~B S Nagesh Ignites Customer Centricity Revolution in FMCG & Consumer Brands~
Mumbai, June 2023: The second edition of the India D2C Summit & Awards 2023 (D2C 2023) commenced today, featuring a keynote address by Mohit Rana, Partner at Redseer. Rana shed light on the rapidly growing landscape, with 9,000 brands currently operating and a projected revenue of $25 billion in the coming years.
In his address, Rana emphasized India’s remarkable digital development, positioning it as one of the most advanced nations in terms of technology adoption. He highlighted the exponential growth of D2C brands, which has experienced a staggering 60% increase since 2015, a time when D2C as a market segment barely existed. The surge in online sales has fueled this growth, propelling D2C brands to thrive in the Indian market.
The summit also witnessed an engaging discussion on harnessing data points for D2C brands, enabling them to make informed business decisions.
BS Nagesh, Founder of TRRAIN and Chairman of Shoppers Stop, hosted a session on the Future of FMCG & Consumer Brands in Digital-First India. B S Nagesh emphasized the critical role of customer centricity, stating that even if a product is meticulously designed, it holds little value if it does not cater to the needs of the customer. Ashima Aggarwal, E-Commerce Business Head at Bajaj Consumer Care, highlighted the robust growth in the FMCG sector, particularly in the rural hair oil business. She shared further insights on the evolving mindset within FMCG, where customized business models and technological advancements are being embraced despite inflation. Swati Dayani, CTO, Cipla stressed on the importance of credibility, reliability, intimacy, and self-orientation. Deepti Naithani, Director – D2C Business at Tata Consumer Products, shared the effectiveness of word-of-mouth and testimonials for D2C brands. The D2C segment currently accounts for 20% of e-commerce, and it is projected to grow to 40%.
The first segment of the Summit also witnessed the release of the book ‘D2C Evolve’, launched by Dhruv Thakkar, Senior Director – Business Development, DHL Supply Chain, India. ‘Evolve’ details the struggles and success stories of some noteworthy D2C brands in India’s dynamic D2C landscape.
Vikram Gupta, the Founder and Managing Director of IvyCap Ventures, took the stage to discuss the current landscape of working capital in India and shed light on the emerging trends in the market. In terms of market potential, he expressed that the D2C sector is still in its early stages of development, stating that we are merely scratching the surface. He projected a massive growth trajectory, with the market expected to reach $60 billion in the coming years, up from its current value of $12 billion. Additionally, Gupta mentioned that e-commerce penetration is expected to grow from 8% to 15%. D2C brands are effectively capturing the Tier 2 and 3 markets, presenting a significant opportunity for businesses to capitalise on this emerging segment.
During a panel discussion ‘How Brands are Gearing up for the Next Phase of Consumption’ Satish Singh, Founder & CEO of Joker & Witch, highlighted an interesting insight, stating that happy customers are often too busy to leave reviews, while irate customers will go out of their way to share their feedback. According to Aparna Thyagarajan, Co-founder & CPO of Shobita, the success of a brand hinges on five key factors: global selection, authenticity, value added services, customer care, and quality. She highlighted how building a strong brand requires an obsession with customer satisfaction. By focusing on these essential elements, brands can create a winning formula for long-term success in the market.
During the event, Aashish Batra, Co-founder of myPAPERCLIP, underscored the significance of grasping the evolving consumer mindset, which now revolves around aspirational goals. He urged businesses to aim for the “wow factor” in their offerings, and the need to provide extraordinary experiences to customers.
In an era of rapid digital transformation and changing consumer preferences, brands are gearing up for the next phase of consumption. With the Indian Direct-to-Consumer (D2C) market witnessing exponential growth, estimated at over $100 billion with 800+ brands, it is crucial to understand the future of targeting millennial customers and building a thriving ecosystem for retailers. Anand Shankar, Vice President of Sharrp Ventures, delved deep into these topics, exploring the strategies and innovations necessary for brands to succeed in this evolving landscape. This insightful discussion shed light on the dynamic nature of the D2C market and the opportunities it presents for forward-thinking retailers.
