Digital-first brands are now considered the most successful companies in the world. Compared to traditional brands, digital-first brands acknowledge that consumers have the power to determine the performance of the brand, be it via apps or websites on mobile devices or desktops.
Software, mobile apps, the metaverse, streaming services, and even luxury apparel are just some of the digital-first brands in the market today. Globally, the market continues to increase its value, with India expected to be one of the biggest digital-first brands market in the world by 2030. According to a study by Redseer, the Indian market is expected to provide opportunities up to US$ 250 billion by the year 2030.
As businesses constantly develop to cater to the needs and demands of their consumers, the report suggests that “a new breed of online shoppers have emerged, and they’re asking for more.”
The report highlights how India can achieve this. First, Redseer believes that the online retail market is moving towards a massive growth phase on the back of the ever-expanding penetration to smaller cities in the subcontinent. This includes the increase in internet connectivity and a growing mobile-savvy population that will drive the online market.
Secondly, the growth in a mobile-savvy population is leading to an increase in social and video commerce. New retail channels are being created for an aspirational new India, which is supported by close a US$ 1 billion of funding in 2021. Increasing adoption of smartphones for consumers in Tier 2 and 3 cities is making sure this continues.
With mobile adoption increasing, video commerce is quickly proving to be successful in the market. Consumers are increasingly turning to video to learn about new products, compare products, and share experiences. Video commerce enables brands to tell their story in a whole new way, in a way that is engaging and entertaining. It also further helps them to build a relationship with the consumer, which ultimately strengthens the brand.
As such, it is not surprising why digital-first brands are finding it increasingly rewarding. With the right digital-first brand, an organization can easily be on its way towards a piece of the US$ 250 billion opportunity. Redseer believes that with the rise of these new retail channels over 2021-30, many more digital-first brands will scale exponentially this decade.
“The country’s rapidly growing digital-first population, growing internet usage, and expanding digital-first economy are expected to drive significant growth for digital-first brands. Already, digital-first brands in India generate more revenue than legacy brands, with the size of this opportunity expected to increase significantly over the next decade. This presents an enormous opportunity for digital-first companies to tap into the country’s rapidly growing digital-first population, expanding internet usage, and growing digital-first economy,” stated the report.
India is just one of the many markets in the world that are seeing digital-first brands become a dominant player in the economy. With the rise of new retail channels, both video and social commerce, not only in India, but in China, and Southeast Asia as well, consumer experiences in retail are evolving at an unprecedented pace.
Hence, it is not surprising why digital-first brands are finding it increasingly rewarding to engage with consumers in these channels and offer them a seamless, omnichannel experience.