7 Fundamentals D2C Brands Must Master To Maintain A Competitive Advantage

7 Fundamentals D2C Brands Must Master To Maintain A Competitive Advantage

SUMMARY

Creating a differentiated D2C startup is a complex process that requires a lot of time, effort, and resources. It is critical to have not only a good product but also a good business model and strategy, as well as a good team

It's critical to remember that creating a D2C startup is not just about making money, it's also about creating a product or service that helps people and solves a problem in a creative and sustainable way

This article offers a step-by-step guide that D2C founders can follow to avoid certain obvious marketing mistakes that shore up their business numbers and reach their revenue goal

With Shark Tank season 2 currently occupying primetime, I couldn’t help but notice that the show highlights glaring marketing mistakes made by D2C startups, which reflect in their business numbers.

So, in this article, I’m hoping to cover the steps involved in creating a startup that could feature in Season 3 of Shark Tank, hopefully with better results than you’d ever imagined. It’s a game, and there are rules, so buckle up!

Step 0: Determine A Product Category 

Choosing a product category that aligns with your interests, skills and has a large growing market (validated through market research) is the first obvious step. Choose your niche by understanding the smaller chunks that constitute larger categories for better differentiation. Popular and growing sectors in India are food and beverages, health and wellness and home and personal care.   

For the sake of this article, let’s assume that you would pick something in the health and wellness category and that you’re targeting a year-end revenue target of INR 10 Cr.

Creating a D2C startup in the health and wellness space in India can vary widely in cost depending on a number of factors, such as the type of product you’re developing, the size of your team, and your marketing and distribution strategy. However, it is important to note that creating a startup that generates INR 100 Mn in revenue in less than 12 months is a very ambitious goal and not a common outcome for most startups. It would require a lot of planning, resources and execution to reach this goal.

Here is a general step-by-step approach that you might consider to try to reach your revenue goal:

Step 1: Research & Product Development

  • Conduct market research to understand the current trends and opportunities in the health and wellness space in India. Use resources such as industry reports, surveys, and competitor analysis to gather information.
  • Identify a problem or gap in the market that your product can solve.
  • Develop a product that meets the needs of your target market and stands out from the competition. This can involve creating a prototype and testing it with potential customers.
  • Continuously refine the product based on feedback from customers and testing.

Step 2: Sourcing and Supply Chain Management

  • Identify reliable suppliers of raw materials who can provide high-quality materials at a reasonable price.
  • Establish a system for managing inventory, logistics, and delivery of the product to customers.

Step 3: Branding

  • Develop a strong brand name, logo, and packaging that differentiates your product from competitors.
  • Create a website and social media presence to promote your brand.

Step 4: Digital Marketing

  • Develop a comprehensive digital marketing strategy that includes building an ecommerce website, social media presence, SEO, email marketing, influencer marketing and retargeting.
  • Continuously track and measure the performance of your marketing efforts and make adjustments as needed.

Step 5: Logistics and Customer Service

  • Establish a logistics and customer service infrastructure that can handle a high volume of orders. This includes setting up warehouses, logistics, and inventory management systems.
  • Hire customer service representatives to handle customer inquiries.

Step 6: Fundraising

  • Identify potential investors or funding sources to finance your operations and hire the right talent.
  • Prepare a pitch and financial plan to present to potential investors.

Step 7: Scaling

Once you have a good understanding of the market and have established a customer base, it’s time to start scaling your business. This includes increasing the number of products offered, expanding the product line, and increasing distribution channels.

It’s important to keep in mind that creating a D2C startup is a complex process that requires a lot of time, effort, and resources. Additionally, reaching 100 Mn in revenue in less than 12 months is an ambitious goal and would require an immense amount of execution and luck. 

It’s also important to remember that creating a D2C startup is not just about making money, it’s also about creating a product or service that helps people and solves a problem in a creative and sustainable way. It’s important to have a good product, but also a good business model and strategy, and most importantly, a good team.

D2C House’s Tool Of The Week: HiHello


What is it?  A digital business card that’s an extension of your online personality. Create your business or personal business cards, zoom background with a QR code and so much more. Notwithstanding the fact that digital business cards are so much better for the environment. 

Why is it so cool? Their coolest feature has to be the Self-Healing Address Book, which updates itself with your contacts’ latest information, making contact management effortless. 

See you next Saturday!

 

 

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

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