Narrowing down on the brand’s purpose is key to its profitability, say leaders at India D2C Summit 2023
Mumbai: The most important aspect that differentiates a brand from the rest is its purpose, according to leaders speaking at India D2C Summit 2023. While discussing the ‘High Resolution Maps to Navigate the Purpose-To-Profitability Route’, panellists unanimously agreed that a well-defined purpose reflects in a brand’s success story.
The function of purpose
Brand purpose is the “why” of a company… its reason to exist. Most enterprises usually start out as a reflection of their founder’s own experiences and observations on market gaps, untapped opportunities or a drive to revolutionise an existing business model or product category. However, a lot changes as the business expands and market realities bite. It is here that the brand’s purpose helps keep the brand on the right track.
The Pet Point by Akshay Mahendru is an apt example of a purpose-led brand that was launched primarily to address the needs of pet parents. “We wanted to launch a brand that was affordable to pet parents,” said Mahendru, who is the co-founder and director of the company.
“Have a brand with a purpose. Our purpose is to empower every woman and this is communicated in all our communication – from pre to post-purchase. Be close to the consumer and don’t lose sight,” Dr. Drishti Anand, co-founder, LetsDressUp said.
Importance of aligning all stakeholders
Next comes the important step of aligning all stakeholders with the brand’s purpose. According to Rajesh Babu, chief operating officer, Akshayakalpa, a brand should not just align its team towards the brand’s purpose but also the investors. Niranjan Kumar, business head – D2C e-commerce, Bombay Shaving Co., shared how his company was only working with investors with a long term vision. He shared, “Look at astrategic investor.”
Success secrets
Highlighting one of the key factors that directly impact a brand’s profitability, Krishna Maniyar, vice president of natural-fibres product marketplace Reshamandi spoke on the importance of managing cash flows and ensuring that the suppliers are paid on time. “Let it be transparent for everyone,” Maniyar said.
India holds Bharats within it and till a brand reaches the smallest of pockets across Bharat, it cannot be successful. This point was brought out by Durlabh Kumar Rawat, founder and chief executive officer of Barosi, a natural food brand. Rawat also brought out another important essential for a brand’s success – being focused on business fundamentals instead of focusing on being a celebrity.
According to Kumar of Bombay Shaving Co., the repeat rate is the key to a brand’s success. Bombay Shaving Co. has been strong in promoting its website, especially among its acquired customers. “Customer stickiness is the key,” shared Kumar.
The backend is the backbone of a brand hence having a robust supply and manufacturing base is critical. Speaking on this, Shivani Agarwal, co-founder and chief marketing officer, Uptownie revealed how her brand works on test to scale approach ensuring there is no dead inventory. Being available on marketplaces helped the brand in its own D2C journey, she added.
Delivery matters
When it comes to deliveries, quick and safe both are equally important for a brand’s success. The packaging of the product too plays a paramount role in adding ‘delight’ to a customer and is an important part of the brand experience. Sharing an example, Vikram Narula, founder and chief executive officer, Ajwain Watches shared how the company delighted its customers by packing watches in a tricolour purchased from Khadi Bhandar instead of using a regular cushion. He said that brands should explore adding a ‘wow’ factor in their packaging as it helps register the brand in the customer’s mind.
Strong and transparent communication
On a concluding note, communication that a brand designs and executes too has an impact on its acceptance. This could either make or break a brand. Keeping the communication transparent and truthful builds trust. It is important to ensure that consumers are not misled at any point.
