Millennials Fuelling The Acceptability Of Indian D2C Brands Across Border

Dharmender Khanna Nov 08, 2022

Ecommerce has become a crucial component of the global retail framework. Global ecommerce sales in 2021 amounted to around 4.9 trillion USD. This value is expected to increase by 50 per cent over the years, touching about 7.4 trillion USD by 2025.

Since the emergence of the internet, the commerce sector has experienced substantial change, with millennials (aged 26 - 40 years) propelling the increase in cross-border Direct-to-Consumer (D2C) online sales. According to Mintel research, 43 per cent of Indian Millennials spend more money on healthy food and snacks. Furthermore, older millennials (aged 32 - 40 years) continue to spend substantially on activewear and accessories (41 per cent) and in-home gym equipment (36 per cent).

It has enabled D2C brands to communicate quicker and easier, have a comparative advantage, greater efficiency, and extended e-commerce.

The Paradigm Shift from Offline to Online

The coronavirus (COVID-19) pandemic profoundly impacted global ecommerce and online consumer behaviour. As millions of people stayed home to avert the virus's spread, digital channels have emerged as the most popular alternative to crowded storefronts and in-person shopping. As a result, most consumers prefer to continue buying through digital and physical channels, emphasising the necessity of omnichannel capabilities in their international commerce strategies.

As per ecommerce demographics, 56.6 per cent of consumers prefer to purchase online than in a brick-and-mortar store. Fashion, lifestyle, luxury, and fragrance are popular international cross-border e-commerce categories.

Brands are increasing their efforts to develop an in-depth understanding of cross-border markets– across all channels and consumer touchpoints – to provide personalised, consumer-centric, and cost-competitive shopping experiences. Brands that understand the significance of integrating direct international ecommerce into their existing framework use omnichannel marketing solutions to help them create a consequential consumer shopping experience.

For example, Brillare, a homegrown personal care brand, has transitioned from a B2B business to a D2C enterprise. It operated as a B2B brand for nearly 10 years when the COVID-19 pandemic struck. During that period, the brand realised scaling up online was the way to move forward. So, Brillare launched its website in November 2021. Today, things have changed for the better for the business. The company is currently expanding its online footprint. Furthermore, the company is expanding its business overseas and has entered the US, Canada, and Brazil through online ecommerce.

Artificial Intelligence (AI) and Natural Language Processing (NLP) technology have made it simple for brands to reach and understand consumer behaviour. For instance, the 'try on' feature allows customers to try on products like footwear and eyewear using technology and filters. Consumers can keep their favourite products on their wish lists for later consumption. Furthermore, online shopping provides exciting discounts and offers to entice new buyers, topped with easy exchange and return policies.

Social Media and Social Shopping

Social shopping is what transpires when ecommerce meets social media. It integrates elements of social networking, such as groups, communities, recommendations, and conversations, along with selling products and services online.

Social media platforms are making it simpler for consumers to shop online. For instance, Instagram's Shoppable Feed, Pinterest’s Buyable pins, Instagram Stories, and Snapchat's 'Swipe Up' external links have paved the way for hassle-free online shopping.

Moreover, User Generated Content (UGC) helps consumers to make purchasing decisions. For example, recommendations and reviews from niche influencers across various sectors, such as lifestyle, help international brands spread the word and educate consumers about their products. Brands provide influencers with promo codes that include their names so their followers may use them while purchasing any product- a win-win situation for both brands and influencers. Since shoppers trust influencers more than brand commercials, this approach may provide them an advantage over traditional marketing. The influencer marketing industry in India was valued at nine billion Indian rupees in 2021. With a 25 per cent growth rate, its market value is expected to reach 22 billion Indian rupees by 2025.

Influencers create engaging content that links to the brand's website. It results in increased brand engagement and website traffic. Social media-driven engagement efforts help build brand loyalty and drive D2C sales, generating higher ROI.

Going Direct in the Digital Era - The Way Forward

Thousands of brands and products are available and competing in online marketplaces. In such instances, the product itself is the differentiator. Brands can dodge the Amazon clutter and focus on developing their website and scaling up D2C sales. They can utilise digital solutions like ecommerce management and development, digital marketing, conversational commerce, etc., to ensure the smooth functioning of their supply chain and effective marketing campaigns. Brands can reduce the risk of shipment damage by selling directly through their website and maintaining an enabler ecosystem— having complete control over logistics and distribution channels.

Website-based sales provide brands with data-driven purchasing pattern insights to create a more personalized value proposition. Advanced analytics help better understand the ever-evolving millennials’ preferences and behaviours by leveraging the vast data sets generated by digital tools and platforms.

Consequently, D2C ecommerce can help brands build stronger customer relationships and increase repeat purchase rates and customer retention. It will not only boost direct-to-consumer sales, but it will also drive long-term future growth prospects.