Tier 2, 3 Cities Drive 66% of New D2C Orders
ECONOMY & POLICY

Tier 2, 3 Cities Drive 66% of New D2C Orders

Tier 2 and Tier 3 cities accounted for 66 per cent of new direct-to-consumer (D2C) orders in FY 2026, according to a new analysis by Unicommerce.

The report said buyers from smaller cities also contributed 60 per cent of incremental gross merchandise value (GMV) in FY 2026 compared with FY 2025, highlighting rising demand beyond metro markets.

Overall, India’s D2C segment recorded strong growth, with order volumes rising 33 per cent and GMV increasing 32 per cent year-on-year. The findings are based on more than 400 million order items processed through brand websites on Unicommerce’s Uniware platform between April 2024 and February 2026.

Data from Shipway, the company’s logistics platform, showed return-to-origin (RTO) rates fell from nearly 39 per cent during the festive period in November 2025 to around 21 per cent by February 2026, indicating improved fulfilment efficiency and order verification.

The report also noted growing use of AI-led recommendations and chat-based interactions to improve product discovery and post-purchase engagement.

India’s D2C market, currently estimated at USD 10–12 billion, is projected to reach USD 60 billion by 2030, with future growth expected to be driven by operational efficiency, customer retention and technology-led experiences.

Tier 2 and Tier 3 cities accounted for 66 per cent of new direct-to-consumer (D2C) orders in FY 2026, according to a new analysis by Unicommerce.The report said buyers from smaller cities also contributed 60 per cent of incremental gross merchandise value (GMV) in FY 2026 compared with FY 2025, highlighting rising demand beyond metro markets.Overall, India’s D2C segment recorded strong growth, with order volumes rising 33 per cent and GMV increasing 32 per cent year-on-year. The findings are based on more than 400 million order items processed through brand websites on Unicommerce’s Uniware platform between April 2024 and February 2026.Data from Shipway, the company’s logistics platform, showed return-to-origin (RTO) rates fell from nearly 39 per cent during the festive period in November 2025 to around 21 per cent by February 2026, indicating improved fulfilment efficiency and order verification.The report also noted growing use of AI-led recommendations and chat-based interactions to improve product discovery and post-purchase engagement.India’s D2C market, currently estimated at USD 10–12 billion, is projected to reach USD 60 billion by 2030, with future growth expected to be driven by operational efficiency, customer retention and technology-led experiences.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code