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Mar, 2022     

D2C channel to represent 12% of MENA e-tail, as early as 2023!

Consumers express high interest to explore new brands across sectors, driving adoption of Digitally native brands (DNB) 


1. D2C solves numerous challenges that brands face with marketplaces in online retail…

Challenges in Online retail and D2C solutions, Descriptive

There are numerous advantages of being on e-commerce marketplaces – large customer base & strong logistics capabilities being some of them. However, brands do face certain challenges with this channel as well – high price competition, lack of direct access to consumer data being some of the more teething issues. D2C channel solves for these challenges, effectively.

2. …and creates curated experiences for the right consumer cohorts, across the purchase journey

llustrative Examples of D2C

D2C brands are targeting specific consumer cohorts with curated products that cater to their needs, and not adopting a one size fits all approach. They D2C channel helps brands to be more connected to consumers and respond to their needs through their product assortment and marketing in a more real time manner, creating strong satisfaction and brand loyalty in the minds of consumers.

3. Additionally, consumers express high interest to explore new brands across sectors, driving adoption of Digitally native brands (DNB) 

Note(s): 1. Please state if you agree or disagree with the statement: I like exploring new brands 2. Please state if you agree or disagree with the statement: Once I find a brand I like, I tend to stick to it

Today’s consumers are also more exploratory in nature, wanting to try out new products/brands that have differentiated offerings. And this trend is seen across sectors, even in some of the sectors where brand loyalty has been very strong historically, like Electronics to take an example. This further emphasises the opportunity at hand for brands where they must design products suiting the more recent consumer needs/aspirations and thereby drive a lot more value to them. Marketing also needs to make a shift from broadcast marketing to more targeted marketing techniques like influencer/creator led marketing.

4. …and the DNB segment is growing faster within D2C – we could see some strong winners emerge in this space 

Digitally Native Brands (DNB) is a segment that is seeing a lot of traction within the D2C space and even on marketplaces. These are brands that have majority of their sales happening through the online channel. Their supply chain is very lean, enabling them to listen in to the pulse of the target customers and react in a timelier manner. The D2C-DNB segment is seeing strong resonance among consumers and is expected to see the highest growth in the next 2-3 year time horizon.