India’s thriving D2C landscape has garnered significant interest from investors, entrepreneurs, and corporations alike. However, according to Prashanth Aluru, the cofounder & CEO of TMRW – House of Brands, the term D2C is more closely associated with digital-first brands.
Elaborating his viewpoint during the fourth edition of Inc42’s virtual D2C Summit 2023, he said that to tap into the broader ecommerce opportunity in India, D2C brands must focus on being digital-first.
“As a D2C brand, you could be selling on marketplaces, your websites, or eventually adopting an omnichannel approach. However, fundamentally, you are a new-age brand catering to a new-age consumer,” Aluru said.
The Aditya Birla Group ventured into the realm of house of brands with TMRW in June 2022, with plans to build a portfolio of fashion and lifestyle brands by acquiring and incubating over 30 brands in the next three years. Their current portfolio includes names such as Berrylush, Bewakoof, Juneberry, Natilene, Nauti Nati, Nobero, Urbano, and Veirdo.
At a time when many D2C brands are enthusiastic about expanding offline and some are questioning the online demand, Aluru believes in ‘being digital first’.
He acknowledged that ecosystems experience cycles of challenges and opportunities. While growth may appear slower compared to the Covid-19 era, the macro opportunity lies in building a new-age brand that starts as digital-first and gradually expands its presence offline and into omnichannel.
He stated, “There is still immense potential in the digital realm, so there’s no need to rush into the offline space, especially considering the complexities of scaling up offline operations from 10 to under 300 stores, which is an entirely different challenge.”
Furthermore, as a digital-first brand, the approach to offline expansion should differ from traditional brands like Louis Philippe or Allen.
Aluru further stressed the importance of integration between the two channels, where one channel complements the other.
Understanding the consumer and ensuring a seamless experience across channels is essential. A digitally native consumer expects innovation in physical stores, such as having a complete catalogue available or offering an infinite aisle experience.
For D2C offline brands expanding into marketplaces, focussing on the products consumers prefer offline is key.
“For instance, if you identify a best-seller in D2C, how can you bring it to the offline space or on platforms like Myntra or Amazon more efficiently? This is where we see the channel’s capability,” Aluru explained.
He reiterated that a brand can leverage multiple channels, but they all must be unified and seamless.
Aluru concluded the session by highlighting lessons learned from global and Indian examples, such as Lenskart, CaratLane, and Firstcry, which began as digital-first brands and have successfully demonstrated what an omnichannel presence should look like in the digital age.
The post TMRW’s CEO On Why D2C Brands Should Start Digital And Think Omnichannel Later appeared first on Inc42 Media.