AD Agencies
MMA Global India & Publicis Commerce launched ‘D2C Advantage X Toolkit – Guide to Maximise ROI of eCommerce Investments’ report
Mumbai: MMA Global India and Publicis Commerce has launched their insightful report ‘D2C Advantage – Guide to Maximise ROI Of E-Commerce Investments’ with top 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 considerations and capabilities required for profitability.
MMA Global India & Publicis Commerce launched the toolkit in Mumbai on 5 March amidst a full house. The event kicked off with a welcome address by MMA Global India country head & board member Moneka Khurana followed by a keynote address by Publicis Groupe South Asia CEO Anupriya Acharya who was joined by Performics India CEO Lalatendu Das which is part of Publicis Commerce India. The toolkit launch followed shortly after.
The toolkit consisted of a joint survey conducted by Publicis Groupe India and MMA Global India which reveals that >80 per cent 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 per cent respondents), operational complexities (20 per cent of respondents) and unclear ROI (10 per cent of respondents.) Moreover, while many traditional businesses have ventured into D2C, standalone D2C revenue remains modest, comprising less than five per cent of overall ecommerce revenue for 50 per cent 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 potential to deliver eight per cent + 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 potential to deliver four per cent + 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.
Acharya 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 the 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 their 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.”
Khurana 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 eCommerce landscape more than ever before. As we prepare for a cookie-less journey this year, investing into 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.”
Das 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 the 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 on 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, agility in execution that is required for an omni-channel world.”
D2C Advantage X Toolkit: Guide to Maximize ROI of D2C ECommerce Investments
AD Agencies
Prakash Nair reportedly quits Ogilvy after 23 years
One of the agency’s longest-serving leaders has moved on, with his next destination still unknown
MUMBAI: After more than two decades at one address, Prakash Nair has left the building. The president and head of office, north at Ogilvy has moved on from the agency, according to highly placed industry sources. His next move remains unknown. Ogilvy did not respond to requests for comment.
Nair spent over 23 years at the agency, making him one of its longest-serving senior figures. He was elevated to lead the Gurugram office in April 2022, a role that put him at the helm of Ogilvy’s northern operations at a time of considerable churn across the advertising industry.
Before taking charge in the capital, Nair served as associate president at Ogilvy Mumbai, where he worked on some of the agency’s most prized accounts, including Mondelez, Tata Motors, and BP Castrol. Over the years, he built a reputation for driving modern, integrated, and award-winning work, the kind that wins metals at Cannes and keeps clients from straying.
His departure was marked in style. A farewell gathering was held in Delhi, attended by senior figures from across the advertising fraternity, a signal of the regard in which Nair is held in an industry that does not always pause to say goodbye properly.
Where he goes next is the question the industry is now asking. After 23 years at one of the world’s most storied agencies, the answer, when it comes, will be worth watching.
