5 Step Competitor Analysis for Indian D2C Brands
As a D2C founder, you will realize that creating a great product is just the beginning. How do you make your brand make noise in the crowd? The answer is effective competitor analysis.
Competitor analysis isn't about copying what others do, it's about finding opportunities, identifying gaps, and creating a strategy that makes your brand unique. Whether you’re launching your first website, using a website builder, or refining your approach to finding your target audience, listed below are some steps that you can consider to develop a data-backed strategy to stay ahead:
Competitor analysis isn't about copying what others do, it's about finding opportunities, identifying gaps, and creating a strategy that makes your brand unique. Whether you’re launching your first website, using a website builder, or refining your approach to finding your target audience, listed below are some steps that you can consider to develop a data-backed strategy to stay ahead:
Step 1. Define Your Objectives
Before you get into the competitive landscape, take a minute to define your objectives. Think about:
- Why are we doing this analysis?
- What are the specific insights we're trying to get?
- How will these insights shape our business strategy?
Set Contextual Goals
In India, regional preferences, cultural nuances, and economic diversity are key factors. Tailor your objectives to align with these unique market dynamics. For example:
- Create a buyer persona to identify untapped market segments.
- Assess if competitors are overlooking Tier 2 and Tier 3 cities.
- Explore ways to culturally align your brand with local audiences.
Let’s say you’re discovering gaps in Ayurvedic skincare products targeting young urban professionals. Perhaps your competitors are not serving the budget-conscious consumers in smaller cities – a gap your brand can fill.
- Why are we doing this analysis?
- What are the specific insights we're trying to get?
- How will these insights shape our business strategy?
Set Contextual Goals
In India, regional preferences, cultural nuances, and economic diversity are key factors. Tailor your objectives to align with these unique market dynamics. For example:
- Create a buyer persona to identify untapped market segments.
- Assess if competitors are overlooking Tier 2 and Tier 3 cities.
- Explore ways to culturally align your brand with local audiences.
Let’s say you’re discovering gaps in Ayurvedic skincare products targeting young urban professionals. Perhaps your competitors are not serving the budget-conscious consumers in smaller cities – a gap your brand can fill.
Step 2: Uncover Your Competitor's Core Strategies
Every successful D2C brand has a strong purpose or "why" that leads the brand. Your task is to uncover what makes your competitors tick:
- Unique Value Proposition (UVP): What sets their products apart? Are they focusing on price, quality, or innovation?
- Audience Targeting: Who are your competitors targeting? Families, millennials, or niche markets?
- Brand Messaging: How do they convey their story and communicate values?
Action Tip:
Study your competitor's websites, testimonials, and product descriptions. If a competitor deals in premium sustainable clothing brands, analyze how they showcase their products and what customer needs they fulfill.
- Unique Value Proposition (UVP): What sets their products apart? Are they focusing on price, quality, or innovation?
- Audience Targeting: Who are your competitors targeting? Families, millennials, or niche markets?
- Brand Messaging: How do they convey their story and communicate values?
Action Tip:
Study your competitor's websites, testimonials, and product descriptions. If a competitor deals in premium sustainable clothing brands, analyze how they showcase their products and what customer needs they fulfill.
Step 3: Analyze Their Digital Strategy
As a D2C brand, your website and online presence are critical. An all-encompassing website competitor analysis will reveal how your competitors attract, engage, and retain customers.
- Website Performance
- Is the website mobile-friendly?
- How seamless is the navigation?
- Are the calls-to-action (CTAs) clear and enticing?
For instance, a clothing brand's website may feature smooth navigation with filters by size, color, and occasion. If your website lacks these, it is high time to optimize. - SEO and Content Strategy
- Use SEMrush or Ahrefs to analyze competitors' keywords for which they rank.
- Look into their blog topics, FAQs, and product pages.
For example, if your competitors rank for "affordable skincare in India," you may want to target similar but not-yet-tapped keywords like "natural skincare for dry skin in India." - Social Media and Engagement
- Which platforms are they active on?
- Are their campaigns focused on Instagram influencers or YouTube reviews?
In India, regional influencers generate more engagement than the national celebrities. Look for such hyperlocal strategies. - Paid Ads
- Use tools like SpyFu to analyze their Google Ads or social media ad copy.
- How frequently do they target specific audiences?
Example:
If your competitor ranks for “affordable skincare in India”, identify niche keywords they’re overlooking, such as “organic skincare for teens in tier 3 cities”.
Step 4: Understand Customer Sentiments
Competitor analysis often overlooks the most important aspect: how people feel about their products and services. This will help you get through your product development and brand messaging. Methods to use:
- Review Analysis: Explore product reviews on Amazon, Flipkart, or their own websites. Categorize them into positives (what people love about it) and negatives (what frustrates people).
- Social Listening: Analyze hashtags, comments, and mentions on Instagram, Facebook, and X. Scan for repeat mentions of themes, such as "great customer service" or "poor delivery times."
- Surveys and Focus Groups: Conduct small surveys to collect direct feedback about your competitors’ offerings. For example, if reviews repeatedly comment on competitors' frequent delivery delays, market your brand as reliable as your fast shipping.
- Review Analysis: Explore product reviews on Amazon, Flipkart, or their own websites. Categorize them into positives (what people love about it) and negatives (what frustrates people).
- Social Listening: Analyze hashtags, comments, and mentions on Instagram, Facebook, and X. Scan for repeat mentions of themes, such as "great customer service" or "poor delivery times."
- Surveys and Focus Groups: Conduct small surveys to collect direct feedback about your competitors’ offerings. For example, if reviews repeatedly comment on competitors' frequent delivery delays, market your brand as reliable as your fast shipping.
Step 5: Turn Insights into Actionable Strategies
Competitor analysis without execution is just a wasted effort. Use your competitor analysis to drive concrete strategies:
- Differentiate Your Offerings: If competitors ignore certain demographics, like non-metro buyers, focus your efforts on these markets.
- Improve Product Features: Compare features, pricing, and packaging. Introduce premium versions of a product or bundle deals if competitors are giving away the basic version.
- Optimize Your Marketing Channels: If your competitors succeed on Instagram but outperform on YouTube, take advantage of these platforms to reach a wider audience.
- Sharpen Your Brand Story: Highlight what makes your services or products best, it could be ethical values, pricing, or exceptional customer service.
For example, a foot manufacturer can distinguish itself by offering customized footwear. Promote this feature quite clearly on your website and in your marketing.
Real-World Application
Suppose you are launching a sustainable fashion brand in India. Your competitor analysis reveals:
- Competitors focus on urban audiences but neglect affordable options for students.
- Reviews indicate customers appreciate transparency in sourcing but lack affordable sustainable clothing options.
- Their websites are messy and not mobile-friendly.
Your Strategy:
- You launch a student-friendly line of affordable eco-fashion.
- Create a clean, mobile-friendly website using a website builder to communicate transparency.
- Leverage local influencers to reach Tier 2 and Tier 3 towns.
- Differentiate Your Offerings: If competitors ignore certain demographics, like non-metro buyers, focus your efforts on these markets.
- Improve Product Features: Compare features, pricing, and packaging. Introduce premium versions of a product or bundle deals if competitors are giving away the basic version.
- Optimize Your Marketing Channels: If your competitors succeed on Instagram but outperform on YouTube, take advantage of these platforms to reach a wider audience.
- Sharpen Your Brand Story: Highlight what makes your services or products best, it could be ethical values, pricing, or exceptional customer service.
For example, a foot manufacturer can distinguish itself by offering customized footwear. Promote this feature quite clearly on your website and in your marketing.
Real-World Application
Suppose you are launching a sustainable fashion brand in India. Your competitor analysis reveals:
- Competitors focus on urban audiences but neglect affordable options for students.
- Reviews indicate customers appreciate transparency in sourcing but lack affordable sustainable clothing options.
- Their websites are messy and not mobile-friendly.
Your Strategy:
- You launch a student-friendly line of affordable eco-fashion.
- Create a clean, mobile-friendly website using a website builder to communicate transparency.
- Leverage local influencers to reach Tier 2 and Tier 3 towns.
Conclusion: Competitor Analysis as a Growth Catalyst
For Indian D2C brands, Competitor analysis is about knowing the nuances of regional cultures, preferences, and hyper-local trends. By conducting systematic research, you can identify hidden opportunities, enhance your customer experience, and refine your product and service offerings. Whether it’s website competitor analysis, creating a buyer persona, or improving your target audience research, the key is to remain curious and adaptable.
If you want to bring your strategy to reality, you may consider SmartBiz as your e-commerce site builder that is specifically made for Indian brands. SmartBiz is a free-to-use tool to create a professional and user-friendly website that may help you achieve your D2C goals.
If you want to bring your strategy to reality, you may consider SmartBiz as your e-commerce site builder that is specifically made for Indian brands. SmartBiz is a free-to-use tool to create a professional and user-friendly website that may help you achieve your D2C goals.