Over the past year, there has been a 65% increase in the number of brands developing their own website in India, which has resulted in an increase in auto-shipped orders.
The growing popularity of the direct-to-consumer model is because it is a win-win for both customers and retailers.
Direct-to-consumer selling is a new and growing niche that will be the next big thing in the market
The retail landscape in India has changed dramatically during the pandemic. With foot traffic in stores declining due to social distancing standards, online sales have seen record revenues for retailers. Additionally, customer demands for secure and contactless home deliveries have established that adopting omnichannel selling practices and offering innovative delivery options is a must for growth in 2020 and beyond. of the.
Direct-to-Consumer Selling is a new and growing omnichannel trend among retailers of consumer goods, electronics, furniture, housewares, apparel, and hobby and lifestyle items, to no avail. name a few. A number of Indian retail brands are embarking on the direct to consumer or D2C strategy, selling and delivering goods directly to consumers without relying on intermediaries such as third party sellers, wholesalers and retail outlets for the distribution.
According to Unicommerce’s “ Ecommerce Trends Report 2020 ” report, over the past year, there has been a 65% increase in the number of brands developing their own website in India, this which has led to an increase in auto-shipped orders. At the same time, branded websites saw order volume growth of 88%, compared to 32% for e-commerce markets.
The Indian retail market is clearly experiencing a new wave of direct-to-consumer sales among the major players. Brands such as Lenskart, Licious, Zivame, Epigamia, BoAt, Wow Skin Science, Healthkart, Mamaearth, MyGlamm, Sugar, IncNut, Country Delight, among others, are establishing a strong presence in the D2C arena, responding to customer demands despite the challenges launched. by the Covid-19 pandemic.
A number of traditional distribution brands are also entering the D2C sales space, in order to meet customer expectations and beat the growing competition from omnichannel players in the market.
The growing popularity of the direct-to-consumer model is because it is a win-win for both customers and retailers. While this allows consumers to interact and buy directly from the brands they love, it gives brands greater control over their sales and revenue, increases shipping speed, and allows businesses to learn more. close customer preferences and strategize accordingly.
But what are the key factors that determine the success of fulfillment operations and a positive customer experience in D2C retail? A well-functioning online store offering a wide array of product catalogs, personalized shopping offers, seasonal discounts, and professional customer service is essential in attracting consumers to your brand. Likewise, a robust logistics infrastructure with efficient inventory management and a last mile delivery system is a key differentiator among D2C vendors in this competitive landscape.
That said, there are also a number of logistics bottlenecks that make D2C a tricky business. Not all retail brands have the best logistics system in place and may depend on third-party carriers and shipping companies to keep their customers happy. Brands also face serious competition from e-commerce platforms which offer guaranteed delivery times of one and two days. Since the Covid-19 outbreak, the demand for last mile transparency and contactless delivery process has also taken center stage.
This indicates that the efficiency of last mile operations, speed of delivery and greater visibility across the supply chain are important for D2C brands to be successful. The use of last mile logistics technology, such as route optimization, can help retailers plan daily shipments and delivery routes optimally, with minimal human intervention and improved accuracy.
Fleet management tools give logistics managers better control over passengers and delivery agents, ensuring that there are no hiccups in the last mile of delivery and that every package reaches the customer on time. Last mile visibility solutions allow brands to share order status live with their customers, increasing supply chain transparency and improving brand confidence. Using the electronic proof of delivery system enables delivery partners to ensure safe and contactless deliveries, thus increasing overall customer satisfaction.
The trends that have emerged in India’s retail market this year are evident – direct-to-consumer sales is a new and growing niche that will be the next big thing in the market. Consumers will continue to demand more convenient purchasing options from brands, even after the demise of Covid-9, and competition should only intensify in the D2C space. It is therefore important to evolve over time and fortify your D2C supply chain with logistics technology to remain competitive and meet dynamic customer expectations in the times to come.