + 1s 27% ety noe Cat ———_-_ = B=. Uy ssi0700 Ir Orr ta SS Oe =w=y¢—f= = -Bshiprocket D2C PLAYER CASE STUDY > ELECTRONICS Noise is positioned as a masstige brand with affordable products & high-end tech; strong community of ‘Noisemakers’ built @ nose of Founded fle Headquarters j© Totalfunding =_ Revenue Offerings a ee ze Eames —— a ° SS ae & 2 iia cee nye) (ae oe 2020 + tiered re eee es ee ca eee es saeBshiprocket ca D2C PLAYER CASE STUDY > ELECTRONICS Founded in 2019, Quho offers wide range of smart home solutions and devices os Wf Founded fly Headquarters © Parent Company Offerings zoe Denuinan Otte ieee eerie Hert ‘airy pode oma enti Pauses EE ae eT eM cer iene (ONT ee eee perenne Gea R econ cece Sees Se 5 1A abeion» Amott amare Meioe > Yaaro seamen ieee, @ Sey > Rane: b= — = — = aes ee real ae, (ey 1 toe toate owe _* En =_ ud sunginsee ma meBshiprocket THANK YoU We would like to thank all the brands who have participated in the survey for D2C report BARE ANATOMY? ARATA v Avimee Herbal RECOvE Re'equil rocry oe teaorigin ‘Appr and 60 ewer, co Elipstore ms Estele ® (cn) * We el mosis pres Bel d- exotic india (@SMITCH ia]ee i a 4 = » Ts son702 estate ven ‘market detinition Sats tl maiwoueeronsene oes > onto teas ant caappeebate DOC (Direct ontine channel)» cssammountens anes aoe ‘market definition itecrasaeac rayon > Rtherastonsr > Stag Daperes > Sincre > Botan ors > odes > Sonya Notineudedin market se >a (cnBshiprocket MARKET OVERVIEW - D2C PRODUCT CATEGORIES Market definitions of what is considered in market size: Only 7 product categories are considered in market sizing [2/2] avket lament 6 Grocery ana ‘soumet Wo etn care Product categories Home door, household sunptes ‘snd gwen Included in markt size > eacey 2 Hane cores > Oe > Setetae oem ome asenr| oo soe pote) > Aleman enemy) (cn Notineuesin markt size >na > wmioe PUT cd ‘Shiprocket is India's largest eCommerce enablement platform providing digital retalers an end-to-end customer experience platform. The platform See tek eee mee ee nae ee providers for SMEs, D2C retalirs, and social commerce retailers in India, With 14+ courier partners on board, the brand enables pan-India as well as Intemational shipping deliveries. ts shipping solutions are available across 29,000+ pin codes within India and 220 countries worldwide. Launched in 2017, Shiprocket is on a mission to create a seamless logistics data platform that connects retailers, carriers, and consumers across ational and intemational locations. Shiprocket provides a technology stack to help retailers integrate ther shopping websites on Shopify, Magento, Deo te ee oe eee Ge eee ee Ee eee Reece eee oe a oe eee a ee aa eee solutions with more than 35 warehouses located across India. The technology stack provides a robust post-purchase experience to consumers, resulting in higher engagement and lower RTO (failed deliveries) See ee eee eo a eu Ca a ote ent ee eke eee ne ee eee ea Cte: or Cee” Peay Cee een pent ort cere) esr patra)ioe Vey Praxis Global Alliance is next-gen management consulting Berea ee ee) pee Rae eee ee cy fore ee ae ee cs a Ce eee een al fearon! Petar Se Pee eae Ser ene eee bret ae rent ee ears amet Positives ers rom elie) esis (Cee Se ee IN ee ee ‘scan Senay snh Prana‘Confederation of Indian Industry “The Confederation of nan Indutry (Cl) works to create and sustain an enviranment conducive tothe development of da, partnering Ici, Goverment end cl s0cety through advisory and consutativ processes, Cis a non-government, not-for-prf,ndusty-ed and industry-raraged erganizatio, wih over 3000 members rom the private as wel as public sectors, nctaing ‘SMEs and MINCs, and an indict membership of ver 300,000 enterprises from 294 national and regional sectoral industry bodes, For more than 125 years Cl has been engaged in shaping Ins devlonment jure and works proactively on ansfoing Indian Industry's engagement in atonal evelopment. Cl charts change by working closely with Goverment on poly issues, tracing wih thought leaders, and enhancing efficiency, competitiveness and busines oppotnitins orn througha range ol specialized sonics and statgi global inks. iaso provides platform for consensus-bulding andretworking conkayssues stenting its agenda beyond busines, Ci atsists Indust to identy and execute corporate cizeship programmes, Patnerships with cl society organizations cay forward corporate intatwes for Integrated and incusive development across diverse domains including affrmatve scion, Ivethoods, diversity management, sil ‘development empowerment of women and sustanable development toname afew ‘As Inia marchos towards ts 75th year of Iedopendance in 2022, Cl withthe Thame for 2021-22 as Bung Inia for @ New Worl: Competitvnoss, Growth Sustanailty,Tectnlogy edeccats tea to mesting the asptions of chiens fr a mara, economically andtechnoogiealy advanced country inparnership withthe Government. ndsty anal stakeholders, ith 62 offices, nung 10 Centres of Excellence, in indi, and 8 overseas offices in Australi, Egypt, German, Indonesia, Singapore UAE, UK, and USA, 26 wll = Irattona paterships with 384 counterpart orgrizaton in 133 countras, Cl sores asaufrence pon fr Indian industy an the interatonal business Community. Confederation of Indian Industry 25 raters A Le Nw Dah 1005 sa Ehoeala- Hewat Follow uson G@ 0 @8 O Clrvsemect Cntr Cimtnegn Cline oh gar Mette Hele Nabe 0-1-0908 6248.01 14185500 |e Tet Fe Nant 800-105-1288(BShiprocket erred Customer Experience Platform For Direct Commerce con) co co co co) Arai) See reer) Boost Shiprocket € ey Rocketbox Baler) Ceo