Why is User-Generated Content driving marketing for D2C brands in India?

With more and more consumers on the lookout for purpose-driven brands, several businesses creating user-generated content are slowly dominating the social media space

While the concept of User-Generated Content has a long stemming history as a way of communication, with the rise of social media during the early 2000s, brands started taking note of its potential as a way to gain social proof and build a dedicated community. More brands are utilising customer-created content for marketing purposes, especially Direct-to-Commerce or D2C brands, which are digital-first. They are choosing to commission micro-influencers from their customer base to create content that resonates with their brand’s voice and ethos. 

With a rise in the number of customers looking towards purpose-driven brands, user-generated content–or UGC–from those that would vouch for the brand, is what is currently ruling the social media space. According to Business Wire, most modern customers are increasingly looking for authenticity from brands, and UGC is the best way to illustrate the same. The report states that consumers are 2.4 times more likely to believe that UGC is more authentic as compared to branded content.

To better understand the shift from traditional marketing practices to UGC in the Indian context, The Established speaks with leading brands and creators in the lifestyle vertical. 

Shifting gears 

While celebrity endorsements or influencer marketing continues to be relied upon by bigger brands, smaller D2C brands are increasingly turning to UGC-driven marketing for several reasons.

With people looking for relatability more than anything, earned media is becoming the biggest driver of trust in brands. According to Ananya Kapur, founder of make-up brand Type Beauty, “The shift towards UGC has come about because many customers in the market have become aware that the content produced by influencers is often sponsored and lacks authenticity. In contrast, UGC provides genuine and realistic content, which is why we have always preferred content created by our consumers, who are the end-users of our products.”

But with an increasing number of D2C brands having smaller budgets entering the market–which is usually dedicated to the actual manufacturing of their products–UGC is also a means to an end. According to Vishakha Bhaskar, co-founder of inclusive fashion brand Angrakhaa, “For a lot of D2C brands, depending on UGC is inevitable. During the inception of our brand, we used a lot of content that we shot ourselves and with our friends. We didn’t opt for professional shoots as we didn’t have the budgets for it.”

According to the Nielsen Consumer Trust Index, 92 per cent of customers trust organic UGC over traditional advertising. This can be credited to UGC’s power to inform and educate customers. According to Ruta Kamat, founder of Good Graze which offers coconut-based pantry staples, “UGC can help educate potential consumers, especially in the case of niche products. While there needs to be a mix of approaches to add value to your audience/potential customers, in my opinion, the connection and trust that UGC creates is unmatched.” 

At the other end of the spectrum, when people are turning more towards content curators and micro-influencers, being a creator with an engaged community online instils a responsibility to be honest and to educate. For Khadija Islam, a creator in the skincare niche, the value that she adds stems from her expertise. “As a creator, the value that I provide for user-generated content is because I can test out products for a good period of time and have the liberty to try more variants which is what normal users would. This enables me to voice my thoughts and create content that will be searched for and, at the same time, helps the user make an informed decision.”

From driving sales to community-building

For Arthi Raghuram, founder of skincare brand Deyga Organics, UGC is the ultimate expression of a D2C brand’s community that reflects not only the power of the product but also the loyalty and passion among its customers. “By incorporating UGC into the social media marketing strategy, D2C brands can build stronger connections with their audience, drive engagement, and cultivate a sense of belonging that inspires advocacy and growth,” she shares.

As someone mindful of her consumption and having previously worked with Kindlife, a new-age beauty and wellness platform that caters to conscious customers, Islam shares, “For community-building, UGC keeps things more relatable and the connection and trust that it creates is unmatched. It can help educate potential consumers, especially in the case of niche products, and add a personal touch instead of being entirely sales-driven and cold.”

Reeshna Ibrahim, a content creator and the community coordinator for spice brand Diaspora Co., says that UGC is a way for brands to truly be seen. She says,“Most people are now selective about the brands they interact with and mindful about the content they consume. But positioning the content in the right way and coming from an honest space is a great way to connect with the audience and build a community that keeps coming back.” This is in agreement to an idea that is supported by leading marketers - brands that position themselves with transparency can capitalise on that trust and credibility to carve out space for themselves.

Bhaskar agrees with the fact that UGC is a way for brands to differentiate themselves from among the glut of other smaller businesses that are cropping up almost every other day. She says that UGC is a defining factor for a fashion brand, adding, “For brands as opposed to designers, UGC is a differentiating factor  because it shows that people have actual confidence in your products. This adds a lot of credibility in a domain that is so saturated.”

People buy from people

While UGC might be a marketing strategy that is ruling the lifestyle industry of late, there is a significant difference in how it differs among fields. While customers in the fashion field look towards markers of “relatability, styling and quality” from UGC, according to Bhaskar, consumers look to the UGC from beauty brands to see the products in action. According to Sejal Goyal, founder of skincare brand Suhi and Sego, “UGC videos are one of the only ways for my potential customers to see the product in action. It brings out an honest and real experience of the packaging, product textures, and post-application feel. It lends the sort of authenticity that professional creative posts and videos cannot do.”

While D2C brands cannot provide the experiential shopping opportunity of a physical store, through their UGC content, they are creating social proof and lending authenticity to brands that are otherwise digital-first. In fact, Taggbox, a leading UGC content marketing platform reports that 70 per cent of customers look at user reviews to make purchase decisions. This is especially true in the case of consumables. “UGC can help build trust (in every category) but it’s especially true in the food industry in India. Everyone claims their products are natural and organic  but getting reviews from real people can help validate the authenticity of a brand.”

This shift towards employing the power of the community is seemingly a way to hold on to an age-old marketing adage–people buy from people. At the end of the day, through its many varied formats, UGC in the lifestyle sector is a way to establish a brand or product in a way that blatant advertising simply cannot–as a solution to a problem that is vouched by people in the same boat, or as a reliable addition to one’s life that others believe in. 

As Kamat puts it, “A brand can portray their products in a certain way but UGC can help take it up a notch with different viewpoints on how a food product can be used or incorporated according to your lifestyle.”

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