- India is divided into the three parts - India 1, India 2 and India 3. Out of the total population, 11% are purchasing the products online in India while 20% in China and 40% in USA.?
- 120 Mn people reside in India 1 (Top 100 cities) with a total of? $800 Bn worth of consumption and they are contributing 85% of the overall online beauty products, 70% to online delivery,? 70% to online grocery (fruits and vegetables). India 1 consumes 100K items in their lifetime, India 2 consumes 10K items and India 3 consumes 3K items.?
- Consumption Trends: 10% of India's population contributes to 50% of the total consumption. In Aug '23, FMCG sales dropped 8.4% from July 2023 and 11.2% from Aug’22. Amazon grew by just 5% and Flipkart grew by 7-8% only driven mainly by the electronic goods. Overall consumption has slowed down and primary reasons for low consumption are high interest rates and inflation.?
- The Digital Lending segment has a huge addressable market in India with a size of $270 Bn and aims to reach $350 Bn by 2030. India has 3 cr credit card users and one fun fact is 70% iphones are on EMI.?
- To launch a brand you need to figure out what’s the niche and how you will differentiate in the market to make people proud when they are consuming your products. People remember stories -? content, community building and distribution channel are the most important factors.?
- Brand name should resonate with the story and the name which can easily come on SEO. 3 pieces of content framework to build a brand - ESG Framework?Evergreen - relevant for today and tomorrow?Controversial?Growth?
- For scaling a brand -?Building from 0 to 20 crores: focus on building a brand presence on e-commerce platforms like Myntra for fashion brands and generate 80% revenue from these platforms. 20% revenue can be generated from own D2C website. Understanding the marketplace is a very crucial part of the strategy as Myntra promotes fresh arrivals and Amazon values consumer ratings and reviews.? If you are a fashion brand, you can come on top of the list of Myntra by launching fresh designs.?
- This 80-20 strategy will help in reducing the CAC by spending less on D2C website in initial stages and achieve the product market fit however sometimes these Myntra/ Amazon and other marketplaces charges 30% as part of placing your product on top i.e. Performance marketing.?The best way to predict a demand for a particular category product is to discuss with the category manager of Myntra/ Amazon and ask if there is any opportunity/ demand in this particular category.?
- Once you are on the way of building a 100-500 crore brand, then offline presence should be part of the strategy and 30% of sales can generated through performance marketing and rest through organic. The above strategy will give you enough consumer data to understand the patterns and behavior.
- Facts: India is the fastest growing market for healthcare food product i.e. $30Bn by 2026 and Korean beauty Industry is the trendsetter with innovative skincare products across the globe. 25-40% of the clothes purchased online are returned.?
- Technology in brand building: With the help of consumer data and machine learning models, you can do the demand forecasting based on the purchase history and predict the consumer behavior.?
- Emerging Opportunities and trends: There are ample opportunities lying in the pet care, home decor essentials, and men's beauty segment. Live shopping in e-commerce is the emerging trend and China alone holds 10% of the live shopping industry.?
- Difference in B2B and D2C -?
Incredible insights, Hardik! Your expertise in building brands is truly inspiring, and this discussion must have been a treasure trove of information for anyone looking to grow. I'm looking forward to hearing more from you on this topic.
Building Purpose-Driven D2C Brands | Co-founder at JhaJi Store & Mensch Ventures | Engineer & Social Scientist
1 年Haven't gotten around to document my takeaways yet. Can you share yours already?
Business Consulting@EY India|Finance|Delhi University | Gargi'24
1 年Sir saw the podcast 2 weels back it was incredible the various factors affecting and the integration of AL technology as a future and various other things were discussed. I just recollected all the economics what we have been learning about in this podcast and actually saw the real implications. like the association of high price with higher quality and other stuff. Overall Worth watching