The IReCxD2C Summit in Bengaluru served as a critical touchpoint for direct-to-consumer (D2C) brands and industry leaders to dissect the evolving landscape of 2024. In a landscape marked by change and competition, the ability to adapt, innovate, and prioritize customer needs emerges as the guiding principles for success. As the journey of D2C brands unfolds, one thing remains certain: the future of retail belongs to those who dare to embrace change and chart a course towards innovation.

Sandip Hazra, Director and E-commerce Implementation Lead at PwC India opened the session by tracing the evolution of the Indian consumer market. From foreign brands in the early 1900s to supermarkets in the 2000s, and e-commerce marketplaces in the 2010s, each era has had its protagonist. Today, the spotlight is on D2C brands.

"Indian consumer behavior has undergone a dramatic transformation, thanks to tech-savvy, online-first companies. These D2C brands have redefined our buying habits, influencing everything from our snack choices to luxury retail," Hazra noted.

With over 9,000 D2C brands in India, projecting a cumulative revenue of $25 billion and expected to grow five-fold in the next five years, the sector's potential is enormous. However, Hazra emphasized that this rosy picture often overshadows the challenges, such as venture capital hesitancy and the shifting focus from performance marketing to brand marketing.

The Souled Store: A Pop Culture Phenomenon

Harsh Lal, Co-founder of The Souled Store, shared his brand’s journey from a six-month fashion project to India's leading pop culture merchandise brand. Founded by a lawyer and three engineers, The Souled Store was born out of a love for pop culture and a gap in the market for affordable, authentic merchandise.

"We were 23-24-year-olds dissatisfied with our jobs. Our savings were minimal, and we started The Souled Store as a side project," Lal recounted. "Fast forward to 2024, and we are India's biggest brand for official merchandise with over 200 partnerships, including Disney, Warner, and Netflix."

Lal highlighted the brand's focus on profitability from day one. Bootstrapped until 2018, The Souled Store emphasized sustainable growth over aggressive scaling. "Our partnerships with major licensors helped us build credibility and trust. For us, profitability was built into the business's DNA," he said.

Litmus: Bridging Supply Chain Expertise with Consumer Demand

Ankit Bachhawat, Co-founder of Litmus, leveraged his supply chain expertise from his previous venture, Source Light, to solve logistical challenges for his D2C brand. Launched in 2020 during the pandemic, Litmus focuses on men’s and women’s grooming products, a sector that saw a surge in demand during COVID-19.

"Male grooming is growing exponentially. Our products have found significant traction, with 60 percent of our consumers being men," Bachhawat explained. He emphasized the importance of brand marketing over performance marketing for Litmus, noting that the brand’s aspirational value helps drive customer engagement and loyalty.

Miraggio: Crafting a Niche in the Fashion Handbags Market

Mohit Jain, Founder and CEO of Miraggio, started his entrepreneurial journey at 20. Miraggio, a leading brand in fashion handbags, has grown over 120 percent year-on-year. Jain’s focus on understanding consumer needs and creating a compelling brand narrative has been central to Miraggio’s success.

"In a crowded market, understanding our consumers on a deeper level was crucial. We obsess over every detail, from ad imagery to the packaging experience," Jain said. He also highlighted the importance of repeat purchases and customer lifetime value in achieving profitability.

Accessorize India: Customizing for the Market

Kumar Saurabh, CEO of Planet Retail Holdings and an industry veteran with two decades of experience, shares insights into the adaptive strategies of Accessorize in the Indian market. Formerly following a push model akin to its global counterparts, Accessorize India embarked on a journey of customization. By forging direct partnerships with suppliers and designing products tailored to Indian tastes, Accessorize India has embraced a pull model, catering to the nuanced preferences of its diverse consumer base.

Saurabh emphasizes, "We recognized the limitations of a one-size-fits-all approach. By curating our product offerings and infusing elements of fusion jewelry, we've witnessed a significant uptick in our D2C sales. It's an ongoing process, but one that aligns seamlessly with our commitment to meeting the demands of the Indian market."

Embracing Change: The Turms Intelligent Apparel Story

Surender S Rajpurohit, Founder and CEO of Turms Intelligent Apparel, narrates a tale of transformation and resilience. With a background spanning corporate leadership roles and venture capital investments, Rajpurohit's foray into the world of D2C began with a bold acquisition. Turms, once grappling with a staggering deficit, has now emerged as a frontrunner in the apparel industry, boasting endorsements from the likes of Mahendra Singh Dhoni.

Rajpurohit elucidates, "Our journey underscores the importance of operational efficiency and customer-centricity. By optimizing backend processes, from packaging to warehousing, we've achieved remarkable cost savings and enhanced customer satisfaction. Brand positioning and performance are symbiotic—each contributing to the holistic brand experience."

Empowering D2C Growth: The Role of Technology

Abhinav Midha, Vice President of Sales at GoKwik, sheds light on the pivotal role of technology in propelling D2C growth. Recognizing the challenges posed by India's cash-on-delivery market and high rates of return, GoKwik embarked on a mission to streamline operations and optimize conversion rates for D2C brands.

Midha articulates, "Our suite of products is designed to empower D2C founders by alleviating operational burdens and enhancing user experiences. Whether it's mitigating the challenges of cash-on-delivery or leveraging network intelligence to drive growth, our focus remains steadfast on enabling D2C success."

In an ever-changing landscape, D2C brands stand poised at the intersection of tradition and innovation, driven by a shared vision of redefining the future of retail.

Strategies for Success in the D2C Space

1. Customer-Centric Approach: Understanding and anticipating customer needs is crucial. As Jain noted, "Obsessing over consumer needs helps create a loyal customer base."

2. Sustainable Growth: Both Lal and Jain emphasized the importance of sustainable, profitable growth over aggressive scaling. "Profitability should be built into the DNA of the business," Lal advised.

3. Brand Credibility: Building partnerships with well-known licensors can significantly enhance brand credibility and trust, as demonstrated by The Souled Store.

4. Innovative Marketing: Balancing performance marketing and brand marketing is essential. While performance marketing drives immediate sales, brand marketing builds long-term customer loyalty and brand equity.

5. Omnichannel Presence: Expanding beyond online platforms to include in-store experiences can help D2C brands reach a broader audience and enhance customer engagement.

The D2C landscape in 2024 is marked by both challenges and opportunities. As competition intensifies and operational costs rise, brands must adapt by focusing on customer-centric strategies, sustainable growth, and innovative marketing. The insights from industry leaders at the IReCxD2C Summit underscore the need for a balanced approach that combines profitability with brand-building to navigate the evolving market successfully.