Posted On Dec 27th, 2022

As India is almost nudging ahead to the pole position in population, it is also becoming an extremely lucrative market for Direct to Consumer (D2C) businesses, given the digital and eCommerce penetration. The way brands are building their business strategy has evolved with the times and with the rise of digital marketing, more and more businesses are taking the D2C route. This effectively means that they are cutting out the middlemen and selling their products and services directly to the customer.

So, what does this mean for businesses in India? How are they changing the way they operate in order to tap into this growing market? Read on to find out more about how digital marketing is changing the D2C market in India. 

Enabling D2C brands to Scale within Budgets

Digital marketing has changed the way consumers shop, especially in favour of the D2C brands, by making it within the reach of new-age D2C brands to drive the necessary brand awareness and intent, at scale at reasonable costs, thereby challenging the traditional brands in the space. By creating a consistent, cohesive and compelling online presence, brands are able to reach out to a larger audience with impactful communication. Additionally, by deploying the right digital tactics through search engine optimization and social media marketing, brands are able to further enhance their visibility and access to their core audience. As a result, digital marketing is rapidly changing the way the consumer shops and is making D2C brands strong contenders for a larger share of the consumer wallet.

One-Size-Fits-One Approach for the Specific Target Audience

Marketing is no longer about creating one-size-fits-all campaigns and hoping that your target audience will see and respond to them. Digital marketing is all about providing you with the power to reach out to your specific target audience across their digital footprints at the precise moments with a personalized content strategy. For example, if you’re targeting millennials in New Delhi, you’ll need to use a different approach than if you were targeting middle-aged professionals in Chennai. The key is to deploy a One-Size-Fits-One approach by creating separate customized digital campaigns that address the specific needs and demands of each unique consumer within your target audience. 

Hence, understanding how your target audience uses digital channels is critical to targeting them right. Going deep to understand which platforms are being used in what fashion and what all influences their purchase decisions will help you create a sound digital marketing strategy that resonates with your target audience. 

Right Channel mix for the Right Consumer

With a detailed understanding of the online behaviour of the consumer, D2C brands are able to build awareness, and trust as well as induce trials among target consumers, by using a healthy mix of paid and organic tactics with compelling content. Today there are multiple channels, which play out in the digital marketing playfield, right from Search Engine Marketing (SEM), Email Marketing, Social (Facebook, Instagram, etc.) apps, and Affiliates. Each channel needs to be evaluated basis of the business objective set and geared accordingly. Additionally, influencer marketing is springing up as another major source of building brand trust and awareness. Here, the reach and impact depend on the nature of the influencer that is getting engaged, be it a nano, micro, macro, or celebrity influencer. This is also becoming a good route to build compelling content at scale with reach. 

Bang for the Buck or Return on Rupee Spent

As the ever-changing landscape of technology and consumer behaviour continues to present new challenges and opportunities, businesses must adapt their marketing strategies to stay ahead of the curve. Digital marketing has become an essential tool for businesses, especially D2C brands, for whom it is a critical tool for providing reach and driving growth. In a world where customers are inundated with choices and can easily opt for any brand, digital marketing allows D2C brands to reach a wider audience with relative ease and at a significantly lower cost than traditional marketing channels. At these low costs, the ROI comes out to be extremely lucrative, especially for new-age businesses. What further sets apart digital marketing from traditional marketing is the ease of tracking the bang for the buck or the ability to exactly plot the returns received for every rupee spent, which was relatively questionable in the traditional forms. Additionally, digital channels can be used to mine valuable customer insights at a rapid pace that can be used to improve product/service offerings and personalize messages to specific segments. 

Embracing Newer Technology & Maximising Customer Experience

The way customers interact with businesses and make purchase decisions have evolved dramatically in the past decade. In India, as more and more people gain access to the internet and smartphones, D2C businesses have rapidly embraced cutting-edge technology and are latching on to the latest trends, to maximize customer experience and build a strong differentiation. Other than having a compelling online website or app which optimizes user experience, being active on social media, investing in influencer outreach, and creating digital content such as blogs and video tutorials have all become cornerstones of digital success. Emerging and engaging modes like Conversational Commerce, Augmented Reality (AR), Virtual Reality (VR), MarTech platforms have all been proving to be game changers within the digital space. 

Overall, the move toward digital marketing has been beneficial for both businesses and customers. Customers now have more choice and convenience when it comes to making purchase decisions, while businesses can reach a wider audience with their custom-made campaigns within their budget. 

As the D2C space continues to evolve, so should the digital marketing strategies of these brands. By staying ahead of the latest trends and technologies, D2C brands can ensure that they are always providing a sought-after customer experience.

Original Post: How digital marketing is changing the way D2C market works in India