Sometimes the cost of a keyword is more expensive than the product: Aman Gupta, boAt
At a retail summit, Aman Gupta, Co-founder & CMO of boAt, spoke about navigating through the hurdles of eComm platforms, and the power of innovation in building a brand
The rapid growth of Direct-to-Consumer (D2C) brands in India is hitting a new obstacle as marketing costs on eCommerce platforms continue to skyrocket. Startup founders are now finding it increasingly difficult to compete on the world’s largest e-commerce marketplace, where the price of key advertising terms sometimes surpasses the actual cost of the products they represent.
"Today, marketing on Amazon is not easy. The cost of a keyword for something like shampoo can be more expensive than the shampoo itself," said Aman Gupta, Co-founder & CMO of boAt, who was speaking at a retail summit.
This shift marks a stark contrast from the early days of D2C in India, where the industry was still in its infancy and entrepreneurs faced scepticism from investors. Gupta recalled, "When we started, there were no D2C brands, and people doubted whether the industry could become significant. We had to do everything ourselves, from learning marketing on YouTube to dealing with slow payment integrations.”
Adapting to Quick Commerce and Building Personal Brands
As the landscape continues to evolve, D2C brands are looking to new channels to reach customers. Quick commerce, which promises ultra-fast delivery times, is emerging as a critical avenue for growth. "For D2C brands, it's essential to jump on new channels like quick commerce. Some brands are already doing better on these platforms than on Amazon or Flipkart," Gupta further noted during the chat. He feels that quick commerce is here to stay and he advises other founders to not leave quick commerce as a channel. “If you ask me, our third biggest channel is quick commerce,” Gupta said.
