In 2022, direct-to-consumer brands showed how to recover successfully. The D2C sector in the Indian market has now left the disruption of the pandemic and supply chain behind
them. While there are concerns about growth and inflation all over the world. India will continue to grow. There will be tough times and every rupee spent in marketing will have to be accounted for but there is a lot of gold at the end of the 2023 tunnel.
Hyper-Personalization for the Win
The “One-size fits all” approach is long gone. Hyper personalization is the way of the future. The customer wants everything altered to their tastes, requirements, and visions. The D2C customer has a stronger opinion than ever before. Brands bringing a personal touch to their products and services will win the customers, until some other brands up the ante.
Boosting Brand-Customer Relationship
Fall in love with your customers, it will be one-sided but still worth it. Let them build an emotional connection with your products and services. An emotional connection will make the customer choose you over the competition every time. Brands will need to build meaningful relationships with customers in spite of knowing how fickle the D2C customer is. They will flirt with other brands but will expect the brand to be loyal.
Social Commerce or Performance-Based Marketing
The use of performance-based marketing, influencer marketing, and social media to target new audiences will keep increasing. While everyone will suffer from the bane of the high cost of customer acquisition the dependence on performance marketing will only go up. Influencer fatigue is being experienced, but until the brands go big enough to go into real mass media, Facebook and youtube will continue to rule. Brand-led advertising might reduce as everyone will be in the business of getting maximum bang for the buck.
The omnichannel strategy helps D2C brands in driving sales and create a cohesive customer experience. Cracking Offline will become critical to growth and survival. D2C brands will start chasing and creating a path to profitability. Strong unit economics will be non-negotiable.
Scope to Grow
D2C brands have a huge headroom to grow. With India’s major population being in the age group of 18-45 and eager to consume there is no time soon that the market will saturate. There may be some tough times in 2023 but the brands that survive and ride this will experience huge gains in the years that follow.