Mumbai, October 15, 2023: The remarkable success of Direct-to-Consumer (D2C) brands in India is a testament to the innovative and dynamic young entrepreneurs who have disrupted traditional business models. The recent discussion under CMAI’s ‘Achievers Club’ initiative brought forth invaluable insights from Anurag Singh of Aachho, Siddharth Dungarwal of Snitch, and Mahesh Tekwani of SAADAA.
The captivating discussion on ‘Transforming Business and the Future’ was moderated by
Mr Rahul Mehta, Chief Mentor, CMAI, and revolved around pertinent business issues and debunking myths for traditional business who are looking to transform.
The highlights of the insightful discussion to achieve success in today’s dynamic business landscape were these principles that served as a roadmap for the three young and dynamic entrepreneurs while looking to carve out their path to success:
- Initiating the business journey, even with the possibility of errors, is paramount as starting outweighs having a flawless initial plan.
- Consistent efforts are fundamental for long-term success, fostering brand trust and customer comfort.
- Prioritizing simplicity and focus while eschewing distractions and overthinking allows for adaptable growth and market relevance.
- Embracing innovation and adjusting to shifting market dynamics enhances competitiveness and sustains market relevance.
- Effective inventory management, crucial in the apparel industry, can be optimized through strategies such as promoting slow-moving inventory and embracing technology for data-driven decision-making, streamlining operations and reducing deadstock.
- Trusting data over instincts is pivotal, enabling informed decisions and yielding better outcomes in inventory and overall business management.
The ‘Achievers Club’ by CMAI is an initiative aimed at uniting a consortium of similar-minded apparel brand owners and manufacturers, collectively aspiring to elevate their respective brands to new heights. Participants within this group have the privilege of gaining invaluable knowledge from industry’s foremost thought leaders, change makers, and innovators, enabling them to glean crucial insights for the expansion of their individual businesses.
Additional notes from the ‘Achievers Club’ discussion organised by CMAI with Anurag Singh of Aachho, Siddharth Dungarwal of Snitch, and Mahesh Tekwani of SAADAA :
The first round of the conversation emphasizes that small brands can thrive and compete effectively in the market by focusing on customer-centric strategies, leveraging expertise, and positioning themselves strategically.
Supply chain optimization was a focal point, with the brands successfully streamlining the production process from months to just 20-25 days through targeted bottleneck improvements.
Additionally, an emphasis on e-commerce expansion underscored the significance of not only leveraging marketplaces but also establishing brand-owned platforms to maintain control over profits and foster direct customer relationships. Offline retail also retained its importance, reducing return rates and supporting a multi-channel retail approach. Prioritizing the customer experience emerged as a fundamental rule, emphasizing the need for a customer-centric approach and a deep understanding of customer pain points.
Furthermore, managing product quality and returns effectively through data analysis and proactive measures was recognized as critical for maintaining a healthy bottom line. Small brands were encouraged to compete with larger counterparts by strategically positioning themselves within market segments and prioritizing quality that matches customer preferences.
One of the key lessons from these discussions emphasized the significance of leveraging expertise. Acknowledging that one doesn’t need to possess all the knowledge, the advice highlighted the importance of bringing in experts and learning from their insights to bridge knowledge gaps. Surrounding oneself with capable individuals was seen as an effective means of enhancing one’s own abilities and fostering a culture of continuous learning and growth.
The second round of the conversation touched upon necessity of being a D2C brand & importance of social media. D2C may be one route, but it’s not the only path. Depending on one’s circumstances and vision, other avenues like traditional retail or partnerships with established stores might also be viable.
In the modern business landscape, social media has emerged as an indispensable tool for brands, serving as a vital bridge for effective customer engagement and brand storytelling. Whether operating as a manufacturer, B2B trader, fabric supplier, or accessory provider, social media presents a powerful avenue to swiftly communicate brand narratives to a diverse audience. Leveraging influencer marketing further amplifies brand reach, serving as a contemporary manifestation of traditional word-of-mouth promotion.
Meanwhile, the debate over the superiority of the D2C business model hinges on individual visions and commitments, with its success contingent on unwavering dedication, extensive effort, and strategic alignment with personal aspirations. Achieving visibility and sustained engagement in the D2C sphere necessitates a relentless pursuit of excellence, fostering consistent brand interaction and innovation to cultivate a robust and loyal follower base.
While discounts can be a part of a brand’s strategy, it’s important to focus on creating valuable content and maintaining a long-term perspective for sustained success in the market. Additionally, understanding the dynamics of discounts in marketplaces is essential for brand building in India.
Discounting serves as a potential strategy for garnering consumer attention, yet brands must recognize its optional nature, understanding that discounts are a tool, not an obligatory measure. In the realm of social media, the focus should be on creating value-oriented content that caters to consumer needs, fostering engagement and connection, rather than solely promoting products. While short-term discounting may yield temporary challenges, emphasizing long-term brand value, customer loyalty, and legacy can lead to sustained success. Notably, brands can wield greater control over pricing and promotions by establishing their own marketplace presence, a practice that aligns with the Indian market’s preference for affordable prices and end-of-season sales. Additionally, the manipulation of perceived discounts through pricing strategies is a common but controversial tactic adopted by numerous brands.
The conversation also highlighted the importance of hero products, the distinction between D2C and marketplace strategies, the accessibility of starting an online presence, the evolving definition of a brand, and the potential significance of a brand name.
For marketplaces, emphasizing specific hero products that sustain demand throughout the year is crucial, anchoring the business. A strategic blend of hero products and fresh arrivals on D2C websites can optimize sales, while maintaining a balance between marketplace promotions and the autonomy of pricing on personal websites can amplify control.
Entrepreneurs, including small manufacturers, can leverage user-friendly platforms to establish their online presence gradually. Recognizing that a brand encompasses more than a mere label, it encapsulates the narrative and customer experience, requiring time and a robust consumer connection. While marketing and branding strategies are interconnected, the former encompasses pricing, distribution, and advertising, whereas the latter centres on crafting a distinct brand identity and fostering consumer allegiance. Furthermore, the significance of a brand name, whether derived from personal or symbolic origins, ultimately stems from the efforts invested in business development and consumer engagement, with some brands opting for a name linked to a narrative, while others prioritize the business and customer experience.
