From ROPO to personalisation: What trends drove D2C in 2024?

India's D2C industry has entered a transformative phase in 2024, solidifying its position as a key driver of the country's digital economy.

With rapid advancements in e-commerce infrastructure, increased internet penetration, and a growing preference for personalised shopping experiences, D2C brands are rewriting business rules.

Ripal Chopda, CMO, The Sleep Company explained that the D2C industry in India is growing rapidly and is anticipated to reach an addressable market worth $100 billion by 2025. This growth has been fuelled by changing consumer preferences, increased funding, government support, and technological advancements.

From leveraging social commerce to adopting cutting-edge technologies like AI-driven recommendations, these brands are not only catering to urban millennials but are also making significant inroads into Tier-II and Tier-III cities.

“With these dynamics at play, the D2C market in India is projected to have steady growth with forecasts showing it will reach $61.3 billion by 2027. The growth is also particularly high in the fashion and lifestyle sectors,” added Ashutosh Valani, Co-founder, of Renee Cosmetics.

This year marks a turning point where innovation, consumer trust, and scalability converge, propelling the D2C ecosystem into uncharted territories of growth and resilience.

Top trends that dominated D2C this year

Personalisation

In 2024, personalisation emerged as a cornerstone for India’s D2C brands , shaping how they engage with their audiences. Leveraging data analytics, artificial intelligence, and consumer insights, brands moved beyond one-size-fits-all approaches to deliver tailored product recommendations, curated shopping experiences, and hyper-targeted marketing campaigns.

“A notable trend is the shift in consumer preferences toward customised goods and services, leading many D2C brands to adopt tech-enabled solutions to make processes efficient to cater to individual needs,” Chopda said.

Valani said that many D2C brands adopting tech-driven solutions to streamline processes and meet individual needs.

Qcomm

D2C brands deepened their integration with quick commerce platforms, creating a seamless ecosystem for on-demand shopping. With quick commerce giants offering delivery within minutes, D2C players tapped into this efficiency to ensure faster access to their products, especially in categories like food, beverages, cosmetics, and essentials.

For SMOOR Chocolates, the rise of quick commerce platforms proved crucial, and they capitalised on this trend by introducing delivery-friendly products. Kanchan Achpal, CMO, SMOOR Chocolates agrees that these efforts strengthened SMOOR’s foundation.

“Especially, the festive season saw a surge in last-minute gifting, with customers turning to quick commerce platforms,” said Achpal.

ROPO (Research Online Purchase Offline)

Research Online, Purchase Offline (ROPO) trend emerged as a defining strategy for D2C brands in India, blending the best in digital and physical retail experiences. ROPO refers to consumer behaviour where buyers thoroughly research products online before making in-store purchases, reflecting the evolving expectations of informed shoppers.

D2C brands have adapted to this trend by investing in omnichannel strategies that seamlessly integrate their digital and offline footprints.

Renee Cosmetics highlighted the importance of a balanced approach, stating, “A balanced focus both on digital and physical presence has been crucial for success this year.” This dual strategy allowed brands to capture the attention of tech-savvy consumers online while ensuring a tangible, experiential touchpoint through physical retail.

Similarly, The Sleep Company leveraged the ROPO trend to not only boost its digital presence but also foster meaningful offline connections. In their own words, “We aim to enable people to improve their sleep quality and general health by promoting meaningful connections offline.”

2024 marketing strategies for the win

Sleep Company achieved success through a combination of innovative campaigns, omnichannel expansion, and strategic celebrity partnerships.

“Our omnichannel approach, seamlessly integrating physical and digital sales, proved highly effective. We leveraged a diverse media mix, including print, digital, and electronic platforms, to maximise outreach. Print campaigns were hyper-localised, tailoring content to resonate with specific city audiences rather than taking a generic national approach. This strategy ensured stronger connections with local markets,” mentioned Chopda.

Their celebrity associations played a pivotal role in cutting through the creative clutter and building trust.

For Renee, growth came from successful social media campaigns and effective strategies. The brand was present online and offline across platforms like Amazon, Flipkart, Nykaa, and Myntra, as well as more than 1,200 shop-in-shop stores across India. Product development was at the core of its marketing strategies, including innovative products and in-depth knowledge of consumer needs, shared the brand.

SMOOR maintained its luxury appeal while ensuring accessibility, offering premium products across various price points. Additionally, from influencer partnerships to brand collaborations, SMOOR extended its reach, enhancing credibility and customer engagement, according to Achpal.

Increase in ad spends

Renee Cosmetics’ Valani revealed that 2024 was even more dynamic and impactful than 2023 and to enhance their reach and engagement, they increased the ad spend by 50%, strategically investing in high-impact channels. He said, “This boosted visibility contributed to an impressive 100% growth in business, underscoring the success of our efforts”.

Chopda shared that The Sleep Company’s ad budget last year was approximately ?80-85 crore, and this year saw a significant 15% increase, bringing the budget to around ?100 crore.

Ad spend in FY 2024 grew by 10%, with SMOOR focusing on performance marketing, influencer tie-ups, experiential events and hygiene marketing. These initiatives increased brand awareness and created immersive customer experiences.

Challenges

One of the key challenges in 2024 included smooth onboarding of AI-powered innovation like SensAI into the product lines without compromising ethical AI and data privacy, for The Sleep Company. “Additionally, navigating the ROPO trend required us to refine our digital marketing strategies, leveraging targeted campaigns to bridge the gap between online engagement and offline conversions,” Chopda said.

For Renee, the challenge was to manage the rapid growth, which impacted their ability to maintain a 100% fill rate for orders. “We addressed this by streamlining supply chain processes, enhancing inventory management systems, and scaling up production capabilities,” as per Valani.

“SMOOR faced the crisis of rising cocoa costs but tackled it by optimising processes, launching bite-sized snacking chocolates, and implementing strategic price adjustments,” Achpal said. Also, while quick commerce reduced website traffic, SMOOR introduced exclusive online products, driving customer loyalty.

What’s next?

In keeping with the industry’s mood, in 2025 Renee plans to make a more significant digital presence along with stronger offline connections by developing an omnichannel approach, using the platforms of e-commerce, and growing shop-in-shop store networks.

In 2025, we will continue further innovating in the comfort-tech space, with advancements toward further upgrading our AI-powered sleep products and continued expansion of our SensAI ecosystem to deliver even more personalised holistic wellness,” highlighted The Sleep Company executive.