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.
In addition to exploring new sales channels, personal branding has become increasingly important for entrepreneurs in the D2C space. The rise of social media has enabled founders to build personal brands that sometimes outshine their companies. "Building a personal brand is not only good for the individual but also for the business. Today’s youth are as much fans of entrepreneurs as they are of film stars or cricketers," Gupta also emphasised.
The Power of Community and Continuous Innovation
To navigate these challenges, D2C brands are increasingly focusing on community building. By creating a loyal customer base, brands can ensure repeat business even as competition intensifies. Gupta explained, "If you create a community, your customers are more likely to stay with you. They get better access to products, and you don’t have to rely solely on attracting new customers.”
However, the key to long-term success remains continuous innovation. He warned against complacency, pointing out that even industry leaders can be overtaken if they fail to adapt. "Don’t take things for granted. There is always someone ready to disrupt you," he advised.
Balancing Growth and Pressure
Despite the opportunities in the D2C space, the pressure to grow and maintain success is relentless. "The pressure to perform and show growth is immense. I love the zero-to-100 journey, but once you reach that point, the scrutiny and expectations only increase," Gupta shared. He described the challenge of balancing the demands of running a large company with the desire to continue innovating and leading in the market.
The session also touched on the intense work ethic required to succeed in this competitive environment. Gupta admitted to frequently working through vacations and prioritising business over personal time, especially during key sales periods like Diwali. "I work hard and party harder, but the demands of the business always come first," he said.
Customer Engagement Remains Key
Ultimately, Gupta stressed the importance of staying connected with customers as a cornerstone of success. He shared personal anecdotes of waiting hours outside offices to secure deals, underscoring the necessity of direct communication and engagement. "If you’re not meeting your customers and understanding their needs, you’re missing a crucial part of the business," he concluded.
As D2C brands in India continue to navigate this evolving landscape, the challenges of rising marketing costs, the need for innovation, and the importance of personal branding and customer engagement is set to define the next phase of growth for the industry.
