As we look ahead at 2022, D2C brands will continue to grow, with leading brands also launching their digital-first arms.
The Direct to Business (D2C) revolution is here. It is estimated that the size of the D2C market in India will cross the $100 billion by 2025. Currently, there are more than 100 million online shoppers in India. Needless to say, D2C business model is here to stay and grow.
As the Indian D2C market continues to explode, here are some of the notable shifts that will dominate the space in the coming years and beyond:
Mobile First Consumer: The shopping and buying behaviour of consumers have changed drastically over the last decade. Making purchases via mobile is the preferred mode for Indians today, considering the level of convenience and ease. No wonder brands in the D2C space are building a mobile first strategy and focusing their efforts on user experience optimization. Mobile will continue to rule the digital marketplace and brands will focus more on mobile centric customer approach and more brands will opt for their own official app in the future.
A Personalized Experience: Personalisation in the D2C space looks like using data to create content that people resonate with, recommendation based on purchase history, tailored and customised promotions and offers and offering customised services. Offering personalisation and a seamless customised experience will be a key factor for growth for D2C brands as it will result in low churn rates, higher acquisition rate, increase in the Lifetime Value of a Customer and contribute to a positive ROI.
Sustainability Matters: Consumers today care deeply not only about which brands they interact with, what products they purchase but also how their purchase affects the environment and the future at large. Sustainability is no longer a buzzword or a philosophy on a marketing brochure but have real life effects on consumer’s purchase decision. In the coming decade, more companies are expected to incorporate sustainability as their core pillars and into their practice.
Optimizing logistics to drive growth: One of the keys to success for a D2C brand is the ability to reach customers and deliver goods through hassle-free, quick delivery. No wonder D2C brands are opting the services of third-party logistics platforms for seamless logistics and operations. The role of third party logistics platforms are sure to grow in the days to come as they provide seamless service from inventory management, efficient last-mile delivery, integrated payment options to end-to-end fulfilment.
Omni channel Marketing: Omni channel marketing in the D2C space allows brands to create an integrated experience for their customers and redefine the way a consumer might be shopping and interacting with the company. Providing a seamless experience through innovative use of marketing channels and blend the digital and physical creates a unique, unforgettable experience for the consumers. Omni Channel marketing provides a better, integrated experience for customers and one can see more innovative use of it in the coming years.
Brand Stories and Promotion: Content is the bridge between a brand and a customers. A successful D2C brand treats its consumers as users and engages with it on various check points. For a successful brand, content is the core of marketing mix as not only can it engage, educate but can convert them to paying customers. Brand storytelling will grow. D2C brands will continue to communicate their philosophy, their products and offering, engaging with its audience through innovating brand partnership, storytelling, co branding and influencer marketing.
It is encouraging to see the immense growth of D2C business model over the years. In 2022, we expect D2C businesses to gain momentum, expanding of niche categories, new entrants and positive investments from investors. As we look ahead at 2022, D2C brands will continue to grow, with leading brands also launching their digital-first arms. As the market grows and evolves, technology and innovation will be key to building impactful brands.
Source: Business World