How on-demand fuel delivery will favour small manufacturing businesses? 

• Cost saver: Businesses can save money on acquiring fuel and consumption. With fuel prices already surpassing the century mark businesses will certainly try to bring down the operating cost. The on-demand fuel delivery will mean reduced manpower, zero pilferage, zero wastage, and no over-billing. It will eliminate the additional infrastructure required for a small manufacturing business for bulk storage of fuel. 

• Quality and quantity: The on-demand fuel providers employ technologies such as geofencing and digital billing to ensure there is no pilferage and the business pays for what they have ordered. 

• No compromise on safety: Safety is paramount while handling inflammable liquids. Fuel is transported through safety compliant browsers that are resistant to fire thereby reducing accidents. 

• 24X7 fuel availability: The machines of small manufacturing businesses can run out of fuel anytime. The 24X7 availability of fuel will empower small businesses to avail fuel anytime, anywhere, and avoid investing in storage facilities. Quick delivery times will ensure the hassle-free process of fuel acquisition. 

• Reduced Carbon Footprints: On-demand fuel delivery allows reduced carbon emissions by lessening the trips to local fuel stations. 

What lies ahead for the on-demand fuel delivery startups?

The on-demand fuel delivery startups contributing to zero carbon emissions align with PM Narendra Modi’s pledge to achieve zero carbon emissions by 2070, at COP 26 held at Glasgow. The government of India aims to encourage those businesses and startups whose digitisation can transform conventional practices. Moreover, as more hyperlocal delivery and D2C startups emerge, the on-demand fuel startups can strike partnerships to be their fuel partner. Also, the opportunity lies in hospitality, healthcare, construction & development, corporate office, parks, institutions, etc. 

For oil companies, the on-demand fuel startup opens new business avenues to expand their offerings and develop services for the end-users that were restricted to petrol pumps. With the government‘s increased focus on EVs, on-demand delivery startups can also foray into developing electronic charging stations. Hamsafar, a fuel delivery startup is looking forward to developing charging stations at its tech platform and creating manufacturing consortia for standardized EV components such as batteries, powertrain, and charging equipment.

Top shipping practices that need to be adopted by D2C businesses

• Be wise while selecting your logistic provider

For offering your customers a hassle-free shipping process choosing the right logistics provider will play a crucial role. While selecting, one should keep in mind the locations they deliver, their charges, and whether they offer special services such as packaging, same or next day delivery, customer service. An important aspect of selection should also be providing an insurance plan, in case of any losses or damages in the future. Next, based on the sector the business might require additional services to offer, for instance, an online cycle brand can offer to assemble the cycle parts upon delivery, which should be part of SLA ( service-level agreement).

• Convey the tentative date of the estimated date of delivery at the checkout

The internet-first or D2C businesses should display the estimated date of delivery to the customers while they checkout. This also helps build customer expectations and excitement around the shopping experience. Logistics software needs to be implemented that helps to generate a near-accurate date of delivery, with available data on carrier performance as soon the customer enters the delivery pin code. However, the shipment needs to be delivered on the near-accurate date displayed.

• Prioritising order tracking updates 

The online Ayurvedic brand made one huge blunder by not updating its customers with the tracking updates of their shipment. Digital businesses should send regular updates on every order will help to minimise customer dissatisfaction.

• Returns and exchanges should be quick 

Returns and exchanges especially in the apparel businesses are prevalent. Customers on social media, express their resentment on social media over returns and exchange processes. By making these processes quicker and seamless they can turn this into a favourable business opportunity.

• A plan-B for failed deliveries and shipping exceptions

Businesses do not wish to see a failed delivery, but such cases might arise. A logistics provider will attempt for at least three deliveries before declaring it as failed. However, the business needs to be aware of fake delivery attempts. Therefore, businesses here should intervene and implement logistics software to anticipate delays and exceptions and inform the customer of the same beforehand.

For internet-first or D2C businesses, post-purchase experience is an important aspect that can weaken or strengthen customer loyalty and impact repeat businesses. Sending shipment updates might seem an unimportant task but making small changes to shipping practices can lead to big improvements in sales and shipping and elevate the overall satisfaction levels.

What lies ahead for the community group buying model in grocery?

Not just limited to low prices and heavy discounts, the community buying model can be a good revenue churner for resellers in the small cities who are looking for alternate sources of income in turn bringing in more customers. The resellers on the Otipy platform on average earn a commission of Rs 2500-3000 and the top 20 percent of them make more than Rs 15000 per month. Besides, increasing smartphone usage and cheaper data plans, the community buying model in India will thrive on trust and establish a quick and direct interaction between buyers and sellers replicating the experience of traditional offline commerce also open to negotiation.

Content platforms – A focused marketing strategy with Micro and Regional influencers

Most content platforms such as BabyChakra, Popxo, Mompresso, and Plixxo are driven by a strong community of women, regional content creators, and micro-influencers who through their innovative content styles have developed a niche that appeals to the vernacular audience which is large and growing in number. A report from RedSeer says that there are about 210 million monetisable internet users in India who consume content in vernacular languages.
Although it might seem that marketing through macro-influencers will maximise reach due to their huge follower base, but vernacular content creators hold a special place in their follower’s hearts. The followers tend to idolise them more due to regional inclination and connectivity and hence, are considered experts especially for topics on skincare, makeup, fashion, and styling.
Surprisingly, the number of followers for macro-influencers cannot promise a better engagement rate which is why these D2C companies are leveraging the strong network of women, vernacular, and micro-influencers as a part of their focussed marketing strategy to tap the vernacular-speaking masses and expand their product reach.
Similarly, GoodGlamm through its acquisition of Scoopwhoop wants to foray deeper into the male’s grooming segment that has remained underserved and limited over the years. Its new venture Good Creator Co in influencer management will form a symbiotic relationship with the influencers and content creators as it will provide brand campaigns, monetisation opportunities, as well as affiliate and creator commerce programmes.
On acquiring Momspresso and MyMoney, HCPL will enjoy from the platform’s existing 60,000 regional content creators, a strong women community of 30 million, and over 2 lakh micro-influencers owning a fan base of 50 million.

D2C brands will benefit from these online content platforms as they can market their products through regional targeting that will appeal to a larger audience by building a personal connection that offers these brands high reach and engagement.

Below is the list of digital touchpoints that businesses need to keep in mind.

Must have consumer digital touchpoints required to build in a digital business

• The product catalogue

Hardly any consumer before using a product reads a catalogue and if the product fails to function the blame goes to the quality and results in an angered customer giving bad reviews largely impacting the prospective buyers of that brand. To avoid such consumer criticism, digital brands should ensure that the customers before making a purchase understand a product functioning for which the brands need to provide an authentic product usage visual demonstration at the point of purchase.

• Chatbots, do you understand my problems?

To offer customers a swift and prompt customer care service 24X7, digital businesses became fond of implementing chatbots and it has worked wonders. But, an evolving customer base comes with a unique set of problems that at times chatbot might be unable to answer the queries, no matter how much we create multiple combinations of questions and answers for the chatbot. Also, with digital businesses burgeoning into tier-II and tier-III cities businesses need to make their technology in customer service more inclusive and give them a comfortable experience.

• Telling your tale through social media

Today, if a business is not on social media, its credibility is questioned. Businesses should leverage social media platforms to provide relevant content or industry information that will establish a reputation with the customer base. Content on helpful tips will help increase the reach of the brand.

• Apps or website

Smartphones becoming absolutely handy, apps and website become an essential digital consumer touchpoint to attract consumers and offer them a seamless navigation experience. The app or website of a business should be easily viewable on a range of devices, otherwise the business is bound to lose customers.

By developing a digital touchpoint strategy, businesses can entice customers and they have the best shopping experience from their online store and build a loyal consumer base.

D2C meat brands making the cut into lower-tier cities

It is natural to think that online purchases of meat and fisheries will not find as many customers as metro cities, but the aspirational mindset of the consumers of tier-II and tier-III cities sets off their experimental taste buds to try new cuisines. Hence, there is an immense potential in these cities that businesses need to unlock.
To cater to unique consumer tastes, Licious has enhanced its portfolio with a ready-to-cook (RTC) and ready-to-eat portfolio to include regional delicacies like chicken ghee roast for South Indian consumers and Kosha Mangsho for east consumers along with breadcrumb coated snacks and tandoori items. Licious plans to expand in 20 more cities.
Similarly, another D2C meat player FreshToHome plans to add new products under its RTC and RTE categories and plans to open 100 new stores across India in the coming 12 months.TenderCuts, a popular D2C meat outlet with its established presence in cities like Chennai, Hyderabad, and Bengaluru is planning to expand into 100 stores by March 2022.
Low rentals for physical shops are motivating these D2C meat businesses to strengthen their presence in cities than metros.

The expensive and branded meat

Meat sales spiked during the pandemic that gave rise to these D2C meat companies to quickly ramp up their supply capabilities to serve the needs of the consumer and gain trust. With its integrated value chains, a wide array of meat products, quality assurance, and convenience they are paving the positive perception of branded meat which will flourish their business in such cities. However, not forgetting that Indian consumers are price-conscious, a challenge might be awaiting in terms of price point. For instance, lets’ compare the prices of basic fish meat Rohu that in general costs Rs 150 a 1kg but when branded it costs Rs 250- 325.

The D2C meat market going offline in tier-II and tier-III cities hold immense potential as consumers are now concerned about healthy protein intake and are likely to purchase more from brands that engage directly with them. The brands are also driving the importance of hygienic meat that will be a major factor for driving sales in those cities.

The road ahead for the D2C businesses in 2022

Here are the top trends 

The rise of the niche categories: The D2C segment has become a competitive segment and has been bringing new and innovative offerings to meet customer’s expectations and bring a point of difference. High disposable incomes and aspiring to lead a better life is giving impetus to customers to try out new products and effectively address their problems. Some of the niche categories include nutrition and wellness, sulphate-free personal care, men’s grooming range, women’s hygiene, eco-friendly and organic products and inclusive fashion. 

Focus on enhancing the mobile apps: Mobile apps of  D2C businesses are the first point of contact and will be a major factor in acquiring customers. With lesser footfalls in physical stores apps will play a pivotal role in offering an immersive, personalised and interactive shopping experience that in turn will retain customers and build a loyal customer base.

Expanding to new consumer cohorts: D2C businesses are increasingly collaborating with micro-influencers who are delivering content in vernacular to penetrate deeper into the lower-tier cities for decent growth as the buying behaviour of consumers in tier-1 cities has reached the saturation point. 

Going Headless : This trend has nothing go to do with humans. Most e-commerce or D2C companies are looking for headless architecture meaning the front-end and the back-end are will be separated, this separation will allow more room for flexibility and endless customisations thereby creating ample opportunities for growth. With the advent of smartwatches and smart devices such as Amazon Echo and Google Home online purchases can now be made through such devices that do not have a screen. Keeping this in mind the e-commerce is adapting to headless architecture to enhance existing websites with new features and performance levels. They can operate the storefront with distributed servers irrespective of locations with a simple click.

Go Omnichannel: According to a survey by Accenture 91 percent of the consumers are likely to shop more from brands that have a shelf presence. Brands like Peesafe, Licious, Mamaearth and Wow Skin Science are aggressively extending their presence into the offline channel. 

Lastly, in 2022 the brands are not limiting themselves to online storefronts and are increasingly reaching their presence offline to reach new markets and customers other than the metro cities. Apart, from that, the trends are also towards focussing on sustainable packaging and health-conscious products nudged by the outbreak of the virus.