The other segments that have reported strong growth on the brand website are Health & Pharmaceutical with 84.8% YoY growth and 67.7% YoY growth for FMCG in FY 22. The rising phenomena of D2C has helped the fashion segment to continue its growth despite being the most mature segment. Fashion & accessories have witnessed 89.5% YoY growth on brand websites in FY 2022, as opposed to a marketplace growth of 52.2%.

The market has changed now, and D2C brands will continue to be forced to stay hyper-focused on customer acquisition, in order to sustain and grow. With the advancements in technology, and changing consumer habits, companies need to drop the spray and pray approach and implement data-backed strategies effectively. Here are some ways that D2C brands can decrease CAC by utilising modern day technologies:

Lead Generation
The conversion rates depend highly on the response rate. With traction coming in from so many channels, it becomes hard for agents to connect with every lead individually, that’s where automation comes in. Chatbots and live messages can help engage with customers without any delays and give you more leeway.

Moreover, live chat solutions also enable multiple conversations at the same time. It is the perfect solution to offer personalisation without compromising on the speed or conversion rates.

Product Recommendations
AI has been an effective tool for various industries, and D2C can also use it for their own advantage. Technologies such as AI can help decipher data to anticipate customer behaviour and then make recommendations about the products and services, depending on their needs.

Big Data and CX
Similarly, data can also help build personalisation and enhance customer experience. Data analytics has various touch points such as customer preference, predicted spending etc. Big data can help reduce the guesswork and implement strategies that are more likely to bring in sales and conversions.

Sales Automation
Automation has been used by marketing departments all over the world, but there are barely any brands who automate their sales department. While complete automation of sales is still far fetched, some sales positions can be automated.

Improvements in AI have made it possible to reduce labor costs. If a brand implements this strategy, they can use the savings to enhance their business model and make it more robust and efficient. Getting more out of your existing staff can also help in reducing CAC and delivering better customer experiences.

Capitalise on Social Media
D2C brands are tech savvy but so are the customers. Now, instead of making a purchase blindly, consumers want to know more about the products, focus on the features, and then buy. There are customer engagement tools present now that brands should consider investing in. These tools use the social media channels and messaging apps to communicate with the potential buyers and help them find what they are looking for. Social media is a powerful tool not only for brand presence but also for increasing sales and engagement.

-Sandeep Kumar

The post D2C: The Buzz is Here to Stay first appeared on PHYGITAL RETAIL CONVENTION (PRC).

Maybe, we don’t yet know of these entrants in the D2C hemisphere. They are companies that have entered internet first and are now ramping up their general trade presence. Some D2C brands like Mamaearth, Sugar Cosmetics, Juicy Chemistry, Ustra are very much mainstream now.

So while the new entrants use technology, their deep VC funded resources and their digital marketing muscle to increase their market share, how do the traditional brands do it? For one, traditional brands, like those mentioned earlier are definitely are not giving up.

Traditional businesses realize the potential that the online market has, and are now pivoting to create their own proposition. Being legacy companies, they have the additional challenge of managing their existing distribution eco-system along with that of the e-commerce system.

But the dynamics of retail distribution for both are poles apart. Retail distribution of traditional companies thrive on mass scale, lower margins, while the e-commerce equation is all about speed, digital promotion and delivery of units. Traditional business houses hence need to balance the interests of both ends of the spectrum, avoid getting into channel conflict. They have certain factors that are in their favour viz:

• A known brand
• Various stock keeping points across the country
• Organizational team to tap into

The need now is to tweak the system to prepare for the fast paced e-commerce train.

Order fulfilment in supply chain of traditional businesses
Traditional businesses can use the new-age fulfilment companies that have tech integrations with marketplaces and shipping companies, and have automated picking and packing processes. A hybrid omnichannel model by which stock is picked up from nearby existing stock keeping point when an order is placed by an end customer would possibly be ideal for such enterprises. They can rely on these new-age 3PL companies to manage the inventory, packaging process, doorstep delivery all at once.

An e-commerce business moves fast, hence the need is to have a fulfilment provider who can move at the same speed. In an established set-up that most of these businesses will have, the motivation is to set up fulfilment in-house as it may be convenient doing so. However, chances are that your business isn’t in a location that offers optimal costs as well as the processes are not tuned for that agility.

For the traditional enterprise, partnering with a fulfilment company will help them reduce their operating overhead costs. They would not need to spend a fortune creating a separate facility in packing supplies, shipping, hiring quality maintenance person, rent space for storage, and maintain inventory checklists and so on. The fulfilment partner can get the technology, experience, and industry leadership that can make their e-commerce business run effectively.

The post Distribution and Fulfillment: Conventional v/s D2C first appeared on PHYGITAL RETAIL CONVENTION (PRC).

New-age consumers want more than brand identity; they look for values that align with their own. Recent developments in the areas of athleisure, casual wear and sustainability have made consumers re-think their shopping habits. New brands, notably those in the D2C space, have smartly focused on these pain points and offered what customers have been looking for. Innovation and development in fabrics, availability of affordable products and most importantly, an enhanced customer experience are making these new brands more desirable over traditional denim brands.

While it is amply clear that customer retention is the need of the hour for denim brands, how are they ensuring this? Manjula Gandhi, Chief Product Officer, Numero Uno, says, “We always try to innovate and come out with products that match customer expectations. Combined with excellent customer service, be it in store or online, we strive hard to make our customers delighted. Secondly, we have a robust CRM programme that aims to connect with every customer, customise offerings and reward them from time to time.”

Lokesh Kataria, Chief Marketing Officer, Ace Turtle Omni Private Limited believes that loyalty is a subset of the love that consumers have for brand Wrangler. “We keep challenging ourselves to bring in the latest innovations in the product, its functionality and engagement for our consumers. This has been pivotal in retaining our consumers season after season and year after year,” he adds.

Now more than ever, it has become crucial for brands to dig deeper and formulate strategies to ensure that they successfully eliminate competition from their consumers’ mind. This is where customer loyalty programmes can add more benefits to the existing ones. Whether brands are trying to retain consumers or acquire new ones, loyalty programmes are proving to be an effective move.

By – Vedika Negi

The post Reward Loyalty to Retain Legacy first appeared on PHYGITAL RETAIL CONVENTION (PRC).

The post The future of D2C retail in India first appeared on PHYGITAL RETAIL CONVENTION (PRC).

Though the visibility of brands with quirky names is getting more and more prominent these days, this trend started a long back in India. Mostly D2C brands along with some successful brands in India started on their way to fame by registering with quirky and seemingly meaningless names. This not only helped them attract the eyes of the customers but also helped them hugely in making their brands relatable to the customers in their respected product categories. Brands like Myntra, Zivame, Jabong, Yebhi, KyaZoonga, etc. all sound seemingly meaningless but they all have meaning to some level. For example, Richa Kar, CEO of online lingerie brand Zivame said in an interview that the name of the brand was supposed to be Ziva which means radiance in Hebrew but due to the unavailability of that domain name they had to go for Zivame meaning “Radiant Me”, similarly Flipkart acquired Jabong was also named after the evergreen plant suggesting the youthfulness of the brand itself. At present several retail brands are also emerging in the market with more relatable names that are relatively easier to connect to than the names which were used by retailers before. Online grocery retail brand Zopnow (inspired by the word Shopnow); Food tech startup Tinyowl (inspired by Twitter and represents owl as a wise creature of night); online cloth and apparel brand Bewakoof.com, Cardekho, Cleardekho, Zepto, FoodDarzee, Timesaverz, Delhivery, etc. are some of the long lists of brands in India that have come up with quirky names.

But what’s in it for the retailers of India?

The brand name acts as the first point of contact for the customers with which they associate the product or service offered. So, coming up with a unique brand name is always of utmost importance. With today’s dynamic market and the customers being overwhelmed by the options that are available to them, a quirky and out-of-the-box name that people can easily relate to goes a long way when it comes to recalling the brand’s name. But one should keep in mind that the name should neither be irrelevant to the product or service offered nor should it be negatively perceived by customers. This is an ongoing trend that is proven successful by the number of startups rising as a unicorn in India and it is safe to say that it is going to stay for a while.

–Sayan Mukhopadhyay

The post Retailers benefit from desiness of quirky names first appeared on PHYGITAL RETAIL CONVENTION (PRC).

Organic ingredients, natural skincare, cruelty-free, vegan makeup, non-toxic, and the like are not new buzzwords in the beauty and personal care segment. The market is categorized into skincare products, makeup products, and bath and shower products. Among these, the market size of skincare is growing rapidly followed by beauty and makeup. The global demand for these brands forecasts strong growth. As per reports by Statista, the global market value for natural cosmetics and personal care is expected to increase from almost 34.5 billion dollars in 2018 to roughly 54.5 billion dollars in 2027. These data are proof of the growing importance of the natural and organic beauty market. Consumers globally want companies to take a stand on the social, cultural, and environmental issues close to their hearts. A report by Accenture reveals that 62% of consumers say their purchasing consideration is driven by a company’s ethical values and authenticity.

The growing concerns around ecological and environmental issues and the increase in use of social media have made customers more aware of the harmful effects of the chemical ingredients (like paraben, SLS, sulfates, etc.) on our skin if used for a longer duration. As people are becoming more aware they are shifting towards natural and organic beauty products.

With the rise in demand for natural personal care products, many brands are offering organic products to appeal to eco-conscious customers. Some of the major players in the segments are Khadi Natural, Just herbs, Forest Essentials, Biotique, Plum Goodness, etc.

With increasing consumer awareness and preference for natural beauty products over chemical products, the Indian ‘Beauty and Personal Care’ Segment provides huge opportunities but retailers need to keep pace with the ever-changing customer demands. Their approach should be more customer-centric and should be backed by research.

— Sadaf Anjum

The post Organic and Ethical Beauty Brands are on the Rise first appeared on PHYGITAL RETAIL CONVENTION (PRC).

Initially, when the D2C brands started their journey consumers were not relying on their products and services. The brands also had many challenges as they were in direct competition with the traditional brands which were in the market for so many years. 

Sameer Bhatia, MD and Founder, House of Candy explains, “Direct selling to the consumers is challenging as the brands tend to have little less visibility in terms of distributorship. But we have already made a mark in the FMCG distribution sector through modern trade stores namely, FoodHall, Super99, Modern Bazaar, Spar and Big Bazaar.” 

Abhishek Negi, Co-Founder- Eggoz, a brand that started in 2017 which provides nutritious-eggs, talks about the hurdles that their brand faced “The first hurdle faced by the consumers is the brand awareness.  If you’re starting out a brand and selling directly to customers, you need to spend a lot of money towards brand awareness. Other hurdles include small order quantities, returns, tight delivery timelines, customer expectations, complaint handling, and product explanations.” 

Madhav Kota, Founder of iGRiD, a brand that is providing home-essential items through digital channels explains, “In India, building trust is everything. All new D2C consumer brands spend considerable time and money building consumers’ faith in their products, as a brand finding the niche which identifies with the consumer and competing against existing brands are the biggest hurdles. D2C brands are also getting the advantage as the advent of e-commerce is there, and it is faster to reach the customers.”

The post FMCG players overcoming challenges to standout in the market first appeared on PHYGITAL RETAIL CONVENTION (PRC).

In the simplest terms, a brand community showcases brand loyalty at its best. People present in the  brand community are emotionally invested as they will buy from your company, digest the content, tell their friends and family about your company, and more. The brand community is built in a way to create brand awareness. Prathamesh Krisang, Co-founder and Chief of Growth, Magicleaf, a brand that sells stevia drops made from all-natural ingredients harped on the idea of creating a community of customers “Yes, we are very serious about community building. We have already piloted our No Sugar Club with a few champion customers and will roll out this community to a wider audience soon.”

He further added, “Community building has become essential right now. With the rising cost of acquiring new customers and the low entry barrier to starting a D2C brand, it is essential to nurture solid champions who love your brand and what it stands for.”

Priyanka Salot, Co-founder, The Sleep Company that provides SmartGRID mattress which has a digitally native comfort technology told about this, “Sleep is becoming a major issue in today’s generation, not just in India but throughout the world. People are suffering from a variety of sleep problems. And the prevalence of insomnia is gradually rising. So that’s where we want to establish a community, and that’s what we’re doing. We use a lot of material with influencers and professionals to truly help our company reach its goal and vision.”

Aakash Anand, Founder & CEO, IDAM House Of Brands commented on this and further highlighted, “Community-driven marketing is the best and most sustainable way of gaining paid customers. Our first priority as a business is to create the best product, second is to tell our audience about it. By way of transparency on social media, we are able to reach out to millions of people and try to create a community of like minded people who will help us build our brand and take it to newer heights. Community building also helps in building LTV which helps brands in longer run. This reduces CAC at a business level and the repeat ratio also moves up which is a healthy sign for any business.” 

The post D2C brands building a community to fuel growth first appeared on PHYGITAL RETAIL CONVENTION (PRC).