Currently, just 2% of power shoppers out of India’s 958 Mn internet users account for 60% of the country’s ecommerce GMV
Power shoppers are high-intent, high-spending consumers who prefer shopping directly from D2C brands for convenience and personalisation
High-intent shoppers are now emerging from Tier II and III markets, with widespread UPI adoption, social media-led brand discovery, and rising discretionary incomes among digitally native Gen Z buyers
India’s ecommerce market has grown into a $165 Bn industry in just over a decade, but its growth remains heavily concentrated among a small set of consumers. Currently, just 2% of power shoppers out of India’s 958 Mn internet users account for 60% of the country’s ecommerce GMV, according to Inc42 Datalabs’ ‘D2C 3.0: The Next Big Wave in Indian Ecommerce Report 2026.’
This means that despite a total 350 Mn online shoppers recorded over time, only 19 Mn account for over half of the total spends recorded by ecommerce and D2C platforms.
Power shoppers are high-intent, high-spending consumers who prefer shopping directly from D2C brands for convenience and personalisation. They are digitally native, comfortable with online shopping, and tend to place frequent, high-value orders. They contribute disproportionately to premium D2C segments.
While this poses concentration risks for D2C brands competing for the same set of high-frequency buyers, it also presents a major opportunity to upgrade the broader base of online shoppers into high-value consumers through new acquisition and engagement models.
Low Intent To High Frequency
“Shoppers with high ecommerce spends range across staples to discretionary categories. While staples and daily FMCG purchases have largely moved to online channels, high-value discretionary spends like jewellery, luxury products and premium home products straddle across online and offline channels,” according to Rishav Jain, MD and co-lead of consumer tech and retail at Alvarez & Marshal.
High-intent shoppers are now emerging not just from metro cities but also Tier II and III markets, where widespread UPI adoption, social media-led brand discovery, and increasing discretionary incomes among digitally native Gen Z buyers are pushing the popularity of online shopping.
While omnichannel strategies may work well in metros, the relative lack of organised offline retail in smaller cities is expected to drive incremental ecommerce GMV growth from these geographies. As a result, brands will need more accessible pricing, distribution, and product strategies to capture scale in emerging markets.
“Discovery of new brands now happens largely through digital content, which is driving deeper ecommerce penetration beyond the top categories. Ecommerce also democratises access for consumers, making it a preferred medium,” said Yash Dholakia, partner at D2C-focused investment firm Sauce.vc.
According to Dholakia, daily consumption categories such as groceries and medicines, along with low-frequency categories like home improvement, remain significantly underpenetrated online, creating large opportunities for brands solving category-specific problems. He added that brands can also adopt hybrid models where relevant, combining offline experiences with digital transactions and customised supply chains.
Capturing A Disloyal Cohort
However, capturing Gen Z consumers is increasingly becoming less about acquisition and more about retention. The cohort is characterised by relatively low brand loyalty and high expectations around convenience, speed, aesthetics, and experience.
This is pushing brands to focus more aggressively on strategies such as community building and influencer-led marketing to engage a consumer base that values premium experiences as much as pricing.
“Few important indicators of strong brand strength for new-age brands are repeat purchase and organic brand search. These coupled with low CAC and high share of own website purchase make a powerful case for brand love and product acceptance. Most brands get initial scale through push-based customer acquisition and trials but find repeat based profitable sales sustenance difficult,” Jain said.
This is due to a number of factors, including a lack of meaningful differentiation beyond branding, overdependence on paid customer acquisition, weak unit economics and inability to scale distribution beyond one channel.
Brands need to address these issues to turn Gen Z consumers into users who place repeat orders.
“D2C brands can also play a very important role by introducing consultative selling in some high-value categories and solving for trust gaps in large-ticket segments,” Dholakia said.
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