Why D2C brands should embrace Social Commerce for millenials


According to KPMG India, the country already has over 800 D2C brands in operation. The direct-to-consumer market is currently worth $44.6 billion, but it is expected to grow to $302 billion by FY 2030. In recent years, several direct-to-consumer (D2C) businesses, such as caffeine, Khadi Essentials, Arata, WOW Skin Science, Plum Goodness, and others, have inhabited niche markets and built strong brand relationships with customers. D2C start-ups such as MamaEarth, Sugar, and others are fiercely competing with large FMCG brands such as Himalaya, Hindustan Unilever, and a slew of other companies.

The growing role of digital information on consumers is undeniable. Customers nowadays have access to a wealth of information before making a purchase decision. Furthermore, the rise of social commerce has enormous potential to influence people’s decisions. Because India has one of the highest rates of Internet penetration in the world, with 852 million people accessing the Internet via smartphones at the lowest global data rates, developing an omnichannel presence has proven to be a successful strategy. 

Social commerce refers to the direct purchase or sale of goods or services at touchpoints where consumers have access to content. This model can help customers discover new brands by requiring them to complete the entire purchasing process within their preferred applications. Despite accounting for a minor portion of India’s e-commerce sector, social commerce is expected to reach $70 billion in GMV by 2030, when the e-commerce market is expected to reach $400 billion, according to a study performed by Sequoia India and Bain & Company.

A Successful Combination:

Direct-to-consumer businesses and social commerce provide a direct route to customers without the use of physical stores or third-party e-commerce partnerships, giving them full control over the experience that is created for them. Direct-to-consumer companies and social commerce benefit from understanding where their customers spend the majority of their online time. Wherever the content-savvy millennials and GenZ go, whether it’s Instagram or Pinterest, they both cater to the same age group, which is relevant to the growth of D2C and social commerce.

Possibility of Filtering Consumers:

Because social media provides a wealth of customer information, businesses can tailor and target their advertising solely to consumers. Social commerce enables D2C companies to put specific, ready-to-buy objects in front of the precise customers who would love them in a way that traditional e-commerce and marketing cannot.

Encourages effective Interactions:

One of the most significant benefits of social commerce is increased participation. People are encouraged to connect with businesses through social commerce through two-way communication. Customers can communicate with the company’s business as well as use social media as an efficient customer service channel where issues can be resolved. Customers who return to a business are more likely to recommend it. As D2C firms worked to establish an omnichannel presence, social commerce began to grow. Working together, they are forging a distinct combination that offers specialized and personalized products to young consumers.

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