One Year of Pandemic Life
Platforms have made the difference for D2C Brands
Covid19 pandemic created tremendous head winds for all- governments, companies , society and individuals. Most of us faced great odds to even survive the difficult days but pulled through with mutual support and encouragement. Some businesses saw the opportunity , changed directions and were lifted because of the tailwinds.
This newsletter is about Connecting the Dots between seemingly unrelated themes and making sense of it. My apologies if the analysis sounds too simplistic or straightforward. Feel free to share your views in the comment section at the end of newsletter OR simply hit reply to this email. I read all the comments and try to respond to them ASAP.
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If you would like to read a summary of the 45 posts in 2020, please do read this newsletter.
DTW
During the Week, — on March 11, to be exact — was the one year anniversary of the World Health Organization officially declaring that the spread of the coronavirus was a pandemic. We saw advent of Lockdowns and social distancing became way of life and any enterprise which depended on individuals assembling and moving around were hit hard with an uncertain future.
Another news came from my favourite business commentator and NYU Stern Marketing Professor Scott Galloway who announced a 30 million dollars fund raise for his online school Section4 that up skills managers in emerging management challenges. I think it is a great initiative because I have benefitted from four of his sprints on Strategy, Brand, Product and Platforms. The curriculum is updated, delivery is immaculate and cohort is extraordinary.
I am amazed at ProfG’s success because he has been able to offer “50% to 70% of the value of an elite MBA elective at 10% of the cost and 1% of the friction”. And he has done it for 10,000 alums from dozens of countries and representing Fortune 500 companies. Of course, while the headwinds of Covid19 including lockdowns and shutdowns simply destroyed the university business model , the tailwinds of faster internet speeds, strong personal brand and Lego-like development tools (Web interfaces, Computing and storage) helped many other Cohort-Based Course (CBC) scale much faster. We are finally in the Direct-to-Consumer (D2C) brand meta-verse.
D2C brands help the creators solve three problems- Getting the Product Right, Ability to Make Money and Owning Customer Relationship. The new ecosystem has been made possible because of the advancements within technology and manufacturing while simultaneously matching customers’ expectations of maximum quality and efficiency at lower prices. I have written about the sometimes-hot-sometimes-cold relationship between brand and platforms.
For example, D2C brand ClearDekho run by IBS Hyderabad alumni Shivi Singh has made formidable progress and it now available in stores in 15 states . With a vision to service masses with budget eyeglasses, they have poured their heart and soul to make their brainchild, a well-established and full-fledged leading budget eyewear brand. In fact, according to a report by Unicommerce , online brands are seeing interesting growth patterns through their own channels thus creating a more direct relationship with their customers.
This development is definitely good news for customers as well as retailers and it is a win-win for both of them. D2C brands gives an opportunity to the consumers to interact and buy directly from the brands they love while simultaneously giving brands more control over their sales and revenues, improves shipping experience , and gives them more insights into customer preferences to strategise proactively. In short, great customer experience, simple product design, ubiquity and virality can help business develop an extraordinary D2C product.
Let me also take this opportunity to crowd-source some ideas for a new marketing elective on Managing Direct-to-Consumer Brands. So, here is how you could help- If you manage or work with D2C brand OR know someone who qualifies, please connect them with me OR simply forward this newsletter to them.
Hope to hear from you soon.
OTW
Over the Weekend, I was part of a birding event organised by the good folks at Deccan Birders (Formerly Birdwatchers Society of Andhra Pradesh (BSAP)) at the Nehru Zoological Park, Hyderabad. I am a complete novice in birding but always find it an enriching experience. It is an activity for a slow deliberate pace of life. You can not wish for anything. Things happen and you must be aware and available to be part of it. For instance, towards the end of the walk, Abhishek and I spotted a Bee-Eater perched on top of bamboo shoot. Abhishek took a photograph and on zooming into the picture was pleasantly surprised to see a Chestnut Headed Bee-Eater. Now for novice like me, it was great news but Abhishek was even more pleased and shared the news with senior members of the society. It is then that I realised what uncommonly common is. It seems that it was the first sighting of this bird in the Zoo area and had Abhishek ignored it as a just another Bee-eater, we would have missed this wonderful sighting. Some of the most precious things are very near to us but in our race to hurry/hurtle forward, we ignore/skim the surface and are definitely poorer. It was also my first my birding walk after the pandemic and being in open nature in quiet before the Sunday crowd rush was a blessing to be cherished.
Wear Mask. Wash Your Hands. Keep Social Distance. Get Vaccinated if you are Eligible.
I Love You
Shailendra
D2C must go through a "platform" conduit - which would get their 20-25%. As in various "speciality" apps thru Amazon, Google or other platforms. So, the "middle-man" always exists ...
Sir, your newsletter is always full of knowledge and content. D2C is now an emerging and profitable platform. Companies like Lenskart, Mamaearth and SUGAR cosmetics using this platform and generating good revenue. Now Google providing certifications in the Indian market to enhance the youth skill set, so this one is also an example of D2C. This platform gives the liberty to create more content, more engagement and more control.