Arjoon J Mehra’s Post

The Exciting Growth of India's D2C Market: I just read an interesting article about the phenomenal growth of the D2C brands market in India! 🌟 It's projected to skyrocket from $16.9 billion in FY23 to an astounding $61.3 billion by FY27. Indian D2C brands are truly raising the bar with innovative products and exceptional customer experiences. As a consumer, I've become a loyal fan of many new-age D2C brands like TheWholeTruth, Mokobara, Perfora, and Cosmix. These brands have become my go-to for the products they offer. While the market is expanding rapidly, the real challenge for new D2C brands will be to scale profitably. Starting with an online-first approach is crucial (and eventually adopting offline channels for scale), but driving profitable sales is key. Here are a few thoughts for new D2C brands aiming for sustainable growth via online channel: 🔹 Clear Differentiator: Your brand needs a unique selling point or product moat that solves a specific customer pain point. Be the brand that stands out! Thewholetruth (Shashank Mehta) has done this brilliantly. 🔹 Crisp Premium Positioning: Based on your product differentiator and understanding of customer pain points, a clear premium positioning is essential. This allows the brand to offer top-notch product quality, compelling content, higher pricing, and better gross margins. Mokobara (Sangeet Agrawal) has nailed this premium game. 🔹 Healthy Gross Profit Margins: Aim for a gross profit margin of 65-70%. This is crucial to cover high customer acquisition costs (CAC), platform fees, and shipping expenses. 🔹 Organic Traffic: Strive for 40% of your traffic to be organic. Achieve this through strong SEO, earned media, viral social media content, and fostering repeat purchases and referrals. Cosmix (Vibha Harish) is excellent at driving organic sales. 🔹 Omni-Channel Approach: Real scale in India comes from an omni-channel strategy where offline sales start playing a crucial role. Many D2C brands are moving offline faster than expected, so having a retail strategy in mind from the outset is key. boAt Lifestyle has done great job building the offline channel. These are just a few essentials for D2C brands to navigate the path to profitable growth. What do you think? Any other strategies that are crucial for D2C success in India? Drop your thoughts below! 👇 #D2C #ConsumerBrands #Ecommerce #OmniChannel #MarketingStrategy #IndiaMarket #BusinessGrowth Link to the article: https://bit.ly/3RxwRwH

Title: The Rise of Direct-to-Consumer Brands in India In recent years, a significant transformation has been underway in the Indian retail sector, marked by the emergence and exponential growth of Direct-to-Consumer (D2C) brands. These brands, bypassing traditional middlemen and engaging directly with consumers, have been reshaping the way Indians shop and experience products. Let’s delve into the factors fueling this trend and the implications it holds for both consumers and the industry at large. The D2C Advantage: D2C brands leverage digital platforms to reach consumers directly, cutting out intermediaries and offering products at competitive prices. This direct engagement fosters a deeper connection with customers, allowing brands to understand their preferences better and tailor offerings accordingly. By controlling the entire value chain from production to distribution, D2C brands ensure quality and authenticity, enhancing trust among consumers. Riding the Digital Wave: India’s digital revolution, propelled by increasing internet penetration and smartphone adoption, has been instrumental in the rise of D2C brands. E-commerce platforms provide a level playing field for both established players and startups, enabling D2C brands to showcase their products to a vast and diverse audience. Catering to Evolving Preferences: Changing consumer preferences, characterized by a shift towards convenience, personalized experiences, and sustainability, have paved the way for D2C brands to thrive. These brands offer niche products tailored to specific needs, whether it’s organic skincare, artisanal food products, or sustainable fashion. Disrupting Traditional Retail: The rise of D2C brands poses a formidable challenge to traditional retail models, which rely heavily on brick-and-mortar stores and wholesale distribution. With consumers increasingly gravitating towards online shopping and seeking unique, authentic products, traditional retailers must adapt or risk being left behind. Some have responded by launching their own D2C initiatives or partnering with existing brands to enhance their digital presence. The Road Ahead: As D2C brands continue to proliferate in India, the competitive landscape is expected to intensify. Those that can innovate, deliver exceptional customer experiences, and maintain transparency in their operations are likely to emerge as winners. Moreover, as regulations evolve and consumer preferences continue to shift, D2C brands must remain agile and responsive to stay ahead of the curve. Conclusion: The growing prominence of D2C brands in India signals a paradigm shift in the retail landscape, driven by digital technology, changing consumer preferences, and a desire for authentic, personalized experiences. As they continue to innovate and expand their reach, D2C brands are poised to play a significant role in India’s retail ecosystem for years to come.

Key Insights of Speaking to a 9 Figure E-commerce Brand whose revenue is declining in India Year on Year. The brand is operating in the D2C Health and Wellness Space . The brand even though it operates from India does close to 90 percent of its revenue from the USA and the UK . The revenue for the brand has been declining every year in India for the past 2 years even though the brand has been spending more and more money on paid ads. One of the most common mistakes I spotted in what they were doing in India at least were constantly going for the sell rather than educating the consumer enough and empowering them to take a conscious decision to purchase the product. Sure heavy ad spends might get you the Initial conversions but they most probably will be one off which and over a period of time you'll keep on burning money because all and any acquisition that will happen will be new acquisition not retention(hence being unsustainable ) because the consumers weren't informed enough of what they were buying. Just like this brand , they were vaguely educating with bad creatives and organic posts and as a result all they were spending and getting were new acquisition, the returning customer rate for the Indian market had fallen to 8 percent from 18 percent (which is terrible and disastrous). The best example I have of the educating , nurturing and the converting model is of Hostage Tape. They've taken very niched products used by athletes for performance based purposes and marketed it to the masses just by educating & nurturing them, empowering them with knowledge all while moving them along the funnel , closer to a conversion

Online D2C brands step-up offline presence to push growth Is this a passing fad or a well-considered strategy? In India, brands are increasingly moving away from online marketplaces towards offline stores, driven by strategic considerations and shifts in consumer behaviour. Companies now recognize the importance of having a physical presence alongside their digital operations. Here are the main reasons behind this transition: ▶ Enhanced Consumer Experience: Physical stores boast an impressive 50-60% conversion rate, far outstripping the 3-4% seen online. ▶ Strategic Use of Data: By leveraging online sales data, brands can pinpoint optimal locations for offline stores, focusing particularly on Tier 1 & 2 cities. ▶ Omnichannel Approach: This approach allows brands to offer a seamless shopping experience, where customers can browse online and buy in-store, or vice versa. Brands such as Solethreads, Mamaearth, Licious, SUGAR Cosmetics, Pilgrim, Foxtale, Just Herbs, Zivame, Wholsum Foods (Slurrp Farm and Millé), Mokobara have realized that a robust offline presence is essential for achieving ambitious revenue targets. ▶ Untapped Market Potential: Despite the growth of e-commerce, 90% of retail in India remains offline, projected to reach $2.2 trillion by 2030, highlighting substantial growth opportunities. ▶ Building Trust and Loyalty: Face-to-face interactions help foster brand loyalty, particularly in industries like fashion and beauty. ▶ Increased Average Order Values: Customers tend to spend more in physical stores compared to online, significantly impacting overall revenue potential. Keep watching this space. eastindiaretail.com is here to forge better connections for the vibrant and rapidly growing retail industry in Eastern India. DM us at [email protected] Piyali Roy Oberoi East India Retail Connect

E-commerce and D2C Brand Analysis E-commerce is growing at CAGR of 14% and by 2027 India has also various growing brands in this domain. Various brands like Bombay Shaving Company,Nykaa,Mensa Brands,boAt Lifestyle etc. All are growing there revenues at much faster pace reaching new milestones. But only minimal brands like Nykaa,boAt Lifestyle ,Noise ,Mamaearth are profitable(but not consistently profitable) So why this sector even growing at rapid pace but still unprofitable. 1️⃣Higher CAC(Customer Acquisition Cost):In countries like India acquiring the customers is an expensive affair. This has led to the higher cashburn in this segment,which is affecting the Financials of the company. For example Nykaa's PAT margin has been affected due to this similarly its roce is 5% which is way less for investors. Bombay Shaving Company losses have been doubled from FY 23 to FY 24. 2️⃣Strong dominance of offline brands:HUL has strong dominance in the offline markets due to better distribution network(ignoring current slowdown in the growth of company like 2% Profit growth and 4% revenue growth). While for personal grooming industry Procter & Gamble subsidiary Gillete has major market share in it. 3️⃣Heavy Dependence on Marketplaces:The D2C Brands are heavily dependent upon marketplaces like Amazon,AJIO.com,Flipkart etc. They must try to sell there products via own website because in future increase in commissions of marketplaces can be a dent on Financials of D2C Brands. Solutions: 1️⃣Focus on customer loyality programs: Try to focus on building community something which has been successful for various companies like Eicher which targeted the bike enthusiasts. This strategy helped them retain the customers and also helped in Improvising themselves. Similar strategy has been followed by Zerodha,they targeted trading enthusiasts rather than going for mass. 2️⃣Focus on hero products and demographics:Now since E-commerce and D2C Brands have a lot of data so they can go for cohort analysis and look after there Hero products merchandise them properly and sell products as per demographics. #ecommerce #d2c #marketing #fundamentals #marketplaces

🌟 90% of Indian retail market will still remain offline, says Accel's Prashanth Prakash to The Economic Times. 🌐 In India, the shift of D2C brands towards omnichannel presence is gaining momentum, with major brands like Nykaa, SUGAR Cosmetics, Mamaearth, CaratLane - A Tanishq Partnership & Rebel Foods leading the charge. At Spatic, we understand that the demand for aspirational products extends far beyond Tier 1 cities. Our data-driven approach enables us to track consumer behavior across more than 150 cities in India, helping brands identify the right Tier 2 or 3 cities and optimal locations within them. By leveraging data, technology and insights, we empower brands to expand offline efficiently and strategically, achieving 💸 significant returns 💸 in 🚀 record time 🚀. Explore how Spatic is aiding this retail evolution and helping brands like above thrive in non-metro cities like Indore, Lucknow, Coimbatore and many more. Read the full interview here: https://lnkd.in/gMKaFJsq Curious to learn more about retail expansion strategies? Subscribe to our newsletter for exclusive insights and updates: https://lnkd.in/d-2VCVmc Satyen V. Gautam Dalvi Chendur Eswaran #RetailExpansion #Omnichannel #RetailStrategy #LocationIntelligence #Spatic #MarketInsights #Tier2Cities #Tier3Cities

Title: "The Rise of D2C Brands in India: Disrupting Traditional Retail Models" Introduction: In recent years, there has been a notable surge in the popularity of Direct-to-Consumer (D2C) brands in India. These digitally native companies are reshaping the retail landscape and challenging traditional distribution channels. In this blog post, we'll delve into the reasons behind the rise of D2C brands in India and how they are disrupting conventional retail models. Changing Consumer Behavior: One of the key drivers behind the rise of D2C brands in India is the shifting preferences of consumers. Today's consumers are increasingly digital-savvy, preferring the convenience and personalized experience offered by online shopping platforms. D2C brands leverage e-commerce channels to reach customers directly, bypassing intermediaries and offering a seamless shopping experience from browsing to purchase. Brand Authenticity and Transparency: D2C brands prioritize authenticity and transparency, establishing a direct connection with consumers by communicating their brand story, values, and product sourcing practices. By cutting out middlemen, D2C brands have greater control over their brand messaging, product quality, and customer relationships, fostering trust and loyalty among consumers. Disruption of Traditional Distribution Channels: Traditional retail models in India have long been dominated by intermediaries such as wholesalers, distributors, and retailers. D2C brands disrupt this conventional supply chain by selling products directly to consumers, eliminating the need for intermediaries and reducing overhead costs. Embracing Digital Marketing and Data Analytics: D2C brands leverage digital marketing strategies and data analytics to target and engage with their audience effectively. Through social media, influencer marketing, and targeted advertising campaigns, D2C brands can reach niche markets and create personalized shopping experiences for customers. By analyzing consumer data and feedback, D2C brands continuously iterate and improve their products and services, staying agile and responsive to market demands. Innovation and Agility: D2C brands are known for their agility and innovation, constantly experimenting with new products, business models, and marketing strategies. By staying close to their customers and being quick to adapt to changing trends and consumer preferences, D2C brands can capitalize on emerging opportunities and stay ahead of the competition in a rapidly evolving market landscape. Conclusion: The rise of D2C brands in India represents a paradigm shift in the retail industry, driven by changing consumer behavior, technological advancements, and a desire for authentic and transparent brand experiences. By embracing digital channels and prioritizing customer relationshipsD2C brands are revolutionizing the way products are bought and sold, ushering in a new era of retail disruption and transformation. TalentServe

Blog 22 Title:The Rise of D2C Brands in India Disrupting Traditional Retail Models The Indian retail landscape is undergoing a seismic shift with the rise of Direct-to-Consumer (D2C) brands. These new-age companies are challenging traditional retail models by selling directly to customers through online platforms, bypassing the network of wholesalers and distributors. This disrupts the status quo and offers several advantages for both brands and consumers. Fueling the D2C Boom: Several factors are propelling the D2C Revolution in India: Digital Boom: India boasts the world's third-largest online shopper base, fueled by rising internet penetration and affordable smartphones. This creates a fertile ground for D2C brands to reach a vast and tech-savvy audience. Shifting Consumer Preferences: Millennials and Gen Z prioritize convenience, personalization, and brand stories. D2C brands cater to these needs by offering seamless online shopping experiences, curated product selections, and direct brand engagement. Lower Barriers to Entry: Gone are the days of needing massive capital for physical stores and distribution networks. Today, social media, e-commerce platforms, and efficient logistics solutions make it easier for new brands to establish themselves. Disruption Through Innovation: D2C brands disrupt traditional retail in several ways: Faster Innovation: Direct customer connection allows D2C brands to gather real-time feedback and market insights. This agility enables them to quickly launch new products and adapt to changing trends, something traditional retailers often struggle with. Enhanced Brand Control: D2C brands control the entire customer journey, from product development to marketing and after-sales service. This allows for consistent brand messaging, personalized communication, and a more tailored shopping experience. Competitive Pricing: By eliminating middlemen, D2C brands can offer competitive pricing to customers while maintaining healthy profit margins. This price advantage is a major draw for consumers. Examples of D2C Success: India has witnessed the rise of numerous successful D2C brands: Nykaa: This beauty and wellness giant disrupted the traditional cosmetics market by offering a comprehensive online platform with a wide range of products and expert advice. boAt: This leading audio brand carved a niche in the market with its innovative and stylish wireless earphones, catering directly to the growing demand for such products. The Road Ahead: The D2C revolution in India is still in its early stages, but its potential is undeniable. As digital infrastructure continues to improve and consumer buying habits evolve, we can expect even more D2C brands to emerge and disrupt various sectors. Traditional retailers will need to adapt by embracing omnichannel strategies and focusing on customer experience to survive in this changing landscape.

Nykaa, the brand we all are very well acquainted with and Falguni Nayar, a women entrepreneur we all are inspired with. From leveraging influencers to delivering great customer service, Nykaa’s success story teaches us all about successful marketing for e-commerce businesses. Starting from an e-commerce website for men & women beauty and fashion products, bath and body, luxury, and wellness products. In December 2020, Nykaafashion established its first offline presence in Delhi, making the beauty and fashion industries multichannel. Today, Nykaa operates over 60 stores across India and went public in 2021 with a valuation of 52,574 crores. “4 P's”- Nykaa’s robust marketing strategy Product(Focus on product quality): They invest significantly in research and brand development to ensure their products are sourced at the highest quality. This dedication to excellence has earned them a strong reputation among consumers and industry experts. Pricing: Cost-Based Pricing: Through a cost-based pricing strategy, Nykaa Beauty calculates the production cost of its products and sets prices accordingly. Value-Based Pricing: Since its establishment in 2014, Nykaa has maintained competitive pricing across its product range, facilitating substantial growth as customers seek value. Offers and Discounts: Nykaa offers various seasonal discounts and promotions through its ecommerce platform. Notably, the Pink Friday sale is Nykaa's flagship event, featuring significant discounts on diverse brands to attract customers. Promotion  Nykaa has heavily emphasized social media and television in its recent marketing efforts, leading to significant audience engagement. Their content marketing strategy has been their backbone that focuses on producing high-quality videos and blogs tailored to resonate with their target demographic. A team of enthusiastic young professionals drives this strategy, ensuring a unique and compelling approach across various digital platforms and social media channels, ultimately expanding Nykaa's customer base. Placement Nykaa implements a diverse placement strategy, distributing its products through company-operated and licensed stores, ecommerce platforms, supermarkets, and hypermarkets. Catering to both affluent and middle-class consumers, Nykaa offers two store formats: Nykaa Luxe and Nykaa On-Trend. These products are exclusively accessible through Nykaa's online and in-house stores, as well as select luxury retailers. Key Takeaways from Nykaa’s Marketing strategies for Entrepreneurs -Build a strong direct-to-consumer relationship -Invest in digital marketing -Use data to drive decision-making #EcommerceSuccess #MarketingStrategy #CustomerExperience #WomenEntrepreneur #DigitalMarketing #Nykaa #FalguniNayar #BeautyIndustry #MultichannelRetail #MarketingLessons

Team www.chotavyapar.com had been working with brand who operates on a regional level but do have plans to make a Pan India presence.As an organisation ,we have to start thinking of launching across the country for revenue growth. Launching a brand on a Pan-India level can offer significant advantages, particularly in a diverse and rapidly growing market like India. Here are several reasons why a brand should consider a national launch: 1. Massive Market Size India is the second-most populous country, offering access to over 1.4 billion potential consumers. A national launch taps into this vast market, increasing the potential for growth and revenue across different regions. 2. Cultural and Regional Diversity India’s diversity in languages, cultures, and consumer behaviors presents an opportunity to tailor offerings to different markets. 3. Economic Growth and Rising Consumerism India is experiencing rapid urbanization and rising disposable incomes, particularly in Tier 2 and Tier 3 cities. A Pan-India presence ensures brands capture demand not just from metros, but also from emerging markets across the country. 4. First-Mover Advantage Many regions in India, particularly rural areas and smaller cities, remain underserved by large brands. A national launch can provide a first-mover advantage in these markets 5. Economies of Scale By expanding operations nationwide, brands can achieve economies of scale in production, distribution, and marketing. This helps reduce costs 6. Brand Visibility and Credibility A nationwide launch boosts brand visibility across different markets, increasing consumer awareness. This creates a stronger brand presence and builds credibility, as consumers often trust brands with a national presence 7. Digital and E-commerce Expansion India has a rapidly growing digital and e-commerce ecosystem, with more consumers shopping online, especially post-pandemic. A Pan-India launch allows brands to take advantage of this growth 8. Strategic Growth and Innovation Expanding across the nation encourages innovation. Brands need to adapt to regional tastes, which often leads to new product developments 9. Government Policies and Infrastructure Support The Indian government is making significant investments in improving infrastructure, including roads, logistics, and digital connectivity. These improvements make it easier for brands to distribute their products. 10. Competitive Advantage A strong Pan-India presence gives brands a competitive edge over smaller, regional competitors, allowing them to consolidate market share. It also provides better resilience in case of localized disruptions in specific states or region If you are looking to scale up the revenue ,you can contact us For North /East region [email protected] /Ph -8447212219 For West/South region , you can contact Aparajita Dutta ( Director -Sales , marketing and operations ) - [email protected] Ph 9873182270 www.chotavyapar.com