D2C Brands Elevate Brand Bharat with Festive ONDC Leveraging

In sync with the prevailing mood of the electorate and the impending national elections, 'Brand Bharat' has become a ubiquitous presence, gracing banner headlines, solemn placards, and vibrant social media posts alike. As the country strides towards its major festive season, brands are going all out to embrace the essence of 'Brand Bharat' in a bid to resonate with the masses.

With an ever-expanding internet user base and a burgeoning middle class, India's e-commerce industry has undergone significant growth. Valued at around $22 billion in 2018, it skyrocketed to $72 billion in 2022, with a forecast by Deloitte estimating that it could reach a staggering $325 billion by 2030. Statista paints an even more ambitious picture, projecting a market worth $350 billion.

Crucial to this growth, particularly in the eyes of the Union government, is the emergence of the Open Network for Digital Commerce (ONDC). In a fiercely competitive and crowded arena, ONDC is rapidly gaining recognition as a major force to be reckoned with.

Indigenous brands are harnessing the potential of ONDC to extend their market reach, seamlessly integrate with e-commerce platforms, implement cost-effective marketing strategies, facilitate seamless financial transactions, and leverage data-driven insights to enhance their visibility and revenue during the festive season. A noteworthy development is the innovative ONDC Network Gift Card, a pioneering network-level gift card that promises to revolutionize corporate gifting and employee engagement. Featuring a maximum value of Rs 10,000, this card operates in conjunction with India's native Rupay Network and is offered by several banks and fintech institutions holding RBI-endorsed licenses for prepaid transactions.

The return on investment from ONDC during the festive season is expected to be higher, driven by its increasing adoption rate. However, while these percentages remain relatively modest in absolute terms compared to retail and large e-commerce channels, ONDC presents an additional sales channel for brands, both homegrown and multinational. Products aligned with local customs and traditions are gaining traction, reflecting a growing trend among brands launching items that resonate with Indian consumers' preferences.

ONDC's network already boasts over 50,000 merchants, primarily in groceries and food, with other segments like fashion and accessories showing rapid growth. SMEs can benefit from ONDC in various ways, from enhancing visibility to gaining credibility and tapping into a diverse consumer base. The platform's proposed lower margin structures offer an advantage to brands and promise better profits for sellers and increased value for consumers, particularly during the peak festive season.

Brands like boAt, Havells, and Fabindia are capitalizing on the 'Bharat' concept and locally crafted products, aligning with the preference for homegrown items and a sense of national pride among consumers. By showcasing products that authentically represent India, these brands can create unique identities, connecting with consumers who appreciate traditional craftsmanship and support for local businesses. Moreover, promoting locally made products can contribute to sustainability and environmental awareness, crucial factors in consumer decision-making.

For brands seeking to establish their presence in e-commerce, focusing on three key aspects—Connectivity, Convenience, and Cost-effectiveness—is essential. Homegrown brands have a golden opportunity during the festive season to strategically harness ONDC to expand their reach and connect with a broader customer base. By showcasing their products on the expansive ONDC platform, they can enhance product visibility, making it easier for potential buyers to discover and purchase items during the festive shopping spree.

A multi-faceted approach is key, from quick product listings and competitive pricing to targeted marketing campaigns and top-notch customer service. ONDC calls for fast product listings, emphasizing the allure of 'Made in India'—an important factor in brand promotion. By embracing this trend and leveraging ONDC, homegrown brands can tap into the 'Bharat' sentiment, offering locally crafted products that connect with consumers, stand out in the market, and drive sales to new heights.

As the festive season approaches, the stage is set for ONDC and 'Brand Bharat' to take center stage, offering a unique opportunity for brands to make their mark in the thriving world of Indian e-commerce.