SGA PR has launched a new report titled “The Shimmering Story of D2C: From Attention to Acquisition” as a part of The Pulse 2026 at Bharat Startup Summit 2026. The report explores how India’s D2C ecosystem is entering a new phase where growth is increasingly being driven not just by digital reach, but by trust, community, cultural relevance and repeat consumption. Spanning beauty, fashion, wellness and lifestyle categories, the study captures the consumer behaviour shifts, emerging demand patterns and discovery trends shaping the next generation of digital-first brands in India.
The report aims to highlight that India’s retail market is projected to cross USD 1.5 trillion by 2030, with the country expected to clock a 9–10% CAGR between FY25–FY30, making it one of the fastest-growing retail markets globally. Yet, digital-first brands still account for only a small share of the overall market, leaving significant headroom across beauty, fashion, wellness and lifestyle categories.
One of the shifts emerging in the report is the rise of Tier 2 and Tier 3 India as the new growth engine for D2C brands. Categories once seen as metro-centric, from protein nutrition and premium skincare to wellness supplements, are now witnessing strong adoption across smaller cities. Consumers who once spent largely on essentials are increasingly buying science-backed skincare, protein snacks and trend-led fashion online. Cities like Indore, Ahmedabad, Coimbatore and Udaipur are no longer just consumption markets, they are also emerging as hubs for building nationally scaled digital-first brands.
This shift is also changing how brands are being discovered – consumers today are moving beyond celebrity-led branding and becoming far more ingredient-conscious and outcome-driven in their purchases. Social media creators, peer recommendations and short-form content are increasingly shaping trust and discovery, especially among younger audiences.
Speaking about the initiative, Rahul Jain, CEO of SGA PR said,“India’s D2C ecosystem is becoming increasingly behaviour-led, where consumers are buying into trust, communities and cultural relevance, not just products. The founder who cracks Patna today is building something as valuable as the one who dominated Powai a decade ago. Tier 2 and Tier 3 India is no longer an emerging opportunity, it is already driving the next wave of growth. The brands that will stand out in the coming years will be the ones that can build credibility, drive repeat behaviour and stay closely aligned with evolving consumer lifestyles.”
Key findings from the report:
- Capital flow in the D2C market:
- Health and wellness brands alone have attracted nearly USD 971 million in disclosed funding, while fashion D2C brands have raised close to USD 390 million.
- 80% of brands featured on Shark Tank India were digital-first at the time of pitching, while 30% went on to raise follow-on VC funding after appearing on the show.
- Beauty consumption becoming digital- first:
- Online beauty penetration, which stood at just 6% in FY20, is projected to rise sharply to 34% by FY30
- Online marketplaces today contribute nearly 60% of fashion retail by value, while D2C and brand stores account for another 30%, highlighting digital driven consumption.
- Men’s skincare has doubled, while nearly half of Gen Z men are now actively engaging with facial care products
- Instant delivery reshaping impulsive buying with nearly 45% of protein category revenue now comes from quick commerce and e-commerce platforms
- In H1 2025 alone, D2C brands leased nearly 595,000 sq. ft. of retail space, accounting for 18% of total retail leasing activity, up from just 8% a year earlier. Fashion and apparel contributed nearly 60% of this expansion.
