D2C’s Dilemma- My way of Interpretation.

Communication is very dynamic nowadays; many new things are evolving differently. Technology is
making it dynamic and playing an important role in our day-to-day life. The pieces of information which
once were secret and were handy with few people in the market, now it is one finger click on our
mobile. Helping businesses to think beyond the peripheral and time. The same way consumers are
getting market updates every second and AI on social media is capturing every move of their thoughts
and trying to get the inside of our minds. Especially when we are searching grocery, home appliances,
electronics or any other products on a website, means we are exposing our interest to the world.   They
are forcing us to think about their products and trying to change or judge our preferences, interests, and
even hobbies.  Changes in e-commerce take place when customers’ preferences change. Exactly
technology companies through a social platform, Application or information through other means trying
to change our preference and interest.

Let's validate this thought of change in consumer preference. 

Let’s move to the year 2000  and try to memorize the market scenario especially in Retail. you will find
products that are approached to consumers that such a brand is best for health etc and promotions
were done through Newspaper, Radio, and Television. Few standalone supermarkets were there in
metro cities which were showcasing the merchandise in the best way. In the modern world, retail was
evolved 3 decades ago so consumers are aware of brand and branding. 

Indian retail is vast in terms of size and rise so opportunities are there in a very ample way.   $500 billion
grocery retail size is huge for an unorganised sector here in India. Covid brought new synergies and
opened a new line of business for companies or start-ups who are willing to use this ecosystem for more
fields to plough.  Yes, change is unavoidable but persistent so things move on for new dynamics and new
heights to touch. A consumer must have felt the touch during the covid wave, how e-commerce
companies facilitated them and fulfilled their daily needs unorganized. Also, numerous new products
have been seen and tasted.  I am very close to this ecosystem of retail so I can feel that things are going
in the right and disruptive way. Startups and organizations started introducing FMCG products across
categories and getting huge investments. 

Terminologies have been changed significantly, dramatically, Consumer and logically but products
remain the same but the way new products are introduced in the market is changed. What are those
terminologies?  Let's figure it out and explain how it is forcing us to think and adapt.

Consumer’s preference is changing towards hygiene, sanitation, convenience, quality, and health and
welcoming brands entering these segments. Well, now directly come to the article about D2C ( Direct to
consumer).  This is new terminology for brands reaching directly to consumers via e-commerce platform
or direct distribution like direct marketing but still, we can find lots of change in way of working and
making its market fit.  Old terminologies are used by the company to consumers i.e. C2C, Private label
for standalone supermarkets, and consumer brands in the fast-moving segment.  Let’s jump to the
names which got fame and name during the last two or three years, most brands got earmarks only
after 2015. 

Below is the list of a few known startups in D2C brands,  let’s figure out how many are available near
your Kirana stores.  Stand-alone stores of a few D2C startups are now there in tier I & Tier-II cities like
Lenskart, firstcry are very visible and consumers footfall is there in these physical stores. They are asset-
heavy startups, yes but still brands like mama earth and beardo are very much on the b2c commerce
platform and doing great.

Startin
Startups g Segment Life Cycle as on date
Lenskart 2010 Eyewear 11
Firstcry 2010 Baby Care 11
Healthkart 2011 Fitness Products 10
Pepperfry 2012 Home Furnishing 9
Bewakoof 2012 Clothing 9
Organic Beauty
Plum
2014 Products 7
Noise 2014 Electronic Lifestyle 7
MyGlamm 2015 Beauty Products 6
Sugar Cosmetics 2015 Beauty Products 6
Licious 2015 Non-Veg Segment 6
Country Delight 2015 Dairy 6
Melorra 2015 Jewellery 6
Candes 2015 Home Appliances 6
Bombay Shaving
Company 2016 Men's Grooming 5
Mamaearth 2016 Personal Care 5
The Moms Co. 2016 Healthcare 5
Wakefit 2016 Home Furnishing 5
Wow Skin Science 2016 Skin Care 5
BoAt 2016 Electronic Lifestyle 5
Sleepy Owl 2016 Beverages ( Coffee) 5
Flatheads 2018 Footwear 3
Indus valley 2016 Kitchenwear 5
Mcaffeine 2015 Personal Care 6
Vahdam 2015 Beverages ( Tea ) 6
Nyumi 2019  Nutraceutical 2
Onlife 2019 Healthcare 2
Mensa 2021 Fashion & Apparel Unicorn
Monrow 2016 Footwear 5
True Elements 2014 Plant Based Food 7
 Juicy Chemistry 2014 Skin Care 7
Oziva 2016 Plant Based Food 5

Do we think that these all are newly invented concepts or ideas or they were not in existence before or
have we never seen such products at physical stores?  They were there but we hardly know the name
not because we are not using them but we are treating those brands just as a product or commodity.  
We know them by the name Private Label, mark, brand.  Status etc. but now it is the era of start-ups
with new ideas and with speed to grow in a short period.
 
Human psychology is unpredictable and hard to understand. You must have heard a famous sentence
mostly used by a politician “ that, the memory of general people is very weak so remind them at the
very start of election otherwise they will forget the gold you have given them during your term”.  This
same saying seems to fit with the end consumer, but not every time.  The brand is a brand that is
inherent sometimes in our memories. Things are changing very fast which further pressurizes individuals
to think about the communication which is done by the brands, by the advertisers, by the social media
platform, and by word of mouth. The continuous hammering of events is activating the subconscious
mind to be addicted to those things which we should not try but buy.
 
So far D2C brands that are selling their products through eB2B are in good shape but if they want to
grow what will be their strategy. Till they are asset-light, must have positive EBITDA but tomorrow when
they think to expand in other territories?  Will e-commerce help them to reach there?  Or they will come
with an asset-heavy model of physical stores. 
 
Questions are in Queue? 
 
Let's surf with me with a few questions and will find the answer near to your thoughts.
         Startups have plenty of commitments owed to their investors & other stakeholders which
they need to fulfil within five years i.e. short time frame,  do or die situation.
         Scale to the tune of the top line is a must – big accelerator of valuation
         Burning money is unavoidable
         Every time present in the market to raise money
         Market expansion is a must  -  a milestone to achieve for greater valuation: But where to
expand?
 
 So far the presence of D2C brands are on the eB2C platform, I am okay with their performance and
agree that they are purely D2C and directly reaching consumers without many market intermediaries or
existing distribution channels.
 
But, further, if I think that they will expand the business to other verticals or want to join the traditional
distribution then what will happen?  Again differentiation between GT and MT will happen, the same
way we need to change the margin structure. Finally, they will come to Retailers. This would be done for
sure because without the help or mediation of retailers they will not reach to masses.   I must say,
welcome to the Retail network of Kirana Retailers. 
 
Problems start from now which they will feel starting from onboarding Super Stockist, C&F,   distributors,
Sales & Marketing staff, and backend staff heavily. City-wise and state-wise distribution networks need
to be developed, stock will move from hand to hand adding cost at every stage.  Challenges will come
when the brand will start communication with consumers i.e. demand creation.  Without proper
distribution and availability at every Kirana store, things of ATL/BTL marketing will not work, this will be
a failure and the brand will be out of sight, out of mind immediately.  Dealing with a traditional mindset
is not an easy task.  Kirana Retailer and distributors both are business people, they have their own way
of working and dealings. The mere use of technology will not change their way of working. They are
masters, running businesses at low operating costs.  “penny wise pound foolish” will change the mind of
the brand owner. So, beware of this mindset.
 
This is a long story of the brand’s journey through a traditional system.  We can make this journey short
& sweet. 
 
“ Placement of new products on the  Grocery Retail shelf is a mammoth task & hard to deal with a
traditional mindset, Journey of the brand can go long” ……… by Bhardari
 
No Worry,  here in Jaipur, we are making things easy by way of our unique Kirana retailer’s network. This
is a confluence of traditional and innovative distribution systems, techniques, and best use of
technology.  A network of uniform retail stores across Jaipur city will help new D2C brands to place their
products and trigger a call for action for customer footfall at these stores.  On a single click, the entire
retail network is available for distribution and will be available for centralized marketing activities. The
brand will have large coverage and penetration.  In a shorter period of exploration, we will make the
product /brand market fit in the territory.   The power of empowering the existing ecosystem is more
energetic, economic, scalable & profitable than creating a new competition so we believe in
empowering them and connecting them with our technology stack. I believe in connecting and
empowering rather than disrupting.  Disruption is a kind of disturbance in the ecosystem which can not
be fruitful for the system and finally the economy. 
 
Come to us to become part of our journey and introduce your D2C brands to retailers through our
platform. We are an offline- platform driven by technology.
 
D2C is not a dream but again it will take time to come to reality i.e. on the retailer’s platform. We are
there to make it market fit.

The writer is Co-founder & Director in B2B Grocery Startup www.kiranaking.com

Balwant Singh Rana

Written on 18.11.2021
Jaipur, Rajasthan
India,
I am Balwant Singh Rana (B.com, MBA Finance) Agri Commodities & Grocery Retail professional
working closely in the ecosystem. Currently working as Co-founder and director with Kirana King. My 20+
year's experience in Agri and retail now helping me to shape up an innovative concept for great work in
Kirana Retail. I am creating a uniform retail network for Kirana Retailers which will give them many
benefits and also help them to increase consumer football. The purpose is to create a mini Dmart in the
form of an organized store in 200 cities of India in time to come.

My philosophy is to empower existing retailers and distributors and create something big where they can
complete with new challenges and sustain their business interests for a longer period.

Having more than 10 years of experience in Dealing with Agro Commodities and making them market fit
in private label brands. Product Development to Market fit needs specialized capabilities so there as an
entrepreneur mindset, I am there to drive the business independently.

An Author & Blogger willing to write on market Goodreads and believe in creating a large network of
professional people so that with the same mindset and energy we can create something big, great and
meaningful for the business ecosystem and finally for the society.

Believe in Startup, Ideas, execution, development, and creating valuation. I believe that if we drive
valuation we will create value and finally, our values will give us immortality.

#GroceryRetail, #agricommodities #Rice #sugar #Pulses #privatelabel #productdevelopment #marketfit

#funding #startups #consultant #author #blogger

Kind regards/
Balwant Singh Rana