The pandemic has been a watershed year for the retail segment that forced small businesses to pivot online. While pivoting online, the small and medium scale brands found their newfound love of skipping the intermediaries or middlemen and instead of selling products directly to the consumer which is popularly known as the D2C channel. In the pandemic, the D2C brands have benefitted and leveraged the digital channels most efficiently to be at the top of the retail marketing game. The D2C channels have provided a fair playing ground for the smaller brands to unleash their potential to reach the consumer similar to a reputed brand. Initially, started with a no-store presence the homegrown brands that have tasted success and are redefining the consumer-brand relationship to rival the bigger brands. A combination of content, omnichannel, and focus on customisation is what these D2C brands are seen to be adopting.
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In the pandemic, the D2C brands have benefitted and leveraged the digital channels most efficiently to be at the top of the retail marketing game.
Top trends in D2C that is redefining the consumer-brand relationship
Going omnichannel: After tasting success through online channels, now most of the D2C brands are stepping their foot into tier-II and tier-III cities after realising the aspiring mindset of the shoppers from those cities. No matter how digitally we operate, the beauty of touch and feel while purchasing will never lose its sheen. MyGlamm the recently turned unicorn in the beauty and cosmetics space stood afloat in the tough times of the pandemic, by making its products available on the shelves of chemists, mom and pop stores. Currently, brands like Mamaearth, Sugar Cosmetics, and Peesafe are following the omnichannel suit.
Relevant content works wonders: Since there are no middlemen involved in the selling process, effective communication here is crucial. Usage of memes, moment marketing, self-deprecating humour, or taking humour content using the references from popular web series to advertise offerings has become a practice to grab maximum attention. We also owe our brand’s digital media content to the growing popularity of sub-cultures such as Korean drama such as Squid Game, Anime, and Spanish web series such as Money Heist, Narcos, etc. Video commerce is also a way consumers discover a brand to purchase since it inflicts an emotional response and engages customers online.
More customisation: The D2C brands micro-segment their target audience to build products and services that are more to their likes. For instance, let us take the women’s beauty care segment that has mostly focussed on face concerns such as face washes, acne, oily skin, and pimples, etc., but to date, there have been no such brands that thought about creating a skincare range for the woman in her prenatal stage as her skin undergoes stretchmarks, itchy belly, etc. Mom’s and Co is one such D2C brand for women’s personal care that has developed a skincare range for that particular phase. Customisation addresses specific concerns of individuals that drive sales.
The launch of new products: The most significant change brought in by the D2C businesses is the quick launch of products that otherwise took years and a long path travelling through various wholesalers or dealers to retailers. With no intermediaries, the launch of new products happens within months.
As Indians become more tech-savvy, the D2C approach will further make inroads into the retail industry. When people with varied needs and interests become online shoppers, the D2C businesses will opt for more segmentation and leverage social media channels to the optimum to realise more business opportunities and strengthen the relationship with customers.
