Shopify claims it is opening its infrastructure that powers retailers globally with Commerce Components by Shopify (CCS), a composable stack for enterprise retail. It will provide them access to the company's tech elements like its checkout feature, which Shopify claims converts 72 per cent better than a typical checkout and 91 per cent better on mobile.
Moreover, it will have flexible APIs to build dynamic customer experiences that integrate seamlessly with a retailer's preferred back-office services.
"We've always approached innovation at Shopify by anticipating what retailers need, then providing those solutions," said Harley Finkelstein, president of Shopify. "CCS opens our infrastructure, so enterprise retailers don't have to waste time, engineering power, and money building critical foundations Shopify has already perfected. Instead, it frees them up to customize, differentiate, and scale."
American brand Mattel will be one of the first enterprise retailers to use CCS, bringing their entire portfolio of brands to Shopify.
Sven Gerjets, chief technology officer of Mattel, said, "We first worked with Shopify on a project called Mattel Creations, a platform for creators to reimagine the most iconic toys in the world. Creations empowered Mattel to move quickly, meet our customers where they are, and, most importantly, leverage Shopify's infrastructure to scale globally. It was hugely successful, and we're excited to transform our brand offerings using Commerce Components."
Shopify has been popular with many direct-to-consumer (D2C) brands in the country, which are carving a niche for themselves. According to a Statista report, India's total addressable D2C market is expected to grow by over 15 times from 2015 to 2025.
In 2020, the total addressable D2C market was valued at $33.1 billion. By 2025, the total addressable D2C market is forecast to grow almost threefold and reach $100 billion, with fashion and accessories leading as one of the largest D2C segments in India.
"Three important shifts in the sector are driving this growth. Firstly, Indian brands are embracing direct-to-consumer commerce, with once small or non-existent categories like fitness accessories, gardening equipment, and costume jewellery now becoming large enough to have brands born online first. Secondly, many traditional brands, which did not take e-commerce seriously, have started to invest in their online storefronts to attract and engage new consumers," said Bharati Balakrishnan, country head and director, India, Shopify.
Retailers today are increasingly moving to the digital landscape, where their customers are in a bid to build a direct connection and consumer stickiness, especially with a recession looming in the background. Ottawa-based Shopify believes it can empower D2C brands in India to meet evolving customer expectations from brands including Allbirds, Gymshark, Heinz, Tupperware, Netflix, Fablestreet, Go Colors, Yoga Bars, Duroflex, Le15, Sugar Cosmetics, Boat Lifestyle, LensKart and Vaadham Teas.
