D2C brands in India: How non-metro demand drives growth

The move: D2C brands are using marketplaces to scale beyond metros

Direct-to-consumer brands across India are using marketplace platforms like Flipkart for regional distribution and product development, as well as to reach demand outside major metropolitan hubs. Flipkart shared customer and sales data during a round table discussion held on July 24, 2026.

The shift spans wellness, skincare, and healthy food. Kapiva gets roughly 66% of its sales on the platform from Tier III cities, while over 70% of its Gen Z shoppers live in Tier II and III markets. In beauty, non-metro regions account for over half of total category demand on Flipkart and two-thirds of beauty search queries. For skincare brand Plum and healthy snacking company Open Secret, Flipkart’s nationwide logistics network has made reaching smaller towns more predictable.

What the D2C brands do

Kapiva sells Ayurvedic products, Plum operates in skincare, and Open Secret makes healthy snacks. Platform search behaviour and customer demographics are replacing traditional focus groups for product strategy.

Gen Z makes up nearly 60% of beauty buyers on Flipkart, and more than 60% of these young shoppers start their search with specific ingredients such as vitamin C or niacinamide instead of a brand name. That demand is reflected in year-over-year increases of 123% in face wash sales, 120% in gel moisturizers, and over 80% in face serums.