D2C brands in India are estimated to become $60 Billion Industry by FY27: Report

Key Points of the report includes-

  • From FY22 to FY27 D2C brands will grow at a staggering CAGR of 40%, A 15% higher than e-commerce which is having a CAGR of 25% Currently.
  • Around 75% of this $60 Billion will be contributed by sectors such as grocery, gourmet, apparel and footwear, and personal care By FY30, India will have 1.3B+ smartphone users and 500M+ online shoppers
  • Many brands have reached INR 100 crores in Annual Revenues within 3-5 Years
  • Brand Packaging has been an essential factor in attracting buyers
  • The Average Order Value (AOV) on each product and a hefty gain in gross margins are the fundamental storm that further foster this trend
#D2C #USD60Billion #directtoconsumer #40%CAGR #IndianD2CIndustry #Averageordervalue #Brandpackaging #highgrossmargins
How are D2C mattress brands helping India Sleep Fit ?

The mattress industry in India has emerged as a $2.5 Bn market, growing at a CAGR of over 11% in the last 5 years, Interestingly the organized sector which contributes to around 40% of the market share have grown at a CAGR of 17% over the same period.

Key reason why consumers sleeping over D2C mattress brands-

  • Personalized recommendation, growing health consciousness
  • 100 days free trial for ensuring the best comfort.
  • D2c mattress brands are priced 30-35% lesser, since they don’t have distributor & retailers
  • Mattress-in-a-box packaging to ensure best delivery ...
  • Seamless buying experience and easy exchange & return policies Apart from mattresses many brands have launched their other range like sleeping accessories & furniture. In order to enhance consumer buying experience many brands are also coming up with their experience centres, the experience centre along with online channel will help brands in providing an omni-channel experience to the consumer using technology.
  • Leading D2C mattress brands includes Wakefit (Revenue in 2022 is 636 Crores), Sleepyhead by Duroflex (Revenue in 2022 is 150 Crores), The Sleep Company (Revenue in 2022 is 58 Crores), SleepyCat, Livpure Mattress, Century Mattress & Flo Mattress.
#D2C #USD60Billion #directtoconsumer #40%CAGR #IndianD2CIndustry #Averageordervalue #Brandpackaging #highgrossmargins
What is making FMCG giants in India bet big on D2C ?

The strongest moat that FMCG giants in India enjoy is their widely spread distribution channel. This distribution channel enables them to have an upper edge over any new competition coming their way. Before the existence of D2C, a new brand required several years to establish a decent distribution channel, no matter how great their products are, but with the rise of D2C backed by new age logistics ventures like Delhivery, Shiprocket etc. distribution channel is no longer an uncrossable Moat....

Below are some other key reasons-

  • D2C model allows companies to control the entire customer experience, from production to distribution to sales, which can result in higher margins.
  • D2C model can help companies better understand their customers and gather valuable data about their preferences and purchasing habits. This can enable companies to tailor their marketing and product development efforts to better meet the needs of their customers
  • D2C model can help companies build stronger, more direct relationships with their customers, which can lead to increased customer loyalty and retention.
  • Many D2C brands have reached 100 Cr+ in annual revenues with in 3-5 yrs. of commencement, something which is really difficult with conventional channel.
  • D2C helps in reducing the budget of launching a product pan India.
  • Once a D2C brand is established it is relatively easy to multiply revenue by increasing the product basket.
  • Limited shelf space of the retailer as many new brands are entering the market regularly.

D2C brands or Investments by FMCG Giants in India-

  • Marico- Just Herbs, True Elements, Beardo
  • Emami- Tru Native, Fur Bar, Man Company.
  • ITC- Mylo, Mother Sparsh
  • HUL- Oziva & Wellbeing Nutrition
5 Effective Strategies to Retain Customers

According to the Harvard Business Review, “Acquiring a new customer can be 5 to 25 times more expensive than holding on to an existing one”. Hence holding on to your old customers by understanding their needs, preferences, problems, support and devising customized loyalty programs can be way more cost-effective and provide a constant growth fuel for your brand.

Below are 5 Effective Strategies to Retain Customers

  • Don’t just sell — educate

    Educating your customers is one of the most crucial part of the customer retention. Correct information about the product and how to consume or use it plays a very important part in the results which the customers are expecting....

  • Leverage personalization

    A brand’s success depends on the ability to offer a unique, personalized experience for the customer. According to Salesforce, “79% of customers are willing to share relevant information about themselves in exchange for contextualized interactions in which they’re immediately known and understood”

  • Provide exceptional customer service

    According to research from Dixon, Toman, and DeLisi published in The Effortless Experience, the true driver of customer retention and loyalty is the ease of getting a problem solved.

  • Build your customer loyalty programs the right way

    The key to creating loyalty programs that work is to know why customers use them and what gets customers to keep using them.

  • Apologize when you make mistakes

    Mistakes are very common in life as well as in Business. Apologizing honestly and rectifying your mistake promptly and making sure it does not repeat helps greatly in Retaining Customers when the brand has committed some error on their part.

#CustomerRetention #KeyStrategies #GrowthDriver #BrandLoyalty #Customization #Personalization #ExceptionalSupport

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