Experts offer strategies on how to scale D2C brands efficiently

The success of D2C brands hinges on customer loyalty, repeat sales, and a proficient logistics management. But success needs to be accompanied by scaling for growth. Growing a successful D2C brand in today’s fragmented, complex, and highly competitive retail landscape while remaining profitable is no easy task.

To help D2C brands operate efficiently and stand out, YourStory recently held a panel discussion at D2C Carwaan in Jaipur titled ‘Local Roots, National Wings: Scaling Smartly’. Raghunandan Sarraf, Founder and CEO, INSARAF (Saraf Furniture); Sushil Sharma, Founder and CEO, Marwari Catalysts Ventures; and Ankur Singhal, Vice President of Sales, Ecom Express; shared their views on customer retention , data-driven decision-making, and adapting to quick commerce trends. 

The panel kicked off with a discussion on the unique challenges and strategies for Tier II and Tier III startup founders. Sarraf often speaks about being a small-town founder, but Sharma believes there is a need for founders from Tier II and Tier III cities to be more confident and louder in terms of their branding.

“What we do is enable consistent service delivery across regions. Whether it is a small town in the remotest part of the country or a metro, we just pick up and deliver, We deliver to the maximum of India” said Singhal, of Ecom Express. 

Strategies for scaling 

Sarraf, who hails from a family that has been in the furniture business for about three decades, found things fairly easy in terms of the product. “The real challenge lies in logistics and creating trust in non-standardised products. The entrance of bigger players like Amazon and Flipkart gradually helped in changing consumer behaviour, and there can't be a better time to start a new venture,” he said.

Speaking about the qualities investors look for in D2C founders, Sharma stressed on the importance of energy, passion, nature of pivoting, and the ability to manage people and resources, along with the role of incubators in providing initial validation.

“As a founder, it is important to understand that you have to manage people and resources. You don't have to do it yourself,” he advised. “You also need to choose your incubator very wisely. If you are with the right incubator and mentor, you will be able to invite investors to be a part of your journey. Valuation is a secondary issue,” he said.

AI is now forging a change in ecommerce logistics by spearheading the adoption of advanced technologies. Singhal explained how automation is transforming logistics for D2C brands by processing shipments at speed and with ease while also solving for the challenges of inaccurate customer addresses.

“With our data science tool called Bulls.ai, we are able to improve delivery accuracy and reduce return-to-origin rates. This helps us reduce the distance to travel to the end customer from the pickup point, and also optimise last-mile delivery routes to ensure efficient and timely delivery,” he said.

Approach to customer retention

One of the impacts for brands that are scaling is losing customers. Sarraf says what worked for his company were reviews and feedback. “Feedback goes a long way in customer retention. And sometimes negative feedback is still better than a positive review in terms of retention,” he observed. 

Sharma highlighted the need for founders to be louder and more involved initially, and the importance of pivoting when necessary. Singhal advised on being ruthless in managing the team to ensure alignment with the end objective. “At times you start with friends. At times you start with your spouse. But when you spend your time struggling and it is hard to tell the truth, you must move them out of the organisation so that you can grow,” he said.

Sharing insights on how to avoid common pitfalls while scaling, the speakers advised going all in on scaling efforts and being prepared for potential failures. They emphasised the importance of legal agreements and choosing the right legal and financial advisors. A clear vision is also vital to become a leader in a single domain.

Advising startups on getting onboarded with logistics partners for a seamless scaling journey, Singhal focused on the use of regional warehousing, dark stores and micro-fulfilment spaces to get closer to customers. He also stressed on optimising packaging to minimise product damage during logistics. 

Sharing tips on how a consultative selling approach helps brands optimise their strategies, he said, “If we know your products, what markets and sales you are targeting, we help brands optimise for that”. He added that Ecom is introducing solutions that are targeted towards same-day or next-day delivery, thereby optimising for speed.