The Direct-to-Consumer (D2C) market in India is booming. With increasing internet and smartphone penetration, more and more consumers are shopping online and preferring to buy directly from brands rather than through traditional retail channels. However, building a successful D2C business in India comes with its own set of challenges. One of the biggest challenges is driving awareness and sales. This is where leveraging celebrities and influencers can make a huge difference.
According to a 2021 report by Avendus Capital, there are over 800 D2C brands in India currently, covering categories like fashion, beauty, food, healthcare, and more. The D2C market is projected to be worth $100 billion by 2025. However, the same report found that only 10% of D2C brands are able to generate over ₹10 crore in revenue. The rest struggle with customer acquisition and sales.
Digital marketing alone is often not enough to cut through the noise and drive sales at scale. Celebrity endorsements and influencer marketing can provide that extra push needed. Let's look at some statistics:
A 2020 study by Havas Media found that 77% of Indian consumers are likely to buy a product endorsed by their favorite celebrity. This is much higher than the global average of 44%.
Another study by GroupM India found that celebrity endorsed social media posts deliver 2-3x higher engagement rates compared to non-celebrity posts.
53% of Indian social media users say they are likely to buy a product suggested by an influencer they follow, according to 2021 research by Talkwalker.
Some successful examples of D2C brands leveraging celebrity power:
The sleep solutions brand Wakefit brought on board cricket icon Anil Kumble as a brand ambassador in 2018. Wakefit saw a 2x jump in sales after signing on Kumble. Their brand awareness also increased by 80%.
New-age beauty brand MyGlamm appointed actress Shraddha Kapoor as its brand ambassador in 2020. Within a year, MyGlamm's valuation jumped to over $100 million as it expanded its reach and product portfolio.
Yoga guru Baba Ramdev's Patanjali Ayurveda built an FMCG empire on the back of Ramdev's celebrity appeal. From 2015 to 2020, Patanjali recorded phenomenal growth - its revenues increased from ₹2500 crore to ₹10,000 crore. Ramdev's yoga-spiritual image provided a big endorsement for the natural products.
The key reasons why celebrity and influencer-led marketing works well for D2C brands in India are:
Broader reach: Celebrities often have millions of followers across media platforms. Associating with them allows brands to tap into these massive follower bases. Even niche micro-influencers have tens of thousands of engaged followers in their niche.
Consumer trust: Consumers in India repose a high degree of trust in celebrities. Their endorsement acts as a stamp of credibility and trust for brands. This prompts consumers to try newer D2C brands.
Virality: Celebrities and influencers make a brand's content more shareable. Their posts with branded products tend to go more viral than regular branded content. This creates buzz and awareness rapidly.
Democratization of influencer marketing: Earlier big celebrity endorsements were only accessible to large brands with big budgets. But now even smaller D2C brands can collaborate with long-tail micro-influencers in their niche with just a few thousand followers and drive impact. Apps like Trell make it easy to find relevant influencers.
Compelling storytelling: Good influencers do not just promote a product. They weave in brand stories into the narrative in an organic way. This content is more engaging for consumers.
Hyper-personalization: Micro-influencers are the next wave for D2C brands. Their audiences are small but highly engaged. These influencers can personalize promotion for niche D2C brands.
Risks of using influencers: No marketing strategy is without risks. Relying too heavily on celebrities comes with some caveats:
Celebrity scandals or controversies can negatively impact associated brands
Fake followers and engagement are common problems in influencer marketing
Metrics like sales or leads generated are harder to track vs. digital ads
Content quality control can be difficult with multiple influencer partners
Constant innovation required to keep campaigns engaging in long run
Celebrity and influencer marketing is becoming an indispensable element of the marketing mix for D2C brands in India. It boosts brand awareness, generates buzz, and drives sales. D2C brands must partner creatively and authentically with the right celebrity or influencer aligned with their positioning. When integrated well with the rest of the marketing strategy, it can hugely impact a D2C brand's trajectory. But quality control and risk management are crucial. In the influencer marketing-driven world that we inhabit today, no brand wanting to make its mark can afford to ignore celebrity and influencer power - especially not D2C brands wanting to succeed in the dynamic Indian market.