The retail landscape in India has undergone a transformative shift with the rise of D2C brands fueled by the expanding internet and online infrastructure. Projections indicate a staggering 355.77 crore online shoppers in India by 2027. As direct-to-consumer trends continue to evolve annually, staying informed about these developments has become integral, especially as we approach the new year.
In anticipation of 2024, Razorpay Magic Checkout, a one-click checkout solution, returns to unveil the most anticipated direct-to-consumer trends in 2024. Get ready for a glimpse into the future—surprises await!
Table of Contents
E-commerce undergoes a dynamic shift with omnichannel strategies, projected to encompass 22.3% of retail sales, exceeding 541,836.74 crore by the end of 2023. Witness the rise of omnichannel branding, a key element of the direct-to-consumer trend in 2024, resonating with consumers seeking seamless shopping across platforms.
- 73% of consumers traverse multiple channels in their purchase journey.
- 50% consult three channels for significant decisions.
- Brands adopting omnichannel observe a 3.5X higher engagement rate.
This unified approach ensures consistent brand experiences, facilitating smooth transitions between digital exploration, in-person transactions, and after-sales support.
Inflation sparks D2C brands to create budget-friendly subscription plans, offering savvy customers a way to save on desired goods. The Indian subscription market, which was valued at Rs 1,200 crore in 2017-2018, is poised to reach 39.81 lakh crore by 2025. By 2024, subscriptions will transform into widely promoted value exchanges, providing customers with enhanced value for their money. Smart brands understand that loyalty goes beyond monetary savings, intending to offer a suite of perks to captivate customers. Brands are gearing up to empower customers with autonomy, enabling seamless subscription tweaks and delivering value beyond savings.
Learn from the best—Amazon Prime, Doggiliciouus, and Firstcry set the bar high, showcasing how a well-crafted subscription model can redefine the customer experience.
Embracing sustainability, a rising direct-to-consumer trend in 2024 signals a transformative shift in e-commerce. Companies pivot to eco-friendly practices, from manufacturing to packaging, and embrace conscious consumerism in marketing. In a McKinsey and Co. survey, 75% of millennials prioritize sustainability in their purchases.
Customers value your commitment to the planet, promoting a sense of environmental responsibility. This D2C trend not only resonates with consumers but also shapes a brighter future for both e-commerce and our world.
Social Media Commerce
As social media commerce evolves, brands navigate a space where products, client interactions, and seamless purchases coexist. Video shopping, live streams, and AR try-before-you-buy dominate trends. Instagram and Facebook see a surge in video shopping while AR try-ons revolutionize, enabling users to visualize products. Heading into 2024, social media’s role is pivotal, with D2C brands like Renee Cosmetics and WOW Skincare leveraging it for enhanced engagement. Trust and quality are paramount for brands investing in social commerce, emphasizing authenticity and leveraging customer reviews to cultivate trust and credibility.
ONDC, the non-profit open e-commerce network backed by the Indian government, has expanded its reach to 236 cities, welcoming 36,000 merchants to its platform in the last year. This initiative, designed to streamline digital commerce for small businesses and retail shops across India, is witnessing a gradual surge in transactional activity. Launched with the goal of fostering competition and startup innovation, ONDC envisions elevating e-commerce to constitute 25% of India’s consumer purchases within the next two years, a substantial increase from the current, which stands at nearly 8%.
Instant Customer Support
Customers prefer immediate connections on social platforms, with a 60% inclination among Indian customers for text and DMs in customer service. HubSpot reports a 45% YoY increase in social media users turning to DMs for assistance. In 2024, real-time brand communication will surge, necessitating the integration of DM and texting technologies. Studies show a 72% likelihood of customers completing purchases with real-time assistance. Take WhatsApp, for example. WhatsApp has emerged as a vital communication channel.
And to strengthen the engagement further, Razorpay is here with Magic Konnect. Magic Konnect offers 1-click solutions for e-commerce growth, retention, and operational efficiency, providing a seamless and automated customer experience.
Flexible Payment Options
E-commerce faces a common issue: many shoppers leave their carts, with abandonment rates soaring to 70%. DTC brands are tackling this by introducing flexible payment options to boost profits. In 2024, they’re not just incorporating Apple Pay and Google Pay but also “buy now, pay later” (BNPL) plans and EMI, which are especially handy for pricey items. Customers love this approach. These payment methods not only cater to consumer preferences but also contribute to mitigating cart abandonment issues.
Customers crave a hassle-free shopping journey, prompting D2C brands to prioritize seamless experiences. Research shows that 24% abandon carts due to mandatory account creation, and 17% find the checkout process complex. Online shoppers invest 1.5 to 3 minutes navigating through multiple steps, a cumbersome process for them. They seek a streamlined and fast checkout experience. That’s why modern D2C brands embrace innovative checkout solutions, like one-click checkout, to eliminate tedious account creation forms, ensuring swift and user-friendly transactions.
This strategy not only fosters repeat purchases but also fuels impulse buying, amplifying customer loyalty. If you have been looking for a one-click checkout solution, you can explore Razporpay Magic Checkout.
Short Form Videos
Short-form videos, once a social media phenomenon, have now emerged as a favored tool for younger consumers to explore products across various shopping platforms. Influencer Marketing Hub’s latest report highlights short-form video production as a leading content marketing trend for 2024.
Brands are capitalizing on this direct-to-consumer trend in 2024 to enhance product visibility, foster social sharing, and create diverse content by utilizing influencers and user-generated videos. Whether offering swift product demos or providing behind the scene glimpses, these captivating videos serve as an effective means to keep customers engaged and elevate conversion rates.
Today’s online shoppers demand proof of value before making a purchase. Social proof is crucial, as 18% abandon carts due to trust issues with D2C stores, a figure set to rise in 2024. The key solution is trust seals. Incorporate badges from reputable partners prominently displayed on vital pages like checkout. Enhance credibility further with the Razorpay Trusted Business badge, outsmarting competitors while consistently instilling trust.
With the iOS update prompting cautious data sharing and the impending end of third-party cookies, brands face a shift. Personalized experiences, valued by 56% of consumers, hinge on acquiring first-party data. Also known as zero-party data, this willingly shared customer information aids ad targeting. Some brands straightforwardly ask while innovators like DTC makeup brand Ipsy use creativity. Personalization quizzes, a smart approach, gather relevant data for tailored product recommendations. As the cookie era wanes, brands must adapt, finding inventive ways to connect with customers directly.
Robust Return Policy
In 2024, a customer-friendly return policy emerges as the forefront D2C trend, going beyond a checkbox; it’s a pivotal element influencing customer choices. Streamlining the return process, ensuring transparent refunds, and extending return windows become paramount. Integrate user-friendly online initiation, pre-paid labels, and local drop-off points to elevate convenience. Harness return data to refine product descriptions, proactively minimizing surprises. Investing in product quality not only reduces returns but positions your brand at the forefront of the evolving D2C landscape.
In 2024, chatbots remain a prominent D2C trend, revolutionizing direct-to-consumer interactions. Adopted widely in e-commerce, these digital assistants efficiently cut down customer service time. AI-powered chatbots boast a staggering 92% reduction in service tickets, proving their effectiveness. These automated tools are set to handle product queries, address order concerns, process returns, and provide valuable information. The rise of chatbots marks a user-friendly shift in direct-to-consumer trends in 2024, enhancing customer experience across various touchpoints. Razorpay Magic Konnect can help here! Businesses can achieve cost-effective growth, direct customer engagement, and AI-powered chatbot support.
After an insightful journey through the direct-to-consumer trends of 2024, our journey finds its finale. Here’s the revised checklist to guide brands toward customer-centric excellence in the evolving D2C landscape:
✅Social Media Commerce
✅ONDC (Open e-Commerce Network)
✅Instant Customer Support
✅Flexible Payment Options
✅Short Form Videos
✅Robust Return Policy
Best of luck as you navigate these trends, fostering strong connections and achieving success in the world of direct-to-consumer excellence!