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NEW AGE BRANDS LEVERAGING DIGITAL MARKETS

Published on
September 30, 2023
Published on
September 30, 2023

According to a Bain and Company report, India’s online shopper base will likely increase to 400-450 million by 2027.

With the rise in E-Commerce platforms and more and more consumers going shopping online, D2C (direct-to-customer) brands are leveraging potential in personalisation of products and improving customer experience. Legacy brands have mostly done business the traditional way: encouraging customers to buy from their brick-and-mortar stores, discount sales and so on. New-age brands often leverage digital markets to attract sales.

THE NEW-AGE-D2C BRAND

New-age brands set themselves apart by selling a resonating story and a product that solves their problem. When multiple products solving the same problem exist in the market, customers choose the product that narrates the most resonating brand story. User data is collected to personalise experiences which foster an emotional connection with the brand.

COHORTS OF THE ONLINE MARKET

Fashion, groceries, and general merchandise categories like personal care are the categories expected to have the highest penetration headroom in the e-retail market by 2027 which was historically dominated by categories such as mobile phones, electronics, and appliances.

EMERGING COHORTS

This shift is partly also due to the entry of a critical consumer cohort: Gen-Z. Gen Z shoppers mostly purchase fashion as the first category online and at entry price points. One in three online shoppers is Gen-Z. A few years back, urban populations with spending power were usually those who shopped online. Today, it has trickled down to middle and low-income segments from rural areas as well. Three out of five shoppers belong to Tier 2 or smaller cities, while one in five belongs to low-to-middle income segments. Hence, D2C brands have expanded their target audience to include these emerging cohorts.

BRAND NARRATIVES OVER PRODUCT?

In the age of sustainability and brand connection, Many young consumers base their buying decisions on brand narratives first and products second. Brands try to make an aspirational impact on their customers as young customers are exposed to an influencer culture where they are motivated to buy products from brands endorsed by their peers.

FOSTERING DEEP CONNECTIONS

New brands make the founders, team and customers the face of the brands. This fosters Deep connection through their personal stories and how it is allied to the mission of the brand. Modern D2C brands pay attention to packaging, ingredients, mode of communication and personalisation. Attention is shifting towards Craft and humanistic design is emerging to the forefront. Emerging successful brands can combine the two with effective marketing strategy and compelling storytelling.

CHANGING MARKETING ARENA

Brands earlier used to earn customers by using advertising at a mass scale, for startups, this isn't a possibility but thanks to Omni-channel retailing and 360-degree customer interaction, they can now share their story with digital consumers, who love being taken care of. Retailers are making the most of social media for marketing and subsequently, growing sales. Many brands like SEPHORA have integrated platforms like Instagram to allow customers to shop directly from their product posts.

TECHNOLOGICAL UPGRADES

Upcoming technologies have the potential to revolutionise the way consumers shop by offering immersive experiences and enhanced product visualisation. Technological upgrades range from voice, vernacular, and image-based search to the adoption of digital wallets, cryptocurrency and innovative payment methods. Most of us are acquainted with Chatbots that make digital transactions more convenient. Nevertheless, Augmented and Virtual Reality, Artificial intelligence and machine learning will continue to play a significant role in personalised marketing, product recommendations, and inventory management.

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