India's direct-to-consumer (D2C) growth is powered by Tier 2, 3 cities, with 66% new orders in FY26
- IBEF
- April 21, 2026
India’s direct-to-consumer (D2C) ecosystem is witnessing a structural shift, with Tier 2 and Tier 3 cities emerging as the primary growth engines. According to a report by Unicommerce, these smaller cities are expected to contribute nearly 66% of new orders in FY26, highlighting a clear shift beyond metro-driven consumption. This surge is driving a 33% increase in order volumes and a 32% rise in gross merchandise value (GMV), reflecting strong demand expansion and deeper market penetration. The trend underscores how improving digital access, logistics networks, and rising disposable incomes in non-metro regions are enabling D2C brands to scale rapidly across India.
The momentum from smaller cities is also shaping the long-term outlook of India’s online retail ecosystem. The D2C market is projected to reach Rs. 5.58 lakh crore (US$ 60 billion) by 2030, supported by increasing internet adoption, aspirational consumption and the growing preference for branded, niche products among consumers in emerging regions. This shift is encouraging brands to tailor offerings, pricing strategies and supply chains to cater to diverse, geographically dispersed demand. As a result, Tier 2 and Tier 3 cities are no longer peripheral markets but central to India’s digital commerce growth story, driving inclusivity and expanding the country’s consumption base significantly.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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