Over the last couple of years, the consumers’ demand and way to shop has evolved. Direct-to-consumer (D2C) is a way companies are selling things without middlemen using websites, apps, stores, and factories to sell. According to a report by Redseer Strategy Consultants, the Indian direct-to-consumer (D2C) market is projected to reach a gross merchandise value (GMV) between USD 30 - USD 35 billion by 2027.
Deepak Gupta, Co-founder, of Bombay Shaving Company takes large offline brands online, running direct-to-consumer (D2C) businesses for brands like Durex, Enpha, and Emer. He introduced the brands and explained what innovation means to them as founders and for their respective brands.
Gupta highlighted the importance of empowering the team for problem-solving and driving innovation. He emphasised the role of over-communication by founders to ensure a continuous process.
To challenge larger competitors like Gillette, Philips, and V-Tweeners, he shared a strategy they used called 'Razorpreneur'. They engaged young people to sell razors in unconventional ways, leading to significant sales and free marketing reaching millions. Deepak asks other founders about strategies they use to compete effectively against numerous brands in the market.
Innovation In Competition
Ripunjay Chachan, Founder, of Wellversed Health, a health and supplement nutraceutical company with multiple brands like Wellcode, Ubifit, Keto5, and Zero Sugar in its portfolio.
He emphasised the importance of innovation as the backbone for startups to gain a competitive edge over large companies with unlimited resources. Wellverse has been operational for five years, with investors including Jubilee, Foodworks, and Jugarath Singh, who is also their brand ambassador. The company currently has an annual recurring revenue of around Rs 120 crore.
Shaily Mehrotra, Founder and CEO, Fixderma India is the CEO and founder of Fixderma India, a 14-year-old skincare brand operating in a highly crowded market with around 25,000 registered companies.
She stressed the importance of innovation for success while maintaining a balance between new ideas and drawing inspiration from existing products. Fixederma started by selling through dermatologists in India and now exports to 32 countries.
Four years ago, they entered the direct-to-consumer (D2C) market, which is experiencing exponential growth, and a year ago, they ventured into the over-the-counter (OTC) segment. The company has four verticals, making it well-balanced. They have innovative products like Negrifix for a skin condition called negrican acanthosis and Phubetic, a foot cream for diabetic patients, which have earned them awards from the Indian government.
Evolving Consumer Behaviour
Akshay Shivpuri, Founder, SAADAA co-founded SAADAA with Mahesh over 3 years ago, starting from a Jaipur garage. They aimed to simplify customers' choices by decluttering options, be it restaurant menus or clothing. They launched with just one wedding collection, transitioning from their previous hospitality business. Despite being a "COVID baby", SAADAA grew rapidly from 5 to 130 people while bootstrapped.
They sell only 10 timeless, essential styles online, not considering themselves a typical fashion brand. The focus is curating thoughtful wardrobes across genders. For SAADAA, innovation means great ideation through keen observation, coupled with agile execution to minimize choice overwhelm for customers.
Sharma stressed the importance of adaptability and innovation in keeping an organisation relevant in a rapidly changing market. They emphasise the need for businesses to understand and respond to evolving consumer preferences, especially in areas like sustainability and wellness, to maintain competitiveness and long-term success.
Chachan reiterated that innovation is crucial for their direct-to-consumer (D2C) business, giving them a competitive advantage over traditional distribution models. Despite limited resources, their direct connection with consumers enables them to innovate effectively. In the health and wellness sector, they face trends that may not be scientifically valid in the long term.
“Ideas must be passed to the relevant team, break it down to the fundamentals, making sure every team member, whoever is from a different domain, can also contribute to the idea. Because innovation is a collaborative effort,” he added.
Winning With Old-school Strategies
Mehrotra pointed out that many young entrepreneurs focus on short-term trends to make fast money. But she suggests a smarter approach, have some products that people always need, like butter chicken curry, alongside trendy items. They focus on quality for the essentials and add trendy products to stay in the game. Despite being a dermatology brand, they adjust to changes, like the rise in sunscreen awareness thanks to social media, which has boosted sales by 40 per cent.
“There is no black book to success and how to build a team and how to keep it together. It is a process in which you keep trying and doing it, correcting it, where you are wrong, where things are wrong,” she mentioned.
Shivpuri emphasised that their brand doesn't follow trends when introducing products. Instead, they focus on providing diverse experiences with their limited range of styles. Their innovation strategy revolves around empowering their team to experiment and collaborate, allowing them to generate new ideas and approaches. For instance, they create over 100 videos monthly, showcasing their 10 styles in various ways. Their office conducts exercises to encourage creativity and provide resources for their team to explore different selling methods.
Lessons From D2C Startup Founders
Sharma defined success in terms of customer satisfaction and loyalty, emphasizing the importance of consumer love and repeat purchases. He emphasised the significance of staying loyal to your core values, stating that this is crucial for long-term business success.
Mehrotra emphasised the importance of patience and perseverance in business, cautioning against rapid scaling that can lead to instability. She highlighted the difference between venture-funded and founder-funded companies, noting the latter's tendency to proceed more cautiously due to using their own resources. Shivpuri shared their goal of reaching every wardrobe in the country while maintaining a focus on customer experience and empowering their team to experiment and take ownership.
Deepak defined success in terms of customer satisfaction and loyalty, emphasising the importance of consumer love and repeat purchases. Chachan talked about entrepreneurship being a rollercoaster ride and emphasised the importance of having a clear vision. He suggested that stability is elusive and highlights the need to continuously evolve and break out of comfort zones to grow the brand. The core message is about the significance of vision and adaptability in navigating the challenges of entrepreneurship.
