MMA Global India and Publicis Commerce India unveil D2C Advantage X Toolkit

MMA Global India and Publicis Commerce recently launched their report ‘D2C Advantage – Guide to Maximise ROI Of E-Commerce Investments’ with leaders from various corporations in attendance, in addition to the Publicis Commerce and MMA Global India leadership team.

This toolkit is the first of its kind with rich reference material for the C-suite and Brand Leaders on making D2C ventures a success by investing in sound strategies and having a clear value proposition, taking into consideration and capabilities required for profitability. 

The two companies launched the toolkit in Mumbai on March 5, amidst a full house. The event kicked off with a welcome address by Moneka Khurana, Country Head and Board Member, of MMA Global India, followed by a keynote address by Anupriya Acharya, CEO of Publicis Groupe, South Asia who was joined by Lalatendu Das, CEO, of Performics India, which is part of Publicis Commerce India. The toolkit launch followed shortly after.

The toolkit consisted of a joint survey conducted which reveals that >80% of D2C ventures are yet to achieve profitability, citing high customer acquisition costs, operational complexities, and unclear returns on investment as primary obstacles. The top three key challenges in scaling D2C businesses in India are namely high customer acquisition cost (70% of respondents), operational complexities (20% of respondents) and unclear ROI (10% of respondents.) Moreover, while many traditional businesses have ventured into D2C, standalone D2C revenue remains modest, comprising less than 5% of overall e-commerce revenue for 50% of respondents. 

However, businesses that have seen success with D2C have done it primarily through clarity of proposition, developing consumer insights through data enrichment and utilisation and analytics and reporting, augmenting the consumer share of mind through unique and compelling shopping experiences, the right media and engagement and innovating on product UI/UX. While the path to profitability of D2C business is quite challenging when viewed independently, the true value of D2C investment is unlocked when insights from D2C businesses are connected to the overall e-commerce business. In a conservative estimate, when done right, D2C businesses have the potential to deliver 8%+ operating margin consistently. 

D2C channels provide the best way to capture first-party consumer data as seen in the survey findings. When done right, first-party data has the potential to deliver ~4%+ lift in overall D2C revenue. Therefore, D2C brands must have a structured roadmap to collect, manage and use first-party data in scaling their D2C business.

Anupriya Acharya, South Asia CEO, of Publicis Groupe said, “D2C enables real, direct, and very personal connections with consumers, driving brand loyalty and long-term relationships. The overall ecommerce landscape is evolving at rapid speed and within that, D2C channels are a goldmine opportunity for companies to better manage the way they sell to consumers, comprehend consumer interests and preferences through valuable data and insights, bring in strong differentiators and innovation and personalised commerce experiences. Our toolkit D2C Advantage X – Guide to Maximise ROI Of E-Commerce comes at an apt time when D2C is at an inflection point in India and more companies are looking for direction and differentiated strategies when it comes to leveraging their D2C commerce channels. The insights in our survey will help more companies make the most of the D2C opportunity, building market share and enduring relationships with consumers.”

Moneka Khurana, Country Head & Board Member, of MMA Global India said “MMA Global India through its e-Commerce Council aims to build an overall understanding of the eCommerce play in which D2C is integral to omnichannel strategy. Building a strong D2C platform feeds into enabling insights/learnings for decision-making for the larger eCommerce market. We hope this playbook will redefine the significance of D2C in the eCommerce landscape more than ever before. As we prepare for a cookie-less journey this year, investing in D2C is the most potent way to build first-party data for effective marketing. D2C is here for the long haul and will propel hyper-growth, brand building, and opportunities to drive content-driven commerce.”

Lalatendu Das, CEO, of Performics India & part of Publicis Commerce India said, “A significant part of the e-commerce funding in India goes to D2C businesses, overtaking marketplaces as the most funded ecommerce subsector in 2023. In fact, even brick-and-mortar businesses are now launching D2C channels as part of their omni-channel strategy. However, D2C is an area which is still underleveraged because >80% of D2C ventures as per our survey are yet to achieve profitability. Our toolkit D2C Advantage X – Guide to Maximise ROI Of E-Commerce Investments has the best of knowledge and actionable strategies on D2C. It gives a clear understanding of why some companies can implement successful D2C businesses while others are on a slower trajectory. D2C, which is a faster way to go to the market needs to be part of a company’s longer-term play, strategy, and vision and to be successful, companies must implement the sort of thinking, investment, and agility in execution that is required for an omnichannel world.”

You can read the full report below.