By Dharmender Khanna
The festive season in India is in full bloom, and the festive rush is intense. It is all about excitement, preparations, and, of course, shopping. The pandemic has paved the way for a transition from the physical to the digital domain, especially e-commerce and direct-to-consumer (D2C). Consequently, the festive period has emerged as one of the most rewarding times for all sized, budding, and established D2C brands to scale and prosper.
Festivities in India begin in August with Raksha Bandhan and last until December with Christmas and New Year. Over this period, sales of consumer durables, electronic goods, clothing, jewellery, and automobiles surge. According to the IBEF report, Indian e-commerce platforms generated $9.2 billion GMV (Gross Merchandise Value) during the 2021 festive season and have been on an upward growth trajectory. It is expected to supersede the US and become the world’s second-largest economy by 2034.
However, for small D2C brands, the quest for a consumer base extends beyond brick-and-mortar stores and websites. They have to compete with e-commerce giants like Amazon and constantly attract and engage customers. Here’s how D2C brands can expand throughout the festive season:
Designing a compelling website and leveraging social media
The e-commerce landscape is booming as more people choose to shop online. D2C brands should sell proactively through their own websites rather than investing a hefty amount in selling through third-party channels. An engaging, easy-to-navigate website with clear, concise, and comprehensive product details can serve as a springboard to success and help them drive sales. Providing different payment alternatives and full-day customer service can be an added benefit for them. Furthermore, D2C brands should tap into social media platforms since that is where most of their target consumers, Gen Z and millennials, spend time. Social commerce through platforms such as Meta (Facebook) and Instagram are excellent mediums for reaching out to wider audiences and engaging with them through creative campaigns. Influencer collaborations and moment marketing can work wonders during the festive season.
Generating creative content and optimising marketing and advertising spend
D2C brands must integrate the appropriate marketing mix and advertising tools. Most firms nowadays employ unique and lucrative content to attract consumers. Curating content that effectively addresses consumers’ pain points and offering products and services as solutions are strategies that brands can adopt.
Cadbury’s recent #ShopForShopless campaign is winning hearts. The brand is building virtual shops for local hawkers who do not have access to permanent shops. It perfectly illustrates how generosity and goodwill can go a long way to brighten someone’s festive season and drive engagement.
Planning and implementing suitable digital marketing strategies and keeping a close eye on expenditures can help brands reach their target audience without overspending on marketing initiatives. They must ensure that their expenses are well-balanced and not centred on a single channel.
Enticing customers through exciting offers
Every direct-to-consumer brand caters to a niche clientele. In addition to engaging and motivating new customers to purchase products, brands must also incentivise their existing customers by offering discounts and coupons since many eagerly await such deals and offers during the festive season.
Brands should analyse prior purchasing statistics to understand trends and market demand for their product to drive sales during festivals. Promotional offers can increase customer acquisition, generate revenue, and foster customer relationships.
Inventory and logistics administration
D2C brands emphasise inventory segregation for effective order pickup and delivery. Some even employ more workforce for smooth inventory management. However, small D2C brands may not have sufficient resources to run end-to-end operations independently.
During high festive demand, brands can outsource fulfilment services and utilise D2C e-commerce development and management logistics solutions for streamlined order processing, optimised operations, and seamless last-mile product delivery.
Bottom Line
This festive season is a big opportunity for online and new-age D2C brands. The trend of revenge shopping is expected to spur up demand this season owing to pent-up demand and lockdown withdrawals. It provides a tremendous opportunity for D2C brands to sell through their websites and engage consumers proactively through multiple channels. Hitting the right chord with customers can open up possibilities for D2C brands to build a larger consumer base and sales and broaden the scope for development and success in the coming years.
The author is the vice president of D2C, India, AnyMind Group
Also Read: Diwali 2022: How brands are celebrating the festival of lights