MAM
GUEST ARTICLE: How D2C brands are using metaverse and how it will transform virtual commerce
Mumbai: India’s direct-to-consumer (D2C) brands have grown tremendously during the pandemic and in the post-pandemic era, with a large cohort of consumers moving to digital in search of innovative products and more engaging and immersive experiences. The pandemic caused D2C brands to become super popular, which in turn forced large and established companies to jump on the D2C bandwagon. According to KPMG, there are over 800 D2C brands in India today, and the D2C sector, currently worth $44.6 billion, is expected to touch $302 billion by FY 2030.
D2C brands target young consumers, millennials and Gen Z, delivering personalisation at scale and increasing innovation in the virtual world and tap into the growing global virtual-commerce market, estimated to be worth $190 billion by CB Insights.
With technology becoming more affordable and sophisticated, D2C brands are at an advantage. In a controlled, immersive virtual environment, brands can offer customers the complete – albeit virtual – brand experience and deliver a lasting impact. For example, a virtual store in the metaverse is a brand experience in itself, with the brand mnemonics, signature sounds, layout, and colours. Consumers also get the option to interact directly with brand representatives. This enhanced brand experience goes a long way in building brand trust.
The metaverse is also good at customising experiences. Great customer service builds brand loyalty and customer retention. By analysing vast amounts of data on a customer’s interactions in the metaverse, brands can predict which products, solutions, and experiences individual customers would prefer and like. D2C brands are in a better position to serve better without being intrusive, thereby building and elevating the overall brand experience.
Popular homegrown D2C brands like Super Smelly, Argatin Keratin, Ochre Athletica, Indus People, and Zorin Furniture are looking to disrupt the market with their product positioning and personalised consumer experiences.
They have also taken bold steps to connect with their consumers in the metaverse and are working on innovative ways to enhance the virtual brand experience. They are already offering products and experiences and enabling commerce in the virtual world.
The metaverse is growing at a fast pace. In the first six months of 2022 alone, globally, over $120 billion has been invested in building metaverse infrastructure and technology. Moreover, the metaverse is steadily becoming an important component in the omnichannel sales strategy of companies.
Marquee brands such as Gucci have debuted in the virtual world with the metaverse. Gucci created Gucci Garden, a digital replica of the real-world installation (called Gucci Garden Archetypes) in Florence, Italy. Similarly, Sotheby’s, the world’s largest broker of art and luxury goods, created a metaverse gallery showcasing curated virtual art houses.
According to McKinsey, 79 per cent of consumers active in the metaverse have purchased products in the recent past.
These numbers show the power of the metaverse as a selling platform. It’s important for D2C brands to identify the right platform to reach out to their target audience and have an interactive content strategy to engage them.
Importantly, the privacy and safety of consumers have to be at the centre of every consumer-facing engagement that brands plan for consumers in the metaverse.
The author of this article is VOSMOS co-founder & Kestone president Piyush Gupta.
AD Agencies
Omnicom Q4: Posts big revenue gains amid restructuring
Company trims underperforming units and launches $5B share buyback to reward investors.
MUMBAI: Omnicom has decided that in the world of global advertising, it is better to be a big fish in an even bigger pond. The marketing powerhouse, which recently swallowed its rival IPG, has kicked off 2026 by showing the market that it is not just buying growth – it is engineering it. In a series of bold strategic manoeuvres, the group has doubled its projected cost-savings target to a whopping $1.5 billion over the next three years.
The fourth-quarter results for 2025, released on 18 February 2026, paint a picture of a company in the midst of a massive structural makeover. Reported revenue for the quarter shot up 27.9 per cent to $5,528.8 million, a figure heavily bolstered by the first full month of IPG’s operations under the Omnicom umbrella. For the full year, revenue reached $17,271.9 million, marking a 10.1 per cent increase as the company integrated heavyweights like Acxiom Real iD and Flywheel Commerce Cloud into its next generation Omni platform.
However, bigger does not always mean tidier. The group reported a Gaap net loss of $941.1 million for the final quarter, or $4.02 per diluted share. This was primarily due to a massive $1.1 billion bill for severance and real estate repositioning, alongside a $543.4 million loss on the sale of non-strategic businesses. When these one-off integration headaches are stripped away, the underlying performance looks far more robust, with adjusted net income reaching $607.7 million and earnings per share of $2.59, comfortably ahead of the prior year’s $2.41.
The group is also trimming the fat elsewhere. Management has identified underperforming and non-strategic units representing approximately $2.5 billion in revenue for exit or sale. Meanwhile, smaller majority-owned markets bringing in $700 million are being moved to minority positions. This portfolio pruning is designed to focus the New Omnicom on higher-growth areas like media, creative content, and data-driven consulting.
Investors, it seems, are being kept sweet with a significant return of capital. The board has approved a fresh $5 billion share repurchase program, initiating an immediate $2.5 billion accelerated buyback. This comes on top of $549.6 million paid out in common dividends during the year.
Performance across the sectors was a mixed bag but generally positive in the heavy-hitting divisions. Media and advertising revenue surged 34.4 per cent in the fourth quarter to $3,322.6 million, while public relations grew 12.4 per cent to $500.8 million. On the flip side, branding and retail commerce saw a 7.0 per cent dip. Regionally, the US remains the engine room, with revenue jumping 51.9 per cent to $2,869.1 million in the quarter, while the UK saw a respectable 18.8 per cent rise to $533.2 million.
With a total debt of $9.1 billion following the IPG acquisition, the group is leaning on its cash-generative nature to keep its investment-grade credit rating intact. Free cash flow for the year stood at $2,226.1 million, up from $1,964.7 million in 2024. As the company moves into 2026, the focus is firmly on the Connected Capability model, essentially ensuring that its global army of talent is pulling in the same direction, and more importantly, within a much leaner budget.
