EMPOWERING HOMEGROWN D2C BRANDS IN THE EVOLVING RETAIL INDUSTRY DYNAMICS
Digitalisation is impacting every aspect of business today. Customers no longer merely purchase products or services; instead, they look for meaningful experiences. This shift makes it essential for businesses to understand customer preferences to create personalised experiences. Distinctively focusing on delivering superior customer experience through curated selections, efficient logistics, and efficient customer service, D2C Ecommerce came into existence in 2022 to cater to the evolving aspirational needs of consumers.
Headquartered in Gurgaon, Haryana, D2C Ecommerce is India’s first technology-based retail chain for fast consumer goods. It is also India’s first offline marketplace, allowing D2C brands to enter offline retail at the cost of a warehouse.
D2C Ecommerce is at the forefront of the retail tech revolution, facilitating sales both online through its portal and offline through its retail stores, known as D2C Mall. D2C Ecommerce has established itself as a leader in building and scaling homegrown D2C brands across various categories, including beauty and personal care, fashion, lifestyle, home and kitchen, and electronics.
D2C Ecommerce’s Journey: A Tale of Innovation, Quality, and Affordability
D2C Ecommerce was incorporated with a vision to build and scale homegrown Direct-to- Consumer (D2C) brands, specifically targeting middle-class and aspirational consumers who prioritise quality and affordability. From the outset, the company has focused on strategic growth. In July 2022, it acquired AccessHer, followed by Luxura Sciences in September 2022, and Hungama Hi-Life in April 2023.
These acquisitions have been pivotal in diversifying the company’s product offerings and accessing new market segments. With an omni-channel approach, supported with Bollywood influencers and data driven performance marketing, D2C Ecommerce is well placed to make a mark in D2C World of the country. This strategy has allowed the company to effectively cross-sell and upsell, creating better synergies and economies of scale across its multi- brand portfolio.
Currently, D2C Ecommerce boasts a portfolio of over 15 brands, 25 categories, and more than 5000 products, serving over 500,000 satisfied customers. The company is committed to providing a superior customer experience, which has fostered strong brand loyalty and trust.
Overcoming the Hurdles Along the Way
Every business journey comes with challenges. Initially, D2C Ecommerce was chasing revenue growth, and relied heavily on physical distribution models that involved multiple intermediaries, which resulted in high marketing and customer acquisition costs. To tackle these issues, they adopted a leaner inventory model, reduced consumer acquisition costs, and worked on increasing both the average order value (AOV) and customer lifetime value (LTV). The company’s rapid growth and strategic initiatives reflect the team’s dedication to making aspirational products accessible to everyone.
Industry Evolution Over the Years
The startup ecosystem has undergone a remarkable transformation over the years. In the past, start-ups heavily relied on traditional distribution models and marketplaces, which often resulted in high marketing and customer acquisition costs. However, the landscape has shifted significantly. Today, there’s a strong focus on innovative and disruptive business models. For example, many D2C brands now prioritise selling directly to consumers through their platforms and employing omnichannel strategies to create a seamless customer experience.
D2C Ecommerce has embraced this shift by offering a diverse range of products across various categories. Modern start-ups are increasingly consumer-centric, using data analytics to better understand and meet consumer expectations. This shift has resulted in leaner inventory management and lower consumer acquisition costs, ultimately increasing average order values and enhancing lifetime customer value.
The Significance of R&D: A Key Driving Factor
D2C Ecommerce believes that Research and Development (R&D) is essential for the growth of any company, and D2C Ecommerce is no exception. As the owner of D2C Ecommerce, Mr. Gupta has witnessed first-hand how the company’s dedication to innovation through R&D has fuelled its success and set it apart in a highly competitive market.
R&D allows the company to continuously refine its product market fit, ensuring that it stays ahead of market trends and consumer preferences. For instance, the acquisitions of brands like AccessHer, Luxura Sciences, and Hungama Hi-Life have not only broadened the company’s product portfolio but also introduced innovative products that resonate with its target audience. These acquisitions and the integration of their unique product lines would not have been possible without a strong focus on R&D.
Founders Take on Leadership
Being Founder of D2C Ecommerce, Mr. Manish Gupta perceives leadership as a dynamic role that goes beyond simple management. He believes that effective leadership is about inspiring and guiding a team toward a shared vision while fostering an environment of trust, innovation, and continuous improvement.
Leadership requires being adaptable and open to new ideas. For instance, this innovative business model of the company and its ability to pivot in response to new market demands have been crucial to its rapid growth and success. Additionally, a good leader should act as a coach and mentor, helping team members develop their skills and grow professionally.
Nurturing a Culture of Innovation, Inclusivity, and Excellence
Reflecting on D2C Ecommerce’s work culture, Mr. Gupta stated that “We strive to foster an environment where creativity and collaboration thrive. Our mission to bring aspirational products to the masses at affordable prices shapes everything we do.” He always encourages his team to think outside the box and continuously seek better ways to serve the customers. Mr. Manish Gupta believes in the power of diverse perspectives, and his team is a melting pot of talents from different backgrounds, all working together to achieve common goals.
Teamwork and open communication are key aspects of the company’s culture, ensuring that everyone’s voice is heard and valued. The company prioritises the growth and development of its employees by providing numerous opportunities for learning and professional advancement. This helps the team members stay ahead in the rapidly evolving e-commerce landscape.
“D2C Ecommerce is more than just a workplace; it’s a community where every member is empowered to innovate, grow, and make a meaningful impact. This vibrant and supportive culture drives our success and makes D2C Ecommerce a great place to work,”emphasises the visionary leader, Mr. Manish Gupta.
Gearing up for the Future
As D2C Ecommerce continues to stay ahead of the curve, it is actively expanding its presence in offline channels by launching D2C Malls across the country. These malls will serve as one-stop lifestyle shops, offering a curated selection of the best-selling products across various categories. The company aims to make D2C Mall the go-to lifestyle store for the mass consumer segment in India.
D2C Ecommerce further focuses on building and scaling homegrown D2C brands in sectors like beauty and personal care, fashion, lifestyle, home and kitchen, and electronics. The company is also committed to enhancing its go-to-market strategies by leveraging cross-sell and upsell potential, optimizing synergies, and achieving better economies of scale.
“Providing a superior customer experience is at the core of our business. We strive to achieve this by building strong brand loyalty and ensuring a seamless shopping experience both online and offline,” adds Mr. Manish Gupta.
Milestones and Achievements: A Glance
Since its inception, D2C Ecommerce has made tremendous progress. The journey began with a significant increase in valuation following the acquisition of Access Her. By October 2022, the company’s valuation had surged further after acquiring Luxura. In terms of revenue, the company achieved impressive figures in its first year and second year. In the current FY 24-25, the company is on mark to achieve their first profitable financial year. D2C Ecommerce’s innovative business model, which includes a multi-D2C brand retail platform, has been instrumental in this success.
Words of Wisdom
Mr. Manish Gupta advises budding entrepreneurs to always prioritise their customers and remain adaptable. It is essential to stay customer-centric and flexible in a dynamic market environment. Moreover, never underestimate the power of innovation and differentiation. By constantly innovating and finding new ways to engage with customers, businesses can create strong brand loyalty and drive significant growth. Lastly, resilience and persistence are crucial for success.
