Expert D2C insights: Prioritising consumer-centricity in omnichannel expansion strategies

Direct-to-consumer (D2C) brands, once solely reliant on online platforms, are now embarking on a quest for offline expansion, recognising the need to establish a tangible presence beyond the confines of the digital realm. This seismic shift underscores a profound evolution in how brands engage with their audiences, blurring the boundaries between online and offline channels to create immersive and seamless shopping experiences.

Against this backdrop, a panel discussion titled ‘Omnichannel uprising: D2C brands' quest for offline expansion’ during the D2C Playbook track at TechSparks Mumbai brought together industry experts to probe the depths of strategic manoeuvring and market dynamics, exploring the intersection of online and offline strategies in the age of direct-to-consumer (D2C) brands. Moderated by Arjun Vaidya, Co-founder of V3 Ventures I Founder @ Dr. Vaidya's (acquired), the panel featured insights from Rahul Jain, Co-Founder and CEO of Drums Food (Epigamia), Ahana Gautam, Founder and CEO of Open Secret, Richa V Kalra, Co-founder, Candyskin, and Yogesh S. Shinde, Founder and CEO, Bamboo India.

Embracing Change: The Shift to Omni-Channel Strategy

Arjun Vaidya opened the floor, reflecting on his initial scepticism towards offline retail in the era of burgeoning online shopping. He shared a poignant observation: "I buy 99% of what I buy online; who buys anything offline?" This sentiment was common among D2C enthusiasts until the resurgence of offline retail became undeniable. Vaidya recalled, "We got a rude awakening that offline is back and with a bang."

Drum Foods' Jain emphasised the necessity-driven pivot to online channels during the pandemic, highlighting how it addressed supply disruptions while reaching new consumers. The onset of the COVID-19 pandemic brought about significant disruptions, necessitating a shift towards D2C channels. The pandemic-induced supply disruptions and frequent changes in rules and policies propelled their transition to D2C. As quick commerce gained momentum, online shopping became more prevalent, offering a viable channel to reach new consumers and address discoverability challenges.

Regarding the balance between online and offline channels, Jain emphasised the importance of understanding consumer behaviour and preferences. While online consumers tend to exhibit homogenous purchasing behaviour, offline channels present diverse consumer segments and retail formats. To capitalise on offline strategies effectively, it's crucial to tailor approaches to each microcosm within offline retail, such as modern trade, convenience stores, or stand alone supermarkets. Therefore, he advocated for an omnichannel strategy, recognising that while online platforms facilitate discovery, offline channels often drive conversions and purchases. Rahul believes that "omni-channel has to be the way to go" as brands navigate the clutter and seek brand defensibility.

The Experiential Element: Offline's Role in Complex Categories

Richa V Kalra of Candyskin underscored the indispensable role of offline retail in experiential categories like lingerie. She said, "There is a tactile experience attached to lingerie," highlighting the need for personalised assistance and consumer engagement. Kalra's insights reflected the nuanced challenges and opportunities inherent in bridging online and offline experiences.

Seconding Jain's viewpoint, Ahana Gautam of Open Secret believed that adopting an omnichannel approach is how to build successful brands in India. "I strongly believe that to build a big brand in India, the playbook is omni-channel. It's not about pitting online against offline; every channel has a strategic role to play. As a founder, it's crucial to identify the role of each channel and leverage it in our Go-To-Market (GTM) strategy."

Despite the growing prominence of online shopping, most shopping still occurs offline, making it a crucially profitable channel for brands. She discussed their presence across four major channels: D2C, ecommerce platforms such as Amazon and Flipkart, quick commerce, and offline retail. Gautam advocated for a nuanced approach, wherein different product SKUs are tailored for each channel based on the unique role it plays in consumer behaviour.

"As a brand, our goal is to ensure that we have the right product to fulfil the strategic role of each channel. I strongly encourage fellow founders in the business of building brands to leverage every channel available. It's not being labelled as a D2C brand; it's about meeting the consumer's needs. If our consumers are shopping across various channels, then we need to be present across all of them," she urged.

Yogesh S. Shinde of Bamboo India spoke about the importance of a meticulous approach to general trade (GT) expansion, stating, "I believe there's no inherent bias towards any particular channel. Our decision to start online was primarily driven by its straightforward market entry strategy and the absence of middlemen, making it convenient to list products on platforms like Amazon or Flipkart without any cost. However, I recognise the challenges inherent in offline retail, especially in GT, where barriers exist due to preconceived notions about certain products," Shinde said.

However, Shinde affirmed that while online channels may offer visibility in the short term, GT is essential for the sustained success of D2C brands.

The rise of quick commerce and general trade: Unlocking growth opportunities

Vaidya noted the emergence of quick commerce as a viable avenue for D2C brands. He observed, "More nuanced, more expensive products are selling on quick commerce," highlighting its potential as a corollary for GT.

Jain chimed in, "In GT, the harsh reality is that it must be built methodically, step by step. There are no shortcuts or growth hacks; it's not like experiencing a sudden surge in growth as seen in other areas. Many have attempted to expedite GT expansion through big distributors, only to find themselves facing issues with product placement and returns months down the line."

When venturing into GT, it becomes imperative to carefully curate store selections and approach them strategically to ensure alignment with the target market. Creating consumer interest within GT outlets is paramount, given the diverse product offerings available. "For instance, during our GT expansion, we implemented a strategy called Project Glue. We designated specific areas within GT outlets, set up sample boxes, and stationed promoters for three days to engage with consumers. This approach capitalised on the high frequency of purchases in GT outlets, leading to increased brand awareness and repeat sales," Jain shared.

As the retail ecosystem continues to evolve, integrating online and offline channels will remain instrumental in unlocking new opportunities and shaping the future of retail.