The ABCD of building the D2C brands of tomorrow, Retail News, ET Retail
The proverbial battle for the wallet of consumers is on. This could be a defining detail as this battle unfolds.
Leading brands offered their perspective on some of the ingredients essential to the success of Indian D2C brands. At the heart of this were the spread of the Internet and the opportunities for interaction with consumers through digital channels. The established brands, all categories combined, were always trying to learn new ways of working. Such has been the aggressiveness of some of the smaller brands as they built their niche that traditional brands sometimes take their breath away. Indeed, the new brands have succeeded in changing the rules of engagement, trying to tip customers in their favor.
Find the right clients
Even as the consumer begins their search for a product online, agile D2C brands have found ways to track it down.
D2C brands have successfully communicated the characteristics of their products and services in the minds of consumers. The challenge for companies will be to position their offer in the mind of the end buyer who must have the clear message when making the purchasing decision.
âThe biggest and the biggest learning for us is how to give our category consumer a better story to buy from you. There are so many options in our category and I think digital has given us a path to tell us exactly what a consumer is looking for, âsaid Manish Chowdhary, Co-CEO, WOW Skin Science.
Bewakoof.com created an online destination for men’s and women’s fashion brands even as internet penetration began to grow. He thought he was reaching customers in a way incumbent brands had never imagined. The result – a strong customer connects a huge online following for the brand.
âThe way we look at the industry is that at its core it’s always going to be about the product. In addition, there will be experiences that have never been possible offline. But now, due to the nature of the Internet, they are possible, âsaid Prabhkiran Singh, founder and CEO of bewakoof.com.
New categories of online shoppers
New categories were identified by D2C brands where consumers could be wooed in ways not previously imagined. Among other clothing products, Clovia sells underwear, which accounts for 60 percent of its revenue. But its activity had to be adapted to the needs of women for whom the need for underwear varies according to the regions of the country.
âFor once, everyone is talking about a product, everyone is talking about identifying and solving the consumer’s problem. I think in our category it was all the more acute because it is very, very unique, âsaid Pankaj Vermani, Founder and CEO of Clovia.
This rate of change is also evident in the creation of the company. Starting a business is much easier, not only to start, but even to grow.
âPreviously, companies had to have services in their offices, today there are hosted platforms around the world. Previously you needed IT team members, today you don’t. There is an on-demand economy of getting work done immediately when you want it, said Vargab Bakshi, Head of Partnerships at Shopify India. When the D2C company is ready to serve customers, as soon as the customer has ordered their product, engagement takes a step forward.
âEngage with customers. D2C companies must adapt to this new era of communication. Big brands like Amazon, Flipkart do it, it’s very easy for small brands to do it too. The important thing – interacting with customers from the moment the customer orders their products, âsaid Rhitiman Majumder, co-founder of Pickrr.
For small manufacturers who have launched their own D2C brands, the situation changes dramatically. Several manufacturers are now realizing that they too can launch their own brands, even if they are not established in large cities.
âAs soon as you own the manufacturing of the product, you are able to control the innovation very closely. You develop a very different view of the product, âsaid Ankit Garg, co-founder and CEO of Wakefit.
If the product is good and consumers want to experience it, developing the distribution strategy might be the easiest part of the puzzle. The Internet is changing consumer demand and several companies now offer the possibility of contacting this consumer in a plug & play model.
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