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<ul><li>D2C brands’ gross merchandise value is expected to grow to $35 billion by 2027.</li><li>They are expected to grow at a CAGR of 40%, faster than retail and eCommerce markets.</li><li>D2C shipments were at half a billion in 2022, and could grow to 3 billion by 2027. </li></ul>India’s direct-to-consumer brands are growing fast, spreading their wings far and wide. As per estimates by Redseer, their gross merchandise value (GMV) will swell to $35 billion by 2027. A large number of brands like <keyword id="4548811" type="General" weightage="20" keywordseo="mamaearth" source="Orion">MamaEarth</keyword>, <keyword id="360663" type="General" weightage="20" keywordseo="kama-ayurveda" source="Orion">Kama Ayurveda</keyword>, <keyword id="211425" type="General" weightage="20" keywordseo="hopscotch" source="Orion">Hopscotch</keyword> and <keyword id="12227756" type="General" weightage="20" keywordseo="the-sleep-company" source="Orion">The Sleep Company</keyword> have been gaining ground for the last few years. Yet, the D2C market itself is at a nascent stage, believes Redseer. “Brand creation is getting easier and incentivized,” it added. But they’re chugging along fast and are expected to exhibit a compounded annual growth rate (CAGR) of 40% for the next four years. Their growth rate will outdo retail market growth as well as the broader eCommerce market. Their growth rate is thrice as fast as compared to the retail growth, and 1.6 times that of the eCommerce market. Their growth will also give a push to third party logistics (3PL) players as D2C brands do not follow the traditional distribution channel. In 2022, the number of D2C shipments stood at half a billion. And, they might grow to 3 billion by 2027. “3PL solutions tie-in well with the D2C segment as demand varies across cities/regions and the required logistics investment is on the higher side. Brands need reliable logistics partners with a wider reach across India to ensure consistency of experience,” said Mrigank Gutgutia, partner at Redseer. Most D2C products have varied requirements like return management, cold storage supply chain, hassle-free claims and more. “The mid-large beauty and personal care brands are also competing on reach and quick delivery. Hence aspects like ability to handle fragile items matter more prominently for them,” said Redseer. Home and general merchandise brands also require high degree of shipment protection to prevent damages. Food brands on the other hand work on lower margins and seek affordable shipping. Brands need quick delivery in cities and dense networks to enable quick delivery. “The keys to success for 3PLs vary widely depending on the category of D2C players, however, tech-enabled reliability, shipment protection and affordable pricing are what the D2C brands in India seek the most, with pan-India reach being a fairly common expectation,” said Gutgutia. <keyword id="2841678" type="General" weightage="80" keywordseo="xpressbees" source="Orion">XpressBees</keyword> and Shadowfax are used by brands that need low-cost shipping. Delhivery and Blue Dart are used by brands that need quick and reliable delivery which is tech-enabled. Ecomm Express is known for wider reach with a larger focus on tier 2 cities and beyond.

D2C brands growing at a much faster clip than ecomm, shift to boost third party logistics

<ul><li>Competition heats up after <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> closes its $16 billion acquisition of <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li><li>Alibaba and <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> are said to be eyeing large investments of their own.</li><li>Conventional retail and <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> players are coming together for a hybrid online-offline business model.</li></ul>A turf war is about to break out among Walmart, Amazon Inc. and <keyword id="163405" type="COMPANY" weightage="20" keywordseo="Alibaba-Group">Alibaba Group</keyword> as the retail giants make aggressive moves to expand into <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>. And it is highly likely that this will lead to a massive shakeup of the Indian retail space. Last week, Walmart said it had <a href="https://www.businessinsider.in/indias-competition-regulator-has-given-the-walmart-flipkart-deal-a-greenlight/articleshow/65337242.cms">closed</a> the $16 billion (₹1,118 billion) deal to buy the majority (77%) of Flipkart, India’s largest e-commerce company, following regulatory approval. This is Walmart’s biggest acquisition till date. In its aftermath, Alibaba and Amazon are said to be eyeing large investments of their own, according to media reports. Alibaba is said to be <a href="https://www.livemint.com/Companies/1mvbhDUjZd9khrSUroW5MM/Alibaba-may-invest-5-billion-in-JV-with-Reliance-Retail.html">considering</a> a $5 billion (₹350 billion) investment into a joint venture with <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>, India’s largest retailer in terms of sales, in part to take on competition from Amazon and Flipkart. While Amazon, along with co-investors, is mulling an investment in the Aditya Birla Group-owned grocery chain, More, for an enterprise valuation between ₹45 billion and ₹50 billion. Alibaba has reportedly also held talks with other Indian retail chains including Future Retail. In the past few years, Amazon has pumped in over $5 billion into India, its fastest growing market. Amazon and Walmart have been in fierce competition in their home market, the US, for quite some time, while Alibaba and Amazon are head-to-head in China. Some fear that Walmart’s push into India could potentially have an adverse impact on the larger Indian retail space in the long term, particularly on the small brick and mortar retailers in the country. A nation-wide trade lobby group plans to protest the Flipkart acquisition by going on a nationwide strike in the coming months. Currently, over 95% of India’s consumer retail market remains unorganised, representing a huge untapped opportunity for organised retail chains. India has long restricted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> in multi-brand retail to protect local grocers but allows 100% foreign direct investment in e-commerce companies that use the “marketplace” model. It is currently considering bringing in regulation for the e-commerce space and according to a recent draft proposal, may allow 49% foreign investment in e-commerce companies that use the inventory model. Walmart in its recent statement said its future investments into India will be directed at supporting farmers, supply chain development and reducing food waste. Strategy shift: Going hybrid Walmart’s acquisition of Flipkart and Amazon’s interest in More are the latest examples of large retailers adopting a hybrid business model of offline and online after years of experts predicting the disruption of traditional retail by e-commerce companies. Alibaba and Amazon have recently been focusing heavily on offline and online in their home markets – Amazon with its acquisition of grocery chain Whole Foods and Alibaba’s ‘New Retail’ strategy, which combines e-commerce and conventional retail in China. That rationale appears to be flowing down into their India strategy as well, points out Mrigank Gutgutia, engagement manager with RedSeer Management Consulting. Amazon also owns a 5% stake in Indian brick and mortar retail chain Shoppers Stop. While the Walmart-Flipkart deal is certainly encouraging for e-commerce players, even after 10 years and 100 million shoppers, Indian e-tailers have thus far managed to penetrate only about 2.7% of the overall Indian retail market, indicating the pressure to diversify their reach, notes Gutgutia. “While e-tailers have got their growth mojo back, everyone is starting to realise that pure online models will only let them capture limited pie,” said Gutgutia. “There is a need for change,” he added. Overall, as Indian e-commerce market matures further, e-tailers are realising that pure discount-driven models are no longer going to work. “What is needed is genuine innovation to cater to specific traits and needs of Indian buyers -- especially in offline-heavy categories like fashion and grocery,” said Gutgutia. According to RedSeer, this multi-channel approach will become dominant among organised retail players in the coming years, particularly for e-commerce players. Other e-tailers who have ventured into offline include furniture retailer Pepperfry with its studios and fashion retailer Myntra's Roadster stores. Regardless of how the investment landscape pans out and who buys whom, and as competition gets more intense for existing e-commerce and offline retailers, ultimately shoppers and customers are expected to win. As for small retailers, Gutgutia says they could see a positive impact if they work on a partnership model with organised retailers.

Clash of the titans: Amazon, Walmart and Alibaba to battle it out in India

New Delhi, Dec 13 () Jaypee Infratech's homebuyers association has urged all flat owners and lenders to vote in favour of state-owned NBCC's bid to acquire debt-laden realty firm as the public sector firm has experience to develop large projects and townships in the national capital region.
 NBCC and Suraksha Realty are in the race to acquire Jaypee Infratech through the ongoing insolvency process.
 On December 7, a committee of creditors (CoC) decided that homebuyers and lenders of Jaypee Infratech will vote on the bids of NBCC Ltd and Suraksha Realty at the same time. The voting process started on December 10 and will continue till December 16.
 As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have around 58 per cent votes. For a bid to be approved, 66 per cent votes are required.
 "Homebuyers want successful resolution; they are not averse to the plan of either of the two bidders/resolution applicants. However, there are certain essential criteria that steer NBCC much ahead in comparison to the other bidder," said Aaditya Gutgutia, who is the spoksperson for the consortium of nine associations of home buyers.
 The consortium of nine registered associations of homebuyers is known as '9A'.
 "Jaypee Wishtown Noida is a huge project comprising of 25,000 unfinished flats. Only NBCC has the experience of developing townships and large building complexes in the NCR. The support of the government and its navratna PSU status has instilled confidence in the 25,000 beleaguered homebuyers," he said in a statement.
 The association urged those homebuyers who are scattered across various cities and have not been able to keep pace with the developments, to vote for the resolution plan of NBCC. It also asked lenders to take a pragmatic view and support the NBCC plan.
 Earlier, sources had said Suraksha got nearly 44 score in the evaluation matrix, while NBCC got nearly 43 and 22.5 marks in two scenarios.
 This is the third round of bidding process, which has been initiated on the direction of the apex court.
 In its latest bid, Suraksha Realty further improved its bid to acquire Jaypee Infratech by offering more land and upfront cash to lenders. It has increased upfront payment to lenders to Rs 190 crore from Rs 175 crore offered in its revised offer submitted on December 3. The land-debt swap deal has also been improved to 2,320 acre from 2,220 acre.
 NBCC has offered 1,526 acres of land to lenders in its revised bid.
 On Yamuna Expressway, NBCC has proposed to transfer the road asset to lenders but before that it would take loan of around Rs 2,500 crore against toll revenue to fund construction spend. Suraksha will keep expressway.
 For homebuyers, NBCC has proposed to complete about 20,000 pending flats in three-and-a-half years, while Suraksha in three years.
 Suraksha Realty has also kept aside Rs 250 crore worth land for paying penalty to homebuyers for past delays.
 In Jaypee Infratech, NBCC has offered to infuse Rs 120 crore as equity, while Suraksha Rs 25 crore.
 Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
 Homebuyers' claim amounting to over Rs 13,000 crore has been admitted by interim resolution professional (IRP) Anuj Jain, while banks' claim is worth Rs 9,800 crore.
 In the first round of insolvency proceedings conducted last year, Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.
 The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.
 The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the Supreme Court. On November 6 this year, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty. MJH HRS

Jaypee homebuyers' body urges flat owners, bankers to vote for NBCC bid in insolvency process

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