expressed opinion entrepreneur Contributors are their own.
You are reading Entrepreneur India, the international franchise of Entrepreneur Media.
Advances in fast-paced digitization and technological innovation have been changing the overall outlook for businesses and the way consumers transact today. In recent years, especially in the wake of the unprecedented pandemic, there has been a paradigm shift in the buying process, with consumers in control of the pre- and post-shopping experience. In line with this, brands in direct-to-customer (D2C) transactions have been leveraging technology solutions to outperform their peers.
Even since COVID-19 hit, the number of online shoppers has increased. The lockdown crisis has forced people to open resorts to order their essentials online and experience the process of shopping online.
Another shift in the digital world is reflected in the increased consumption of content by viewers and the penetration of Internet facilities by many mobile users. As a country, there is growing trust in online transactions as early days preferred the option of “cash on delivery”, a convenient payment method that persuaded consumers to do so often; this shift also continued into the COVID-19 pandemic 19 After the trend.
Combined with ease of purchase, options to choose from, speed of delivery, and ease of return or exchange in certain industries, genuine and genuine products are driving the online shopping trend. If we look at it from a micro perspective, the numbers and protocols that we can achieve in 2028-2030 are themselves affected in 2020-2021. This is just the beginning of an era of growing D2C trends.
While India’s D2C market was worth $33.1 billion in 2020, it is expected to leap exponentially to reach $100 by 2025. Notably, the market has grown 15-fold since 2015, largely thanks to the amazing penetration of technology in India over the years. Most of the well-known brands in the country have grown to over 80% by 2022. One of the key drivers for the growth of the D2C segment in India is the beauty and personal care industry, which saw e-commerce order volumes in 2022.
From ideation to execution and growth, technology has been transforming how D2C brands operate. Some of the core areas where technology is driving the growth of D2C brands in the country include content generation on social media or a seamless shopping experience on websites.
Here are some key ways D2C brands are leveraging technology to grow their business:
Customer communication is common for consistent communication to integrate several touchpoints where a D2C must interact with consumers. With the trend-locking tool, studying consumer behavior graphs can provide insight into the changes and changes that occur on a daily basis. To maintain the brand identity at all times, technology helps to synchronize the communication of the brand’s voice.
supply chain integration
From procurement to warehousing to fulfillment of orders and logistics, all supply chain management processes are linked by technology tools.
One. OMS/WMS tools allow ways to keep customers in the loop while in transit. It helps ensure timely delivery to consumers and creates a sense of accountability and credibility throughout the buying process.
b. Modernization can reduce the overhead of redundant tasks. All orders can be processed centrally, itemized inventory provides tracking down to the last detail, etc.
There are multiple enablers in the startup ecosystem that can be used to maintain the hygiene of supply chain processes, thereby accelerating delivery times for D2C brands.
Customer checkout system
With tools that interact with customers during the checkout portal, it helps to read customer behavior patterns and detect fraud early, historical buying trends in different regions, as well as access a database with detailed information and display delivery times before shipping table etc. It supports options such as subscription and storing secure payment information for ease of use.
Online and offline channel integration
The seamless presence of brands can only be achieved through technology that brings together offline learning and online challenges for better decision making. Capturing omnichannel user behavior helps strategize around better recommendations, use an integrated model to personalize the experience for customers, and maintain brand identity across the customer-connectivity platform.
Enabling AI for Conversational Commerce
Advances in artificial intelligence have eliminated many advantages when it comes to interacting with consumers digitally in real time. Recommendations based on AI learning to interact with customers are called in-cart upsells. The overall digitization of business operations has enabled customers to make purchasing choices more quickly, and direct-to-customer businesses have always focused on making customers feel at home on whatever platform they advertise their products on. Even D2C marketing includes cutting-edge technology, such as automated conversations via chatbots, which significantly reduces wait times and aids customer acquisition and retention.
Quick commerce (Q-commerce) has seen massive growth and the need to categorize product sales into niche segments. Employing technologically advanced analytical tools, D2C brands have been loosening their understanding of important markets and making fundamental decisions, such as establishing micro-warehouses or expanding their presence in specific areas.