Over the course of the pandemic, India’s retail landscape has transformed dramatically. Owing to nationwide lockdown and social distancing measures, online sales saw record-breaking revenues for retailers. Customers are now demanding safe and contactless deliveries at their doorstep.
During the same period, the direct-to-consumer, popularly called D2C or DTC businesses, also witnessed massive growth. There has been a sudden rise of niche D2C brands across categories, including FMCG, cosmetics, fashion, furniture, and so on.
No doubt, the rapid penetration of the internet has been playing a crucial role for everyone. Now, reaching consumers is easier than ever before. Plus, the direct-to-consumer business model enables brands to reach their target customers directly, eliminating the involvement of any middlemen.
Moreover, as per a recent report, e-retail sales accounted for 18 percent of all retail sales worldwide in 2020. And this figure is estimated to reach 21.8 percent by 2024. So, if you wish to start a D2C brand, now is the time.
In this regard, let’s look at five essential tips to start your own DTC business and sell your products online.
Step 1: A great idea
For your D2C brand to stand out among its competitors, you need an idea worth building a business around. Plus, differentiation also plays a crucial role here.
To give an example, say a coffee brand, offering first-of-its-kind coffee shots that are easy to carry in a pocket or purse. All in all, a great idea will help in creating instant market value.
Step 2: In-depth market analysis
Now that you already have an idea, you might be tempted to execute it. But wait! Take a while to analyse who your consumers and competitors will be. You also need to determine existing need gaps and evaluate your market potential in order to address the same.
Suppose your idea is quite new and there’s no one in the market yet. In such a scenario, it becomes imperative to invest in building awareness around your product/service idea before you start selling.
Step 3: Know your customer
In addition, it is extremely important to identify your customer’s persona or target profiles to understand where your brand/product/service you offer fits in their daily lives. For example, as a D2C brand selling skincare products, do you have offerings for teenage girls or older women?
Also, it is equally essential to know the kind of content that would interest your target group or audience. Suppose interesting blog posts that give them in-depth information on trending topics.
Step 4: Articulate your brand message
It isn’t just about launching a D2C brand, but you also need to articulate your brand’s purpose. What’s your mission beyond making money online, why should customers buy from you?
Brand identity is crucial in building trust and meaningful relationships with your potential customers. And you can do so, once you are aware of your target audience well.
Step 5: Finances
While you are planning to launch your DTC brand, it is vital you have a fair idea of how much money will be required based on your business plan. Do you have sufficient funds to finance it all by yourself? Particularly, when you will start manufacturing products, there are important costs to be taken into account.
In a nutshell, these are the key factors that determine the success of your D2C brand and its retailing. At the end of the day, your core objective as a D2C brand, when you start operating, is to delight your customers with your innovative product offerings.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YS.)
