D2C is causing a revolution in the Indian consumer space. The pandemic era helped businesses maintain a steady source of revenue by pivoting to the D2C model and moving away from indirect selling models. The end customers are the biggest beneficiary of all – reduced waiting time, flexible delivery options and customized deliveries according to requirement – all from the comfort of home! The business outlook is indeed exciting for D2C with many sub-segments emerging as a result of booming consumer demands and innovative logistic models to cater for them, driven by the digital economy and e-commerce.

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Conquering the D2C model

Through a series of discourses with industry stalwarts and Shiprocket leadership, CNBC-TV18 domain expert Mangalam Maloo deliberated on this new wave in the retail industry driven by D2C and the various opportunities and ways to handle the challenges accompanying them. In this direction, CNBCTV18.com and Shiprocket launched “D2C, The New Dwan in e-Commerce”. The series kickstarted with a Facebook Live event. It featured industry experts, including Saahil Goel, Co-Founder and CEO of Shiprocket and Aman Gupta, Co-Founder & CMO of boAt. They mapped the trends and opportunities in the D2C space.

Launched on the 10th anniversary of BigFoot Retail Solutions Pvt. Ltd. , the parent company of Shiprocket, the conversation focused on the evolving consumer markets that have given rise to D2C business models and how the shrinking gap between brands and the evolving consumer markets is leading the way for unparalleled growth.

The New Wave of D2C in the Retail Industry

According to a report by KPMG India, the D2C sector is poised to reach $100 billion by 2025. Focusing on this rising tide, a special webinar on "The D2C Wave in Retail" was held with leading e-commerce and retail experts. They delved into the needs of consumers and the growing competition between established brands, and the upcoming wave of small-time sellers as they expand their horizons by reaching the consumers directly.

The webinar had key industry speakers including Dr. Anand Ramanathan, Partner, Deloitte India; Deepak Gupta, Chief Operating Officer, Bombay Shaving Company;

Kirti Avasarala, Chief Product Officer, Meesho; Arman Sood, Co-Founder, Sleepy Owl Coffee; Zairus Master, Chief Business Officer, Mamaearth and Atul Mehta, COO, Shiprocket.

The Changing Landscape of E-commerce with D2C

The consumption patterns and habits of consumers across the country have drastically evolved over the period of the pandemic. From faster deliveries to hyper-personalisation, customer expectations have transformed to push the boundaries of e-commerce businesses towards a more competitive landscape.

During the webinar, Atul Mehta,COO of Shiprocket talked about how brands are closer to the customers and optimising the usage of warehouses are the key elements in driving faster deliveries. Speaking about faster deliveries for FMCG products, Arman Sood, Co-Founder, Sleepy Owl Coffee shared his insights on harnessing the potential of different channels to serve customers across geographies. Reflecting on unit cost economics to make deliveries sustainable, Dr. Anand Ramanathan, Partner, Deloitte India said that delivery time is just as critical in the business as any other aspects.

The New & Emerging Standards of Customer Delight

Even with the challenge of ensuring quick and seamless deliveries, it is essential for businesses to understand the budgetary restraints of customers. Kirti Avasarala, Chief Product Officer, Meesho, discussed the needs of tier-2 and tier-3 segment customers who have high aspirations but limited means. Thereby, Kirti put a pertinent point across evaluating affordability within retention strategies for customers.

Moreover, businesses in the D2C space need to move a notch higher to ensure customer delight today. Besides making sure that order fulfillment is on time, and affordable, businesses need to factor in the availability of assortment with the growing demand. Zairus Master, Chief Business Officer, Mamaearth, spoke about the second leg of the D2C cycle, which pertains to easy access of inventory within the customer’s reach.

Putting focus on building robust omnichannel for greater efficiency, Deepak Gupta, Chief Operating Officer, Bombay Shaving Company, spoke about expanding the scope of order fulfillment to accommodation of personalisation, and curating experiences for new and returning customers.

COVID Pandemic – the leapfrogging moment for the logistics industry

The rapid adoption of digital solutions, pandemic-induced change in consumer behaviour, and the growth of core logistics infrastructure has placed the logistics industry in a sweet spot. Coupled with a favourable GST regime, the Indian logistics industry is currently valued at $250 billion and poised for a 10-12% CAGR growth each year.

To deliberate on the pivotal role of D2C in scaling the growth of the logistics industry, a special Facebook LIVE event brought together Vishesh Khurana, Co-Founder, Shiprocket and Arman Sood, Co-Founder, Sleepy Owl for a discussion.

Vishesh emphasised that brands, big or small, have realised the importance of having a seamless logistics arrangement to maximise customer reach and scaling up business offerings in the competitive post-pandemic business scenario. Armaan noted that the logistics model of Shiprocket has helped Sleepy Owl in leveraging the post-pandemic shift in consumer behaviour.

Exciting Times for D2C with the Q-commerce Revolution

Vishesh noted, "We are living in an era of tripartite creator-based transaction system – a creator who is generating the order, supplier who is shipping it and aggregator who is connecting the supplier with the creator. Having visibility across the channel is very important for taking decisions on adopting the right distribution strategy.”

With the emergence of Q-commerce and reduced delivery time from days to a matter of minutes, both Vishesh and Armaan emphasised that cherry-picking and right-sizing the delivery strategy is the key, without indulging in multiple delivery segments simultaneously. Vishesh sees Q-commerce as an investment into changing consumer behaviour, with the consumers ready to pay for the premium charged for quicker deliveries.

Vishesh rounded off the insightful discussion by noting that it is of utmost importance to evolve in response to customer/market demands and inculcate unwavering trust and customer loyalty as precepts of growth strategy. A customer-centric approach across the entire value chain is indispensable to establishing a key presence in a dynamic segment such as D2C.

Watch these insightful conversations here.

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