For Fast Moving Consumer Goods (FMCG) traditional brands, the pandemic has been an absolute bloodbath during its initial outbreak period. From supply chains to stores being shut down, the brands had to face all sorts of retail challenges. Meanwhile, the rapid adoption of the Internet and digital marketing strategies, saw new-age brands offering niche and customized options to customers, which eventually raised the demand of D2C (Direct to Consumer) brands in the FMCG category.
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.”