Scaling Up Your D2C Business
Tips for young entrepreneurs looking to scale up their business.
Young India is looking for convenient and on-the-go solutions that can be easily integrated into daily lives. In a fast-paced world, where food adulteration, air-quality depletion, mental stress, depression, and more are a reality, young millennials are looking for wholesome nutrition and holistic living solutions. The need of the hour is to not just bridge that needs gap by creating targeted offerings but also create accessibility. Direct to Consumer (D2C) is where the future of entrepreneurship lies.
For instance, we are focused on freeing Ayurveda from its complexities and provide modern, accessible solutions to our consumers. Technology and digital media have played an enormous role in realizing this aim. Riding the wave of digitization over the last decade, the Ayurvedic industry has witnessed multifold growth. As someone who’s had the chance to witness and participate in this change, here’s my take on how a traditional industry can reinvent itself for the modern age:
Power of digital and D2C
With digital media, consumer engagement has never been easier for brands. If a consumer wants to differentiate or know more about your offerings, all they need is to look you up online. With multiple touch-points brands can relay in-depth information and directly engage. Brands can leverage the reach of these digital platforms to drive 'reasons to believe', build engagement, derive insights that can further help customize offerings.
At this stage, it’s indisputable that the future lies with D2C. It empowers brands to engage, share stories, and communicate the benefits of their products. It serves as a direct line of communication allowing businesses to understand them better through real-time data insights. This insight into their likes, dislikes & preferences will help make crucial business decisions. D2C empowers you to be agile, have the first-mover advantage, and create a value-adding product.
With D2C, you also have the opportunity to engage beyond products and offers. Brands can offer holistic solutions to consumers along with advice, consultation. They can create engaging content not just speak about the product. Hence, the ability to guide and help users is much higher in an online setting. As the attention span of your consumer reduces, one thing that every entrepreneur needs to crack in D2C is retention. You need to ensure your consumer comes back. So, having a consumer-focussed strategy is what will help you scale and sustain your business in a D2C model.
Make your product speak for itself
In an online world, customer acquisition costs money, time, and effort. Hence, it becomes very crucial for businesses to retain those customers. So, what does this retain strategy really entail? It's pretty simple. Consistently innovate and offer top-quality products. You are selling in an online world where consumers have the platform to voice their reviews. Hence, consistency is key. It will empower you to build trust and brand loyalists. A satisfied customer will always come back for more. That’s the secret to building a sustainable business. As time goes by, this commitment to excellence will help your business grow. In the past, brands invested in heavy marketing budgets to build loyalty, but good product quality is something you cannot replace in an online world.
Consumers, Conversations, Customizations
Understanding your customer is pivotal. The online model offers a more thorough and strategic way to do it. As a business, you need to identify the right audience and then their needs and desires. Ask yourself - why, how, and where would they consume your product?
In the case of Ayurveda, the target demographic includes people interested in proactive and holistic health solutions. They are looking for organic and natural remedies. Once that’s determined, the next steps include the products, the presentation, and their communication strategy. The aim is to appeal to them and create relatability. Every touchpoint from product strategy, packaging, and touch and feel should be tailored to the customer you want to serve. The deeper your understanding of these factors, the better your outcome will be.
Innovation should be at the core of your business
Innovation always starts with the customer. You try to find solutions for problems that your customer is facing. Innovation is all about improving the daily lives of your customers. It's about offering a better quality of life and better nutrition options in our case. So, the starting point is always addressing the gap in customer requirements. For instance, we’ve observed that beauty-related problems like skincare and hair fall are very prevalent. However, the primary reason is lack of good nutrition which is often overlooked. Hence, our strategy was based on customer feedback. We worked backwards from creating a product that’ll fill that need gap. It led us to create a product like 'gummy' that was easy and on-the-go nutrition for our consumers. Innovation also plays a key role in how you design every touchpoint from distribution to communication. So, find the need-gap they’re facing, build a solution, and repeat that process over and over again. That’s the only way to create a lasting impact.
To conclude, I would like to say that to introduce a modern business model to a traditional industry, keep your customer at the centre of what you do. It is important to consistently innovate and adapt to the needs of your consumers. This is what will help you build a sustainable and scalable business in a digital world. Furthermore, be agile and keep an eye on future trends so that you don’t miss out on any opportunities that your competitors might grab.
Article by Ameve Sharma, Co-founder, Kapiva
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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