D2C 2.0 — WHAT WILL KEEP THE FIRE BURNING

Introduction

In a recent panel discussion, industry leaders gathered to share their insights on the evolving landscape of D2C (Direct-to-Consumer) brands in India. The conversation centered around the transition from a purely D2C focus to an omnichannel approach, exploring the unique challenges and opportunities this brings. The panel featured notable entrepreneurs, including Harel Salot from The Sleep Company, Abijit from Up Coffee, Chippy Meta from Bombay Shirt Company, Lavana from Zivame, Sah from SO Healthcare, and Shankar from Plum.

The Need for an Omnichannel Approach

As customers increasingly expect seamless experiences across channels, the shift towards omnichannel strategies has become essential. Harel Salot emphasized that while the D2C model is ingrained in their company culture, entering the offline space has significantly boosted their Average Order Values (AOVs) and retention metrics. By owning both online and offline experiences, brands can foster stronger bonds and customer loyalty.

Abijit, representing Up Coffee, shared that in the Food and Beverage (F&B) sector, providing an actual product experience significantly enhances brand relatability. The company focuses on convenience, ensuring customers can grab quality coffee on-the-go and have it delivered as well.

Chippy Meta discussed the unique challenges of custom-made clothing, noting that while online channels serve as a first discovery point, actual conversions often happen in-store. As Bombay Shirt Company expands, it aims to educate consumers on the benefits of custom tailoring while challenging existing shopping norms.

Lavana from Zivame noted her brand's journey from an online-only presence to a robust omnichannel platform. The shift allowed them to address the diverse needs of their customers and expand reach effectively.

Sah from SO Healthcare expressed the importance of establishing product-market fit through offline channels, having built significant traction in general trade before venturing into e-commerce and quick commerce. The brand's focus on addressing the dissatisfaction with existing products has led to healthier market penetration.

Shankar from Plum highlighted the necessity of adapting supply chain strategies to align with quick commerce, ensuring that product availability meets consumers' immediate demands.

Investor Sentiment and Future Prospects

As D2C brands mature, investor sentiment is shifting. Investors are becoming more selective, emphasizing sustainable growth and unit economics while remaining open to opportunities. The panelists agreed that harnessing customer insights and focusing on niche markets can unlock significant value.

With discussions around funding for startups, Abijit shared that early-stage entrepreneurs need to be clear about their objectives and focus on building a sustainable business foundation before seeking external investments.

As the conversation drew to a close, the panelists discussed the role of legacy companies partnering with D2C startups. Lavana explained how partnerships can accelerate growth through developed retail networks, while also necessitating agility in adapting to corporate processes.

Conclusion

The panel highlighted that the future of D2C lies in understanding customer needs and capabilities. By evolving with a focus on omnichannel strategies and aligning with investor expectations, brands can ensure sustained growth in this dynamic landscape.

Keywords

D2C, omnichannel, customer experience, brand loyalty, investment, product-market fit, retail expansion, supply chain, custom clothing, quick commerce.

FAQ

What is the significance of an omnichannel approach for D2C brands? An omnichannel approach allows brands to create seamless experiences across different platforms, enhancing customer loyalty and retention.

How do brands ensure uniform pricing across various sales channels? Brands must establish pricing strategies that allow for consistency across e-commerce, general trade, and retail while keeping customer expectations in mind.

What role does consumer experience play in the growth of a brand? Consumer experience is critical for building relationships; positive experiences lead to higher repeat purchases and long-term customer loyalty.

How important is understanding gross margins in building a D2C business? Gross margins are crucial as they determine the financial viability of a product and must cover all operational costs. A focus on rupee gross margin can inform sustainable expansion strategies.

What should entrepreneurs consider when seeking investment? Entrepreneurs should focus on building a sustainable business model, maintain clarity on their objectives, and demonstrate solid product-market fit before seeking external funding.