Direct-to-consumer is a field of great interest for everyone. It led to many young startups building popular brands online with D2C as their core distribution. D2C has now opened new possibilities, and India’s D2C market is a goldmine waiting to be tapped. A young, tech-savvy population of 1.4 billion, fuels a booming online retail industry, projected to reach $60 billion in just five years. This digital gold rush presents a unique opportunity to garner a higher market share and introduce new products in everything from fashion to electronics.
The Hiveminds Playbook: A Guide to D2C Success
The playbook titled The Hiveminds Playbook: A Guide to D2C Success delves deeper than surface trends. It identifies the intricate dance between macro factors like India’s economic growth (projected to be the world’s third-largest by 2027) and micro details like consumer preferences for D2C platforms versus established marketplaces.
With the changing consumer profile of India, the way media planners look at the audience cohorts has also changed. Even the long-used socio-economic classification has changed from classifying consumers based on asset ownership and education, to now education and occupation. In the new India Socio-Economic Classification (ISEC), the households with educated women are given a higher weightage in the order of segments.
Jyothirmayee JT, Founder and CEO of HiveMinds believes “India will chart its unique path to consumption, and we are confident that D2C will be a defining force in the future of Indian Retail.”
The playbook also reveals some interesting consumer insights. For instance, 52% of consumers in the age group 35-44 years trust influencers while only 36% of consumers in the 25-34 age group, trust influencer recommendations while making purchase decisions. Moreover, 67% of women embrace new brands in groceries, however, only 48% of men explore new brands in grocery categories.
The high point of the playbook is the HM 4E Shopper Matrix, which is a unique classification and sizing of consumers based on their contribution to the Indian e-commerce GMV and their relative prosperity. This classification only talks about the digitally transacting consumers, a total size of about 220 mn.
The 4E shopper Matrix, reveals 4 clear consumer cohorts –
Emerging online shoppers – Those who start buying online through input-first initiatives, such as government subsidies, depend largely on education and gradual exposure to increase their contribution to overall e-commerce GMV. The estimated size is 40mn.
Evolving online shoppers – They are the ones who place 1 or 2 orders per year online and start with gateway categories like mobile phones. The estimated size is 100mn.
Established online shoppers – This is the most active consumer cohort, placing at least 1 online order per month. They explore and discover new products and categories online and look for opportunities to upgrade. The estimated size is 70mn.
Exclusive online shoppers – At the top of the classification is a small cohort of customers who want exclusivity in their products and shopping experiences. They make large and frequent purchases and expect outstanding customer service. This size is about 10 mn.
Deepti Bhadauria, Chief Strategy Officer, HiveMinds points out “In the sublime world of consumer insights, it is prudent to accept that the customer is not a trend”.
There are interesting strategy models in the playbook that can aid marketers map the category they are operating in and use the suggestions accordingly. The playbook also delves deep into the impact of Quick Commerce on D2C brands and suggests some guidelines for the brands to grow through it.
The playbook is a useful marketing tool with actionable insights and recommendations for using data, tech, and consumer behaviour, delivering success via digital marketing for D2C brands.
The playbook was exclusively launched for CMOs and CEOs of D2C brands and is a limited-edition print.
