Versatile Brand Intelligence is brand, product attributes, pricing, stock levels, reviews, and other product data curated from competitor websites or eCommerce channel partners’ websites and organized in a way to power data-driven decisions around brand presence, compliance, pricing, and markdowns.
This data can be effectively utilized by the Supply Chain, Marketing, and Pricing divisions of the company for critical business decisions.
Digitally native brands popularly known as D2C or DTC (Direct-to-Consumer) are an innovative & rebellious brainchild of the digital economy. A DTC manufacturer sells directly to end consumers bypassing intermediaries such as wholesalers and retailers. Armed with data and insights gleaned from direct customer interactions, DTC brands have created unique value propositions which "make it personal" for the shopper.
The lifecycle of most D2C/DTC Brands starts with their entry into mature markets dominated by corporate behemoths. DTC brands offer unique value propositions the incumbent was unable to deliver.
With access to first-hand customer data, DTC brands leverage consumption insights, work on a feedback-led model and rapidly develop product lines to address evolving customer needs.
Logistics and fulfilment providers like Flowspace - and FenixCommerce in the US and Unicommerce - in India add immense value to D2C brands by offering not only seamless last-mile delivery and inventory monitoring and optimizing fulfillment.
Traditional brands have limitations in almost every step of their value chain - including research, design, development, testing, manufacturing, and reaching out to customers. While they have the financial muscle, the sheer size of the operation makes it difficult to turn around solutions faster. Retailers of all formats have been gaining prominence and power because they have done the due diligence to understand the shopper, create shopper interest and enable the buying decision. Retailers possess an enormous repository of shopper data. Brands are dependent on the retailer for this data. With stringent data privacy laws, collating third-party information is becoming even more difficult.
Digitally native brands, on the other hand, do not have these limitations. They have built strong brands, connecting directly with shoppers and cementing customer loyalty. They understand very well what attracts and influences the buying decision. They are not at the mercy of the retailer to give them shelf space or provide valuable customer insights.
D2C/DTC brands target their customers with personalized messages and recommendations that are typically unavailable or harder to come by in a traditional retail model. Their data gives the D2C/DTC brand higher control over brand messaging, reputation, marketing, and sales strategy.
A few emerging D2C/DTC brands are:
Most D2C/DTC brands start their journey with online channels owned by them. The high level of personalization offered by D2C brands made it the primary choice for their target audience. Millennials and Gen Z. However, the number of competitors and channels vying for this target segment's attention is significantly higher. With the added pressure of the economic downturn, it becomes imperative to constantly monitor data to stay ahead of the competition.
As stated in a recent McKinsey report, the magic of D2C is their ability to quickly shift direction and fine-tune assortment, product variety, pricing, shipping, deals, product combinations, and marketing messages to retain and grow their customer base.
In addition to selling via their own channels, including websites and social media channels, the pull of eCommerce giants like Amazon cannot be ignored by DTC brands. More than 60% of product searches in the US originate with Amazon. While DTC brands may adopt a strategy that includes eCommerce retailers in addition to their own channels, they need the support of a Dynamic Pricing Engine which provides them with information related to prices, product reviews, stock levels, and competitor product attributes.
The right price at the right moment results in sales. However, there are many impediments to arriving at the right price. eCommerce retailers can vary prices several times a day, which makes competitor monitoring difficult.
There is a tangible euphoria surrounding the first post-pandemic holiday season. While Millennials and Gen Z are most excited to splurge during the season, consumers are making a conscious decision to shop earlier due to supply chain issues that occurred in the previous year. They are also greatly concerned about rising prices.
A study conducted by McKinsey and Company states clearly that over 43% of consumers will switch their retailers or channels to buy based solely on lower prices.
It is the online price that drives store traffic.
Post-pandemic changes to consumer shopping behavior
Stickiness or loyalty is a thing of the past as consumers struggle with inflation and increased cost of living in the current economy. D2C brands must continuously differentiate on product and service quality, ease of checkout, and excellent delivery service. For brands already outperforming in these categories, price becomes the deciding factor.
The increasing volatility and variety of eCommerce
With the penetration of mobile technology, price comparison is not restricted to the beginning of the sales cycle. Shoppers can use mobiles at any time during the sales cycle. While D2C/DTC brands may have an edge over traditional ones in customer service, increasing volatility in price and a variety of available options limit the time to make strategic decisions.
Real-time pricing (and repricing) is critical to eCommerce success and D2C/DTC brands can gain immensely from niche Pricing Intelligence platforms like Rapidious that give systematic and automated information pertaining to competitor pricing, leading to improved GMV of 6 to 8%.
Currency fluctuations can either make or break a brand
Inflation and fluctuations in currency have made life difficult for many D2C/DTC, especially those that went public in the last 12months. Brands selling in markets with different currencies need to be cognizant of the risk that current volatility poses to sales and profits.
Currency movements have experienced severe fluctuations over the last 12 months. A 10-percent currency translates into a direct revenue impact of 10 percent. If procurement and sales deal with different currencies, exchange fluctuations need to be monitored to adjust prices regularly.
Versatile Brand Intelligence builds the foundations to understand the channels, competition, pricing, and promotions to glean insights for further analysis and exploration. These are:
A clearly defined use case is the most important step to begin the exercise. Here are some suggestions on how to proceed:
In data sciences terms when multiple data sources are blended, the value of the resultant insights is exponentially higher. Combining brand intelligence with sales data, and fulfillment data can deliver valuable insights. Consider some examples:
A market-driven dynamic price engine that supports you with Versatile Brand Intelligence enables D2C/DTC brands to foresee changes, anticipate price wars, predict product design changes, and be proactive in taking business decisions. Overall, such brands experience higher conversions, GMV, and profits.
The D2C/DTC brands can rest easy knowing that their pricing and assortment actions are based on timely and comprehensive data.