Overcoming Low-Value Perception in India’s E-commerce Industry

India’s e-commerce market, projected to reach $200 billion in GMV by 2030, is a battleground for brands vying for customer loyalty. Yet, many face low-value perception, where customers view products as inferior or unworthy of premium pricing, eroding ecommerce brand value, customer retention, and profitability. This article, customised for senior leaders in India’s e-commerce sector, explores why low-value perception arises, its impact, and how a robust Go-To-Market (GTM) strategy can elevate customer perception, strengthen brand equity, and drive sustainable growth with insights from LawCrust, a leader in strategic consulting.

GTM Strategy Overview: Understanding Low-Value Perception

Low-value perception in e-commerce occurs when customers believe a product offers insufficient benefits for its price, regardless of its actual quality. This perception undermines ecommerce brand value by reducing willingness to pay, lowering conversion rates, and increasing churn. Poor positioning failing to communicate unique value or an ill-conceived pricing strategy, such as heavy discounting, often triggers low-value perception. For instance, a brand with inconsistent pricing or lackluster product presentation risks being seen as low-quality, even if its products are competitive. Addressing this requires a strategic GTM approach to align product, messaging, and market presence with customer expectations in India’s price-sensitive yet aspirational market.

1. Diagnosis: Key Drivers Behind Low-Value Perception

Several factors contribute to low-value perception in India’s e-commerce landscape:

• Poor Product Imagery or Content: Low-quality visuals, vague descriptions, or uninspired storytelling fail to showcase product benefits. With 70% of Indian online shoppers relying on visuals for purchase decisions, substandard content amplifies low-value perception.
• Inconsistent Pricing Signals: Pricing significantly below category norms (e.g., apparel priced far below Myntra or Zara) without clear justification signals inferiority, reinforcing low-value perception.
• Weak Brand Story or Lack of Trust Signals: A generic narrative or absence of trust elements like certifications, customer testimonials, or security badges undermines credibility, fostering low-value perception.
• Absence from Premium Marketplaces or Poor Reviews: Selling only on discount-driven platforms like Meesho or accumulating negative reviews on Amazon or Flipkart cements a low-value image.
• Overuse of Discounts: Excessive promotions, common during festive sales like Diwali, habituate customers to expect discounts, diluting ecommerce brand value and reinforcing low-value perception.

2. GTM Strategy Framework to Address Low-Value Perception

A comprehensive GTM strategy, informed by LawCrust’s expertise, can reverse low-value perception through five key pillars:

• Positioning Fix

Craft an emotional value proposition that resonates with target personas. For example, a D2C skincare brand could shift from “affordable creams” to “science-backed, sustainable skincare for modern Indian women,” countering low-value perception by aligning with aspirational values.

• Channel Strategy

Shift from discount-driven platforms to curated or premium marketplaces like Nykaa Luxe, Tata Cliq Luxury, or niche D2C websites. These channels signal quality and attract discerning shoppers, reducing low-value perception.

• Pricing Strategy

Employ sophisticated pricing strategies to convey higher value. Use anchoring (displaying a higher reference price), decoy pricing (offering a less attractive, higher-priced option), or bundling (pairing products for perceived value). For instance, a Rs. 2,000 skincare set with a free travel kit feels more valuable than a standalone product.

• Customer Perception Levers

Leverage social proof (prominent reviews, ratings), influencer marketing, and user-generated content (UGC) to build credibility. With 60% of Indian shoppers trusting influencer recommendations, a fashion brand partnering with micro-influencers on Instagram can shift customer perception.

• Branding & Packaging

Invest in premium visual identity, unboxing experiences, and ESG cues like sustainable packaging. These elements elevate ecommerce brand value and counter low-value perception by signaling quality and ethical commitment, appealing to India’s growing conscious consumer base.

3. Tactical Execution by Function

To operationalise the GTM strategy, cross-functional alignment is critical:

• Marketing: Realign messaging to emphasise outcomes (e.g., “long-lasting wear” for apparel) or lifestyle fit (e.g., “crafted for urban trendsetters”). Use A/B testing to refine campaigns targeting low-value perception.
• Sales: Equip teams with comparative claims (e.g., “superior to imported alternatives”) and guarantee-backed CTAs like “100% satisfaction or your money back” to build trust.
• Product: Rationalise SKUs to focus on hero products, incorporating differentiators like unique designs, sustainable materials, or proprietary technology to justify premium pricing.
• Tech: Enhance UI/UX with high-quality visuals, personalised recommendations, and storytelling features like “Behind the Craft” pages to elevate customer perception.
• Finance: Run pricing elasticity experiments to identify optimal price points and LTV/CAC simulations to ensure profitability aligns with repositioning efforts.
• Legal: Trademark unique messaging (e.g., taglines) and ensure promotions avoid misleading claims to maintain trust and compliance, as advised by LawCrust’s legal experts.

Case Studies & GTM Wins

The Souled Store, a D2C apparel brand, exemplifies a successful GTM reset. Initially struggling with low-value perception due to heavy discounts and generic imagery, the brand transformed its approach:

• Positioning: Repositioned as “pop-culture-inspired fashion for the bold,” targeting Gen Z with vibrant storytelling.
• Pricing: Introduced premium bundles (e.g., tee + cap combos) and reduced discount frequency.
• Channels: Expanded to Nykaa Fashion and curated pop-up stores, signaling quality.
• Perception Levers: Partnered with influencers and leveraged UGC on Instagram, boosting engagement by 40%.

Results:

• Before: Conversion rate: 1.5%, AOV: ₹800, organic search sentiment: “cheap,” “discount.”
• After: Conversion rate: 3.2%, AOV: ₹1,800, organic search sentiment: “quality,” “trendy.”

This shift demonstrates how a strategic GTM approach can overturn low-value perception and enhance ecommerce brand value.

Conclusion: Strategic Reset for Long-Term Brand Value

Combating low-value perception is a strategic imperative for India’s e-commerce brands. An integrated GTM strategy aligning positioning, pricing strategy, channels, and customer engagement reinforces ecommerce brand value, builds trust, and improves unit economics. By investing in premium visuals, credible storytelling, and strategic pricing, brands can shift customer perception, foster loyalty, and achieve sustainable growth in India’s competitive e-commerce landscape, with LawCrust’s strategic guidance paving the way.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal Consulting to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

For expert legal help, please contact us:

• Email: inquiry@lawcrustbusiness.com