Technological advancements have opened up new frontiers in business for D2C brands. While there is not a single industry that has not been transformed by new-age technologies in the last two decades, e-commerce has been one of the biggest beneficiaries. The rapid adoption of advancements in technologies has enabled e-commerce players to deliver value to consumers at a scale that was unimaginable until a few years back. Since the pandemic, the push for the adoption of new technologies has further intensified, resulting in a win-win situation for both consumers and D2C brands.
The true impact of advancements in technology goes beyond connecting buyers and sellers. They are creating revolutionary changes in the creation, delivery and consumption of products. Data-driven insights have enabled e-commerce platforms to deliver goods and services with much more precision, catering efficiently to consumers’ ever-changing demands. Take, for example, the evolution of quick e-commerce. Urban consumers today are pressed for time. While they can make orders by clicking a few buttons on their mobile phones, they also desire instant deliveries. Technology has made it possible for e-commerce platforms in India to make deliveries as fast as 10 minutes.
Industry data makes it evident that technology is fueling the rapid expansion of D2C brands and e-commerce. As per a recent report, D2C brands in India are estimated to become an industry worth 60 billion by FY27, growing at a CAGR of about 40%. Globally, e-commerce will account for nearly 25% of total retail sales by 2026. That said, let’s look into the many ways in which technology is powering the growth of D2C brands:
Seamless pre and post-purchase experiences
Growth-oriented D2C brands are no longer just delivering goods and services. Rather, they are into delivering experiences. New technologies such as Artificial Intelligence, Machine Learning and Big Data are enabling D2C brands to provide personalized experiences to every customer. By analyzing real-time customer data, D2C brands can provide seamless pre and post-purchase experiences by streamlining processes at each sales funnel stage.
Stand out in a fiercely competitive market
In the fiercely competitive market, a perfect blend of technology and business principles has become the recipe for tremendous growth. Data-driven decision-making has become an enabling factor for innovative D2C brands to stand out among the competition. With the use of predictive and prescriptive analytics backed by AI/ML, they can better comprehend the customers’ purchase behaviours, trends and future activity.
Cost-effective customer acquisition
Technology is enabling innovative D2C brands to build direct relationships with customers. As more and more D2C brands are preferring their web stores to interact with end consumers, they can bypass third-party retailers or wholesalers. This helps in increasing Gross Margins and saving distribution charges. At the same time, it also enables D2C brands to pass on the saved costs to consumers. D2C brands are also getting support from marketing technology companies that capture and analyze customers’ data to provide valuable real-time insights.
Reduced supply chain bottlenecks
With the support of data-driven latest technology tools and platforms, many of the supply chain bottlenecks are getting automated, resulting in speedy shipping and cost-saving. For instance, OMS/WMS tools enable D2C brands to keep customers in the loop throughout the shipping process. It is now possible to centrally process all orders and maintain an itemized inventory with tracking to the last detail. The growing adoption of robots in the supply chain is further expected to reduce redundant tasks and human errors.
Bridging the gap between physical, digital and social
Technology is enabling D2C brands to create omnichannel fulfillment alternatives to in-store shopping. For example, many e-commerce platforms in India are now providing home delivery from local stores. D2C brands are also leveraging the power of social media to reach out to customers, enabling them to make instant in-platform orders. Going forward, the adoption of voice-based e-commerce, AR/VR and metaverse technologies are further expected to open new avenues of growth for D2C brands.
Conclusion
The digital revolution in D2C e-commerce is making buying simpler and more convenient. With more independence for brands and manufacturers, technology is empowering D2C by simplifying purchase experiences, bridging social gaps, and enhancing cost-effectiveness. D2C businesses are set to rise gracefully and the technology revolution is a major catalyst.
(The author is Dr. Somdutta Singh, Founder & CEO of Assiduus Global, and the views expressed in this article are her own)
