There was a lot of technical adoption and invention in the year 2021. It has hastened the transition to a more digital environment and influenced long-term consumer purchasing behaviours. The pandemic issue drove brands across verticals to rethink their strategy and realign their operations, forcing them to rethink their strategy and realign their operations. The transition from offline to online channels, as well as the formation of the D2C market to fulfil the expectations of new generation customers, is one of the most significant shifts.
As per the report by Avendus Capital, India’s D2C landscape currently has over 800 D2C brands and is on track to be a $100 billion market by 2025. So, let’s look at the D2C trends to keep an eye on in 2022.
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D2C brands will continue to proliferate customers of the new generation are looking for businesses that provide one-of-a-kind and customised products. As a result of this shift in customer preferences, a market for direct-to-consumer (D2C) brands has emerged, bridging the gap between vendors and customers thanks to its flexibility, simplicity, and seamlessness.
As the Indian direct-to-consumer market grows, these are some of the key trends that will shape the sector in the coming years and beyond:
Consumers’ purchasing and buying habits have radically transformed in the recent decade. Given the level of convenience and ease, Indians prefer to make transactions using their mobile phones. It’s no surprise that D2C brands are implementing a mobile-first approach and focusing their efforts on improving the user experience. The digital marketplace will continue to be dominated by mobile, with brands focusing more on a mobile-centric consumer approach and more brands opting for their own official app in the future.
A Personalized Experience: Personalisation in the D2C space looks like using data to create content that people resonate with, recommendation based on purchase history, tailored and customised promotions and offers and offering customised services. Offering personalisation and a seamless customised experience will be a key factor for growth for D2C brands as it will result in low churn rates, higher acquisition rate, increase in the Lifetime Value of a Customer and contribute to a positive ROI.
Sustainability Matters: Buyers today care deeply not only about which brands they interact with, what products they purchase but also how their purchase affects the environment and the future at large. Sustainability is no more a philosophy on a marketing materials but have actual life effects on customer’s purchase decision. In the coming decade, more companies are expected to incorporate sustainability as their core pillars and into their practice.
In the D2C industry, omni channel marketing allows firms to build an integrated experience for their customers and reinvent how they shop and connect with the company. Providing a seamless experience for customers by combining digital and physical marketing channels produces a one-of-a-kind, unforgettable experience. Customers get a better, more integrated experience with omni channel marketing, and it’s likely to become more innovative in the coming years.
Branding and Promotion: Content serves as a link between a company and its customers. A successful direct-to-consumer brand sees its customers as users and interacts with them at multiple points. Content is at the heart of a successful brand’s marketing mix since it can not only engage and educate customers, but also convert them into paying customers. Brand storytelling will become more prevalent. D2C brands will continue to communicate their philosophy, products, and services to their target audiences by utilising innovative brand partnerships, storytelling, co-branding, and influencer marketing techniques.
The exponential growth of the D2C business model over time is amazing. We predict D2C enterprises to gain traction in 2022, with specialist sectors developing, new entrants, and good investor investments. As we look forward, D2C brands will continue to develop in 2022, with big brands opening their own digital-first divisions. Technology and innovation will be playing major role in developing meaningful brands as the industry expands and evolves.
