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New Delhi: Hopes are high across all sectors as India buckles up for Union Budget 2022. One of the key areas that investors and the market, in general, would look forward to, is what the finance minister has on her platter for Direct To Customers (D2C) businesses in India.
The sector is thriving with over 800 D2C brands in India and over 100 million online shoppers. As per Yourstory, the sector is poised to create a $100+ billion market opportunity by 2025, growing at a CAGR of 25 per cent between 2020-2025.
Let us see what experts in the industry have to say about the upcoming Union Budget.
“India is a land of opportunities where we are constantly witnessing a lot of start-ups flourishing. Recent times have witnessed more internet penetration and this can be used as an advantage. The D2C brands reach customers and sell directly online. In 2023, the expectation is that many digital-direct-to-consumer startups and businesses will get a greater chance to grow and compete with some of the leading names in the industry, said Sargam Dhawan, Director, Tressmart Marketing Pvt and Makeup Eraser India. Mrs Dhawan also added that the 2022 gap in financial literacy is still an obstacle that needs mentoring and support towards sustainability still needs to be extended.
Anurag Chhabra, Co-Founder, Bevzilla opined that, “The D2C market continues to grow bigger in reach and size. The omnichannel marketing, hyper personalisation and growth of niche categories are sure to gain momentum in 2023″. Chhabra believes technology is expected to shape a better experience for the customers and that Union Budget 2023 will support more of the augmented reality (AR), Virtual reality (VR) and impactful metaverse for a fulfilling experience.
“The optimism with D2C brands is running high as we have an appropriate product-line to address the immediate concerns of the customers. There will be more information sharing and a high level of customisation. As a result, this will contribute to the development of stronger business models and better shaping of the future,” said Mr Chhabra.
Unox India MD Vikram Goel said that this upcoming budget has the potential to transform the D2C sector into a more vibrant and inclusive one and Unox India is looking forward to it with a lot of hopes and expectations.
“As the demand for direct-to-consumer (D2C) products and services continues to grow, being a B2B focussed brand, UNOX India expects the government’s support to strengthen the D2C Indian ecosystem and to expand the business. These expectations might include investment in e-commerce infrastructure: As e-commerce expands, businesses anticipate the government’s investment in infrastructure that will support online firms and enhance the nation’s overall e-commerce ecosystem. Adding onto the same, more funding for digitization: As the D2C model heavily relies on digital channels for client acquisition and sales, more funding for digitization can be provided to develop businesses’ digital capabilities and expand their customer base in various zones. Put the customer first: Since D2C businesses deal directly with customers, we expect more protections for their rights. Hence, supporting the Direct-to-Consumer (D2C) business model needs to be a major thought as the sector is now geared up to witness further traction through the upcoming budget,” said Mr Goel.
Ms Paridhi Goel, Co-Founder of Loveearth, said that D2C brands witnessed a tremendous growth in 2022. She said the growing acceptance of eCommerce, online payments and affordable internet access have fueled the explosion of D2C business.
“The new D2C business has moved above the traditional methods and has started reaching the market with customer- friendly prices and also buyers through social media platforms. Now the brands will be operating without the fear of the new COVID wave, and we can find the new brands are moving towards the holistic approach and well-being of the customers.
Not just this, but these D2C Brands are now expanding and growing beyond the digital channels and spreading their footprint across offline channels. However, digital channels have helped these brands penetrate different markets. Social commerce is another area where D2C players can do the magic and be gamechangers,” said Ms Paridhi Goel.
Mr Pankaj Maini-Founder, Boi Bae said that the D2C brands, that have seen immense growth in 2022, are moving forward to grow in 2023. Mr Maini further opined the three trends that will dominate the D2C space in 2023.
“Speaking about the 3 trends that will dominate the D2C Space in 2023, Hyper-personalisation, i.e. direct to consumer model, is redefining and is liked by young millennials and people of all age groups. New-age technology advancements like AI are giving a more immersive and smooth shopping experience through a combination of AI, VR and AR. This also leverages the shopper’s activity and purchase for future reference too. Not just this, but the best part about D2C brands in today’s time is how each brand is coming forward as a sustainable brand and is proving itself as sustainable and conscious in the best possible manner. Thus, the growing acceptance of e-commerce, online payments and affordable internet access have fueled the explosion of D2C business,” said Mr Maini.
Kanika Gupta , Co – Founder Yourspex by GKB Eyecare, said that considering the potentiality of a massive growth and reach of the D2C sector in India in 2023, the sector has become wider and more competitive, and adapting to the latest trends is something you need to keep your business growing and to make an impact that has the power to make your business stay at heights.
On customization, Ms Gupta said, “People these days are more clear about their opinions and offering them an option to add a personal touch or alter your products or services to suit their preferences or requirements is the key to making your market. With customization, you get the chance of highlighting yourself in a unique way that has more power to influence the market.”
When it comes to customer experience, she is of the opinion that, “If you’re able to make people feel special with your products and services, you’re already many steps ahead of those who are just using normal tactics and trying to gain people’s attention and build their brand. The three things for creating a customer experience strategy are discovery, engagement, and punctual delivery.”
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