Summary:

The direct-to-consumer (D2C) environment in India is changing significantly, with Tier 2 and Tier 3 cities emerging as important development engines. These smaller cities are predicted to provide over 66% of new orders in FY26, according to a Unicommerce analysis, indicating a shift away from metro-led demand. Due to improved digital access, expanded logistics, and increased discretionary incomes, this growth is driving a 32% increase in gross merchandise value (GMV) and a 33% increase in order volumes.

With the D2C market expected to reach Rs. 5.58 lakh crore (US$60 billion) by 2030, the trend is altering India's online retail future. Aspirational demand, brand preference, and internet penetration all contribute to growth. The story of India's e-commerce growth today revolves around Tier 2 and Tier 3 cities.

Source: IBEF

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