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Doodle, first mile , fresh stock, not all colours are provided with e-commerce

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Q1
D2C model is that it offers better tracking and monitoring of supply chain, superior and customised
shopping experience and cost reduction.

Nike, OnePlus, Apple and Xiaomi are also experimenting with this concept, as these brands have
slowly started diverting their customers from retailer and ecommerce to their own online portals
and retail outlets.

Target audience

D2C brands tend to be born out of the internet, are targeted squarely at younger audiences, digital
natives, millennials and are focused on driving a more intimate customer experience.

Benefits of D2C

Long-term growth. Test-and-learn pricing, brand messaging, and other factors that are crucial for
clinching the sale. capability. And, perhaps most importantly, data ownership.

Third-party retailers often mark up the price of goods by 50 percent or more. By making the sale
directly with consumers, brands can put much of this margin back into their bottom lines.
One of the biggest risks associated with expanding your business into new regions and countries is
that you don’t know if people will buy your goods. You can hedge for success, and save time and
money by promoting your brand via social media and selling online direct to consumer, instead of
taking the more time-consuming route of building a relationship with a retailer. You can test and
develop new products as well take advantage of small-batch production runs, limited products, pre-
orders, waitlists, and customer surveys.

Why D2c

 they can observe customer behavior on their site and their user’s buying habits

Why D2c don’t work

Brand Visibility: Standing Out From The Crowd

With more and more companies venturing into the D2C segment, it won’t be long when the
market will be flooded with similar products with very less differentiation, a market condition
known as the perfect competition.

Establishment Of A Small Batch Supply Chain

Although owning the end-to-end journey of a product sounds very appealing, one needs to take into
account the cost incurred in the transportation and maintenance of the supply chain. With most of
these neo-D2C brands targeting a niche audience, the batch size of the demand will be relatively low
compared to the traditional consumer goods companies which will eventually increase the overall
operation cost of the supply chain if innovative practices suitable for small batch supply are not
incorporated.

Key facts

A recent study showed that some 59% of consumers go to the manufacturer’s websites to research
their products, while 55% prefer to buy directly from the manufacturer’s website.

Over the past few quarters, it has been able to maintain a stable market share of 51-52 per cent

The reasons mentioned in the report are: (i) launch of a host of herbal products, (ii) sharp growth in
the herbal category where CLGT has one-third market share, (iii) 30 per cent YoY expansion in direct
distribution reach, (iv) sharp increase in ad spends/ promotion and (v) revival in both the premium
and mass end segments.

CLGT had created significant capacity between FY14-17 before the onslaught of herbal players,
which delayed capacity utilisation pick-up. Thus, it doesn’t need any material capex until FY22E. Even
if volumes recover to high single-digits (with some market share recovery) from low to mid-single
digits, PAT growth will be much higher than EBITDA or topline growth.

 According to a recent IAB study, over two-thirds of consumers have come to expect direct access to
a brand, and about 67% of customers have used a company’s social media for customer support.

Colgate speciality product in india

Pain out
Colgate speciality product in usa

Optic white series and take home kits, whitening pens

Supply chain

launch your D2C brand in limited urban cities; adapt your supply chain and scale when you have
retrofitted your supply chain for “consumer scale” fulfillment. 
https://supplychainbeyond.com/the-consumer-direct-strategy-part-2-d2c-supply-chain/

Custom packaging
Your packaging can make a big impact on how customers experience your brand. At ShipBob, we
partner with a variety of custom packaging companies. With unique packaging, you can stand out and
leave a great first impression. In this age of social media, influencers who make “unboxing” videos
with your products can improve your D2C brand’s image. 
2-day shipping
Amazon dominates because of 2-day shipping and it’s a huge competitive advantage. They have the
logistics network capable of fulfilling orders quickly and delivering them within 2 days which helps
drive conversions. Most D2C businesses don’t have the ability to offer 2-day shipping, so they can
lose out against Amazon.
With ShipBob, you can offer 2-day shipping to your customers, which will help reduce cart
abandonment and improve average order value (AOV). 
Distributed warehouses
ShipBob offers a robust fulfillment network (with more locations coming!), which means you can
affordably deliver to customers across the world. With ShipBob, your orders are sent to the warehouse
closest to the customer, which results in faster shipping times and lower shipping costs. You don’t
have to be a billion-dollar corporation to have an Amazon-like reach.
No hidden fees
Most 3PLs charge hidden fees so they can make more money. At ShipBob, we don’t charge hidden
fees. Our pricing is transparent so you can forecast costs and see just how profitable working with us
is.
Real-time inventory tracking
From setting reorder points to ensure stock levels don’t drop below a certain level to viewing real-
time inventory counts across fulfillment center locations, ShipBob can take the pressure of managing
inventory off your plate. 

Sizing down
The crux of the supply chain challenge for manufacturers going D2C is that they are now in the
“small parcel”shipping business. At the DC level, SKU picking and packing have to be re-thought for
such volume of orders. 
This could mean challenges at various levels: staffing for shifts (in tandem with the daily order flow
and seasonality), separate areas within the DC for D2C fulfillment or even separate DCs for D2C.
Speeding up
While same-day delivery is a very urban phenomenon, two-day delivery is a real need. And shoppers
don’t want to pay for shipping. 

Cancellations, refunds, exchanges

1. An order placed and confirmed cannot be cancelled

2. You are entitled to a 100% replacement of order in case You received something else than
what you ordered or Your order reached you in a distorted manner. If Your order includes
multiple items, partial replacement of the required items is also possible. If purchase of the
Product is made under a special promotional offer or any special scheme, special rules shall
apply for replacement.

3. Replacement process must be initiated within 24 hours from the time of receipt of order by
the User. The Product must be in an unused state before seeking a for a replacement and
should be accompanied by a copy of the original receipt or invoice issued at the time of sale
of the Product.

4. Any request for replacement will be accepted only after inspection of the Product. Once the
replacement request is placed with the customer service, the logistics partner will arrange
for a pickup of the Product from the address provided at the time of placing the order within
3 working days. Once the Product is received, it takes about 1 working day for inspection
team to confirm on the replacement. On confirmation of the genuine need for replacement
of the Product, we shall replace the desired Product with the User in 3 working days.
 5. At every step of the replacement process, we shall keep you updated through emails and/or
SMS. However, if you have any queries before, during or after the replacement is completed,
feel free to contact Us at: itccares@itc.in

6. Refunds will not be made under any circumstances and only replacement in relevant
situations will be done

Most D2C brands use some sort of CRM software or platform to get a 360-degree view of their
customers (and leads, or potential customers) and to communicate with their consumer market on
(sometimes) a daily basis.

 Soliciting customer feedback via an email marketing campaign

 Capturing and analyzing social activity with machine learning
 Combining purchase history, search history, and social sentiment to
determine preferred products by demographic
 Encouraging consumers to participate in product development and testing
 Creating a forum that enables consumers to engage with one another
 Giving the consumer multiple options to choose from regarding the style of
 engagement they prefer

Other suggestions to help get your DTC transition off the ground:

 Decide whether you want to go full DTC or hybrid DTC

 Simplify your return system
 Balance product-based information with other forms of content
 Use social media to your advantage
 Encourage word-of-mouth advertising
 Move to a subscription-based model

Trends

 Increase in niche agencies—Expect to see more agencies that specialize in DTC entering the
“shopper marketing” space to help brands go beyond social and incorporate TV and other
traditional advertising into their campaigns.

 Growth in Connected TV—Brands will begin to take advantage of the big opportunity for
DTC brands to reach a broader audience through CTV and OTT.

 Reconsidering influencer relationships—As brands look to market outside of social media

channels, the budget for influencers could diminish over time.


Recommendations of products by influencers

Bundling slower-moving items with more popular ones is also a great way to boost sales for both

Scratch cards, gift cards for Palmolive

Unboxing Videos

Free subscription for first month then 200 per quarter Subscriptions based models monthly: for
more discounts on more purchase (ITC). On reviewing Dollar Shave Club’s retention number, we can
see that after 12 months, approximately 50 percent of customers still use the service. And after 2
years, they had retained 25 percent of all signups.

Shopping baskets for discounts minimum 500rs.

Ways of using product through videos. Value added services and experiential services

Availability notification afterwards if product is not available at that time.

This can be accomplished through occasional gifts and exclusive access to certain products or deals.

In a recent survey, 61% of consumers said that the most important way a brand can interact with
them is to surprise them with a reward for their loyalty.

Rewards can come in the form of savings, freebies, event tickets and other gifts that non-members
aren’t receiving, similar to how Sephora offers birthday gifts, seasonal discounts and points-based
rewards exclusively to customers enrolled in its Beauty Insider program. 

Consumers who are not already members (or even a customer of your brand) may be enticed to join
your loyalty program after seeing social media posts featuring its perks and its happy customers. 

Ipsy, a subscription box beauty retailer, leverages Instagram to promote discounted add-on items for
members of its monthly service. 

Make sure each of the products on your site has a gallery of at least four or more images.

Chat bots for redressal, suggestion complaints etc.

Instagram and Facebook allow businesses to sell directly from their platform. To properly market
your business and drive direct to consumer sales, make sure you’re producing content that feels
native to the social site.

Advertisement through ott platforms, Chingari, MX takatak, Roposo

Pick any 5 variants of toothpaste and we will send you one-time use along with your order.

Coming up with old packaging of colgate ribbon dental cream

How to pacify retailer

This may involve selling only specific items D2C, or delivering wholesale shipments of high-
performing products to specific retailers; or, it might involve having your partner retailers take a
more active role in promoting your products.

Gauge Your Success

Once you’ve made the transition, you’ll need to find a way to determine whether your direct-to-
consumer retail strategy is successful. Define key performance indicators such as average order
value, shopping cart abandonment rate, customer acquisition cost, customer lifetime value, and so
on. You’ll also need to define key operational metrics, including customer service metrics
(turnaround time for customer inquiries, call abandonment rate, etc.) and fulfillment metrics (initial
order fill rate, orders shipped same day, return processing, etc.).

Colgate Manufacturers in india himachal, Gujarat, Maharashtra, haryana.

LG

LG select cities Delhi, Mumbai, Hyderabad, Ghaziabad, Gurgaon, Noida, Kolkata and
Bengaluru.
LG would use its network of existing local warehouses from where it would be delivering
consumer orders using third-party partner delivery network.

only 150 SKUs would be available, which is around one-third of its overall product portfolio. “We are
trying to learn and engage the customers and then we would like to scale it up to other cities as well
$15.1 billion net sales
Financials
Building website

 Vendor type (costs range if you decide to work with a freelance, in-house, or remote
software development team)
  Vendor rates (vary based on the vendor’s location, experience, portfolio, etc.)

 Complexity of website design

 Number and complexity of website functionalities

 Number and integration of 3rd party services

 Timeline and business objectives (urgent projects cost more)

 eCommerce website hosting cost, SSL certificate price

 Marketing and SEO expenditures (depends on your promotional strategy)

 http://www.slippost.com/article/how-much-does-a-website-cost-in-India/

Domain Name- INR 900-1200/year.

Hosting- INR 150,000 to 400,000/- Annual

SSL Certificate-

Third Party Integrations-

UI/UX Designs- 10,000 to 60,000/-

Visual Designs

Development

Quality Analysis

Content And Copy-writing