In today’s world, online shopping has become the norm and many companies are adopting an omnichannel approach to increase their market share and reach beyond the physical retail space. A consultancy firm named Redseer conducted research on over 1000 companies with over 2000 brands in key consumer product categories to identify companies that built a strong digital presence and disrupted the market. This research resulted in the Digital Disruptors ranking, which identified companies that stood out by utilizing digital innovation to increase their market share and achieve success.
The research categorized companies into three sectors: Electronics & Appliances, Fashion & Home, and Grocery & Personal care. The Digital Disruptors ranking was derived from multiple factors including online market share, ecommerce sales percentage, and growth and performance on ecommerce platforms.
To ensure the accuracy of the ranking, Redseer used their full toolkit which included Redseer Benchmarks to track the performance of leading eCommerce platforms, Redseer Brandverse to track the performance of over 2000 brands across 50 sub-categories, and Redseer eCommerce Diagnostic Toolkit to access Key Success Factors of eCommerce excellence.
The research identified 75 Digital Disruptors across three categories who created waves in the Indian eCommerce market in 2022 with successful innovations. The top 3 brands in Electronics & Appliances sector were boAt, BBK, and Asus, while Aditya Birla Fashion and Retail, Puma India, and Wakefit ruled the Fashion & Home sector. Hindustan Unilever, L’Oreal India, and Licious took the top positions in Grocery & Personal Care. The brands listed in the report accounted for ~$ 15 Bn in online sales, significantly impacting the Indian eCommerce market.
The CEO and founder of Redseer, Anil Kumar, stated that legacy companies need to focus on building digital capabilities and adopt an omnichannel approach to stay relevant in the digital age, as digital-first brands account for around 25% of online sales and are expanding their footprint in the offline market.
The research also highlighted common success factors for Digital Disruptors to achieve the right balance, such as leadership commitment, brand and product portfolio, dynamic pricing, best-in-class digital marketing, and an agile organization. These need to be backed by an execution approach that can rapidly adapt to market changes.
The methodology used for categorizing digital disruptors involved dividing the companies into four distinct quadrants based on select criteria. The early movers or the ‘Tigers’ in the eCommerce space scaled up rapidly and built their dominance online as well as offline. Legacy players, or the ‘Elephants’, are the dominant offline players who have scaled up well online.
‘Rabbits’ are typically digital-first companies who have leveraged the eCommerce space well but are yet to scale, while the legacy players that have built a good online presence but have a comparatively lower online market share are the ‘Turtles’. Players in the top quadrants will have to enhance their focus on offline sales, while the bottom quadrant will have to approach eCommerce aggressively.
The research also revealed that over 45% of Digital Disruptor brands are digital-first companies, which began as online ventures and expanded into new sub-categories. These companies are expanding their operations into the physical retail space to capture a larger market share.
Traditional brands across categories have recognized the criticality of ecommerce to stay relevant. However, while some have been able to mark their presence in the space, many have struggled to adapt to the agility and financial parameters of the online market. Currently, digital-first brands typically derive over 75% of their sales online, while traditional players garner less than 30% of sales from online transactions.