How More Women-led DTC Businesses Came into Spotlight in Recent Times

Looking forward, the year 2022 is expected to be ruled by consumer sentiment. Businesses hence are aware of various consumer trends to tailor their products and processes to meet those demands
How More Women-led DTC Businesses Came into Spotlight in Recent Times

Over 40 percent of the total online businesses at present are run by women entrepreneurs. Also, more women-led DTC businesses have come to light in recent times given the phenomenal success they've experienced. 
 
Also, looking forward, the year 2022 is expected to be ruled by consumer sentiment. As e-commerce grows, brands will be conscious of the product they are selling, and also how they are selling it, according to a report by full-stack digital solutions provider Instamojo. And, there will be a heightened focus on sustainability, not just for the product but for the entire supply chain. 

Sampad Swain, CEO, and Co-Founder, Instamojo, said, “As entrepreneurs and small businesses increasingly learn the benefits of selling independently online, we can expect the DTC model to catalyze business growth significantly in the coming quarters. In the last couple of years, both digitization and changing consumer behaviors have made it imperative for small businesses to move and/or expand online."

In fact, last year, we have seen several D2C businesses becoming unicorns. 

"To this front, in the post-pandemic world, the DTC model can be an effective solution to accelerate business recovery. It is heartening to see the digital growth of this sector which has mostly been defined by traditional business models. As we witness the shift of DTC businesses to the online medium, we aim to support the growth journey of more than 250,000 small business owners as they strive towards becoming digitally independent,” Swain further said. 

Secondly, another major important trend that has become hugely popular is social commerce. It is likely to be the preferred channel for e-commerce from a consumer PoV, according to the report.  

To share some figures, 40 percent of the entrepreneurs on Instamojo that signed up in 2021 had a business profile on social media. Also, to replicate the mall experience, people are hopping on social media LIVE streams to shop while feeling like a part of a community.

Thirdly, revenue-based financing takes center stage. "As homegrown and independent businesses rise in number, there will also be a significant shift to revenue-based financing over traditional venture capital," the report further stated. 

And lastly, SEO (Search Engine Optimisation) is expected to become the most important marketing channel. Moreover, SEO to become the biggest free acquisition channel for DTC brands in India in 2022, the report added. 

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