THE D2C MODEL OF WHITE GOODS NIRANJAN GIDWANI
CERTIFIED BOARD DIRECTOR (MCA - INDIA) | BOARD MEMBER | ESG
DIRECTOR | DIGITAL DIRECTOR | FELLOW - BOARD STEWARDSHIP |
MEMBER UAE SUPERBRANDS COUNCIL | HBR ADVISORY COUNCIL
The appliance industry stands on the cusp of transformation.
Over the past decade,
industries from fashion to wellness have reaped
the rewards of direct-to-consumer e-commerce - driving higher
margins, improving customer loyalty, and enabling unique business
models. While appliance companies have started embracing DTC
practices, there seems to be massive untapped potential.
Estimates indicate that roughly one-third of shoppers will visit a
manufacturer’s website during the buying process, but a substantially
lower number complete their purchase on the site. DTC e-commerce
matters for appliance makers, yet there could be challenges holding
them back.
DTC e-commerce is now a robust strategic channel that delivers
tangible benefits across major categories. For the appliance sector, the
opportunity is particularly compelling because by bypassing
intermediaries, manufacturers can capture up to 20–30% more in their
gross margins, benefiting directly from digital relationship-building, up-
selling, and bundled offerings.
DTC unlocks avenues for cross-sell, shorter renewal cycles, and
tailored communications based on first-party data collected through
direct interactions. A well-executed DTC approach allows companies
to control the end-to-end customer experience, resulting in stronger
brand loyalty, especially critical as markets grow more competitive.
DTC can open doors to subscriptions, value-added services (warranty
extensions, installation, or connected apps), and even product
customization. These are business models that traditional distributors
rarely offer.
Yet, despite strong interest, industry adoption remains sluggish.
Today’s white goods consumer is pragmatic. More and more consumers
are prioritizing products that are long-lasting, energy-efficient, and easy
to use. Trustworthiness has risen to a major purchase factor alongside
value and ease of use. The share of consumers waiting 10 or more years
to replace appliances has risen to almost 40%, limiting volume growth.
Yet, a huge opportunity area has been created for aftermarket
engagement and loyalty-building. About a third of buyers use
manufacturer websites for research, and although online purchases still
represent just 20% of total value sales, these digital touchpoints are
crucial for influencing the purchase journey and gathering richer data.
Younger consumers are showing a stronger interest in advanced and
connected features, while older segments remain focused on reliability
and cost. Also, the newer generation has no patience to wait
indefinitely while making repeated customer service complaints.
Despite clear upside, appliance brands face tough hurdles transitioning
to a DTC-driven model. There is this constant fear of jeopardizing retail
partnerships, especially for brands with historically low DTC sales.
However, those with more mature DTC operations report that this
conflict is manageable and less of a barrier.
Many appliance manufacturers lag behind in digital skills, experience
design, and supply chain responsiveness, limiting their ability to
create seamless, on-par experiences with leading digital retailers. DTC
success depends on cross-department collaboration—yet many
companies operate in silos, without a clear digital strategy or
sufficient investment in internal talent and technology. While
consumers crave services like convenient installations, extended
warranties, and maintenance, many brands under-serve these needs,
missing opportunities to create ongoing engagement post-purchase.
Top performers articulate a specific DTC ambition, grounded in
customer needs and informed by smart price parity and differentiation
on service, rather than just discounting.
Brands must invest in e-commerce websites that are easy-to-navigate,
offer compelling promotions, and showcase unique features, services,
or bundled accessories not found in retail channels. Effective DTC
operations require collaboration across sales, marketing, IT, supply
chain, and finance. Upskilling teams and aligning sales incentives are
essential.
Brands need advanced analytics and marketing capabilities to
personalize content, recommend products, and deploy targeted digital
campaigns. This may require relaunching e-commerce sites with
intuitive UX/UI. Improving fulfillment in terms of fast delivery and
flexible returns, creating exclusive online offers, expanding aftermarket
services and forging ongoing relationships beyond the point of sale.
The shift toward DTC in the appliance sector is both a necessity and an
opportunity. Brands that stay ahead will be those that treat the DTC
transition as more than a new channel. They may need to make it a
core part of their business model. Invest in technology, talent, and
supply chain agility to match retail partners’ standards.
India’s leading white goods brands are rapidly scaling their direct-to-
consumer (DTC) strategies by integrating digital platforms and
executing omnichannel marketing. The sector is witnessing a surge in
production volumes, and brands are leveraging end-to-end digital
journeys—from discovery to transaction—making use of sophisticated
CRM systems and digital transformation initiatives to engage
consumers directly. These strategies extend reach into rural markets,
where sales are now driven by newly discerning, digitally aware middle-
class buyers, and are supported by a multi-touchpoint approach for
improved upselling and customer retention. Indian brands are
redefining customer experience through predictive targeting and
lifecycle-based engagement, providing richer, more personalized
interactions and greater convenience for shoppers.
However, despite these strides in digital consumer engagement, after-
sales service continues to be a weak link for many white goods brands
in India. Customers regularly report issues such as delays, lack of
responsiveness, and poorly trained technicians, especially in Tier 2
and Tier 3 cities where service networks remain underdeveloped.
While some manufacturers and third-party service providers are
expanding their footprint and digitizing booking and support processes,
the core problems persist: slow warranty support, inconsistent repair
quality, and limited access to genuine parts. This gap in post-purchase
services often leaves customers dissatisfied and undermines long-term
brand loyalty, highlighting a critical need for brands to invest in training,
network expansion, and robust service infrastructure if they wish to
fully align with evolving consumer expectations and reap the benefits of
their DTC success.
SHORT PROFILE -NIRANJAN GIDWANI
Niranjan is a Certified Board Director (MCA-INDIA), Board Member,
certified ESG Director, Digital Director, Fellow of Board Stewardship
and former CEO of Eros Group Dubai. He has just completed his
International Corporate Director Certification Program.
He is also a member of the UAE Superbrands council, board member
of the UAE Society of Sustainability and Green Materials, and HBR
advisory council.
Niranjan is a Mechanical Engineering and an MBA from the Symbiosis
Institute of Management, Pune.
Niranjan has over 43 years of hardcore senior management
experience, out of which he has headed businesses in Hongkong,
Germany, Singapore and Dubai for 35 years. He has done business
related travel to over 60 countries.
Niranjan is a regular contributor to articles on Corporate Governance,
Marketing, Strategy, Ethics, Ethical living in various Indian and Gulf
publications, and also has his own blog www.thoughtcollectiv.com
