With more consumers preferring online shopping from the convenience of their homes, the eCommerce landscape is growing exponentially daily. Hence, amidst this fierce competition, you need branding to create your unique identity, build customer trust, and differentiate yourself. We will explore why branding is so important for your eCommerce business here.
eCommerce is a highly competitive and booming landscape transforming how consumers make purchases and going through a new era of innovation. With India’s retail eCommerce market projected to grow from about ₹8.42 trillion (~US $107 billion) to approximately ₹53.42 trillion (around US $640 billion) by the end of 2029, eCommerce brands are in for even greater competition.
Good branding is always about building customer trust that makes you a household name that your consumers can recognize, relate to, and rely on. According to Adobe’s 2022 Trust Report, 48% of Indian consumers said they would spend at least ₹75,000 more per year with brands they trust.
Imagine you are roaming around in a shopping mall to purchase some product, and every stall looks identical and shows a similar message. How difficult will it be to find the product you want and make a purchase decision, right? It is where branding can help you stay ahead of the competition by creating your unique identity and crafting your story with a perfect blend of imagery, taglines, and thoughtfully crafted marketing copy.
Branding gives your business the power of recognition and helps you stand out. So, let’s explore what is branding and why it is crucial for your eCommerce businesses.
Essence of Branding and What it Represents
eCommerce branding is creating an image for your company in the consumer’s mind through your company logo, tagline, visual elements, mission statement, and other elements that denote exclusively your company. It basically creates a visual identity for your eCommerce business through which consumers remember your products. Though a visual identity is essential for your brand image, it is equally significant that your actions and messages align with your brand identity, representing a unified brand personality across all channels.
A brand identity goes much beyond its logo, colors, or design. Though these elements are the identifying elements of your brand yet, that is not all. Most significantly, it represents the feelings and mental associations consumers have with your brand. For example, when you hear Starbucks, what feelings are invoked in your mind?
A well-executed branding exercise should clarify to your potential consumers what you offer, your brand values, and what differentiates you from the competitors they might purchase from.
Significance of Branding and Why it is Essential
As competition becomes more fierce in online retail, the importance of branding in eCommerce has increased manifold today. A well-crafted and effectively executed branding strategy leads to increased revenue, lowered customer acquisition costs, and customer loyalty. Here are the fundamental benefits of branding in eCommerce:
• Cohesive brand identity to drive revenue
Consistent brand identity is extremely crucial in driving revenue. The most important purpose of all your branding exercise is to make it easily recognizable to your consumers across all the marketing channels. Consistent branding presence also helps you build brand awareness as consumers see unified messaging as an indication of high quality. Indeed, a survey says that brand consistency can potentially increase revenue by 33%.
• Connect with customers emotionally
A well-executed branding exercise increases profit margins through repeat customers, a rise in purchase frequency, and an increase in average order value. When done right, branding connects you with your consumers at an emotional level, making them purchase more frequently from your store and turn them into your brand advocates. A Harvard Business Review says emotionally connected customers are 52% more worthy than generally satisfied customers. Similarly, a Motista study confirmed the same statement and found that emotionally connected customers have a 306% higher lifetime value [5.1 years].
• Reduces the cost of acquiring new customers
With more Direct-to-consumer brands entering the retail marketplace, customer acquisition costs [CAC] are rising for all businesses, especially eCommerce merchants and online retailers. Dollars spent on running advertisements on platforms such as Google, Facebook, and Instagram are no longer yielding similar returns as they did earlier. In India, the average customer acquisition cost (CAC) for eCommerce businesses is estimated to be between ₹1,500 and ₹2,000 per customer. So, if your branding increases awareness and reach, it would likely have a higher conversion rate, helping you lower your CAC.
• Helps showcase values that customers can relate to
A well-devised eCommerce brand strategy helps you become relatable to your consumers through shared values. It gives you an opportunity to identify what makes you a great brand in the eyes of your customers. Today’s customers value practices, such as ethical sourcing of materials, giving back to society, and environmentally friendly initiatives. These values have become a ‘must have’ for your brand as Google finds that 82% of consumers prefer a brand whose values align with theirs.
Conclusion:
In today’s fast-paced, competitive eCommerce landscape, branding is no longer a luxury if you want to thrive and stay competitive. If you don’t have a strong brand identity, you will float in the marketplace without a recognizable identity that consumers can easily relate to.
Branding makes you memorable to your customers, and if you can deliver on your promise, you will likely gain lifetime customers, customer loyalty, and brand advocates. Create a distinctive brand identity and voice that will distinguish you from the crowd.
You need to ask yourself your priority – whether selling products only or creating a brand that customers will remember and trust. Establishing a long-lasting relationship with your customers through your brand identity will eventually increase profit margins.
So, what are you waiting for? Create a consistent brand and thrive in your eCommerce business.
If you want an efficient 3PL provider to help you build your brand, connect with us; we will be happy to help.
About XPDEL:
XPDEL is a leading hi-tech provider of Fulfillment and Logistics Services on a mission to enable growth for eCommerce companies. We are futuristic in our vision and constantly work on creating technology that helps us meet customer expectations for today and tomorrow. Our wide network of Fulfillment centers enables us to efficiently handle deliveries across the globe. Choose agility with XPDEL!