What is "UIGC," the secret strategy for winning in D2C Inc. business? A case study of a premium sweets brand

"D2C Inc." stands for Direct To Consumer Inc. It's a business model where companies or individuals connect directly with consumers online to sell products or services, bypassing retail stores and distributors.

While this is an area now being pursued not only by startups but also by large corporations, is there a secret formula for "how to succeed" when launching a D2C Inc. brand?

In this series, we hear from Kenta Izumi, Founder and Chairman of influencer marketing company Tagpic and Brand Producer at Marche, a D2C Inc. marketing company, about the secrets to developing a D2C Inc. brand.

This installment focuses on "Product Development and Communication That Resonate with Consumers," featuring insights from Mr. Izumi himself, illustrated with the success story of Marche's D2C Inc. brand, "BRANCHÉ CHOCOLAT."

BRANCHÉ CHOCOLAT
https://branche-chocolat.jp/
Driven by the desire to "spread truly good things," the brand collaborates with Riku Yakushijin, one of Japan's leading French chefs, to create premium sweets using high-quality ingredients sourced from across Japan. With a focus on flavor, texture, ingredients, and design, the brand meticulously crafts the entire experience: the anticipation before tasting, the surprise upon eating, and the joy of sharing.

<Table of Contents>
▼BRANCHÉ CHOCOLAT: The D2C Inc. Premium Sweets Brand That Spread Through "Empathy"
▼D2C Inc. Brands Must Prioritize "Story First"
▼What is "UIGC" that Engages Users and Influencers?
▼Involving Influencers from the Development Stage Increases Success Probability
▼Ultimately, the Source of Empathy is "Something Truly Good, Something Unique"

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・Who is Kenta Izumi?
Founder and Chairman of Tagpic. A hybrid executive who also serves as a gourmet influencer with over 460,000 followers primarily on Instagram/TikTok via his personal SNS account "@nikuterrorist".
Leveraging his experience in the financial industry and as a professional manager at listed companies, he is also a "Listing Specialist" who has enhanced the corporate value of numerous companies through branding and strategic consulting.

・What is Tagpic?
An influencer marketing company boasting top-tier results in building empathy through SNS branding, with 5,000 influencers across Japan and Asia.
Executives and employees, including Mr. Izumi and co-founder and CEO Ayumi Yasuoka, actively serve as influencers themselves, possessing deep expertise in the success principles of SNS and D2C Inc. In September 2020, it established Marche, a subsidiary specialized in D2C Inc. https://tagpic.jp/

Dentsu Inc. and Tagpic
Dentsu Inc. has formed a business alliance with Tagpic and its group subsidiary Marche, which specializes in D2C Inc. brand development. ( See press release for details )

"BRANCHÉ CHOCOLAT" – The D2C Inc. Luxury Sweets Brand That Went Viral Through "Empathy"

Founded in 2020, Marche is a new 'D2C Inc. × Influencer' specialist company within the Tagpic Group, which has supported corporate SNS branding.

While Marche is a company that "supports corporate D2C Inc. businesses," it actually launched its own in-house developed D2C Inc. brand simultaneously with the company's founding in September 2020. That brand is the Japanese-born luxury D2C Inc. sweets brand "BRANCHÉ CHOCOLAT."

Immediately after its release, it received an overwhelmingly positive response. It frequently sold out in under three minutes after sales began, and its Instagram account gained 20,000 followers within just four months of launch.

Spreading awareness primarily through social media at a faster-than-expected pace, influencers and celebrities alike have posted photos on their own Instagram accounts. Repeat purchases are steadily increasing.

Its distinctive cube-shaped product form and overwhelming support among gourmets propelled the official Instagram follower count to 20,000 within months of launch. Of course, the brand employs optimal approaches across multiple social media platforms, not just Instagram.

Previously, we discussed how "whether customers can empathize with the brand's story and worldview" significantly influences the success of a D2C Inc. business. BRANCHÉ CHOCOLAT is precisely an example of success built around that core "empathy."

So, what exactly should you do to design communication that resonates with consumers when developing a D2C Inc. brand? Let's explore this by examining the rollout of BRANCHÉ CHOCOLAT.

D2C Inc. Brands Must Be 'Story-First'

Some readers of this article may be corporate product developers. When you embark on new product development, where do you start?

While methodologies may vary slightly, the typical approach involves "organizing market research and competitor product features based on marketing theory, identifying your company's competitive advantage, selecting your target audience, and so on."

However, when developing a D2C Inc. brand, before marketing comes

the creator's strong passion

is what gives birth to the brand.

While there are various ways to resonate with consumers, one crucial element is "solving their problems or challenges." Therefore, a classic "story" example is when the creator themselves is the one facing that problem or challenge, and their personal experience as a consumer becomes the catalyst for product development.

D2C Inc. brand websites often feature such founding stories, so I highly recommend reading them.

BRANCHÉ CHOCOLAT was born from my own passion as an influencer who is always "eating my way around," fueled by the desire to "make the world more aware of the truly delicious ingredients scattered throughout Japan."

For example, BRANCHÉ CHOCOLAT started by using "Yame tea" as its raw material. While many associate premium matcha with "Kyoto" or "Uji," Fukuoka Prefecture's Yame tea is actually the brand that won first place in the national tea competition determining Japan's top brand(※).

While it's well-known among some chefs and gourmets, unfortunately, it hasn't reached the same level of recognition as Uji matcha among the general public.

(※) Yame Tea won first place in the Gyokuro category at the 74th National Tea Competition! Yame Tea swept the top 20 spots!!
https://prtimes.jp/main/html/rd/p/000000001.000066744.html

Japan also boasts many other wonderful ingredients that aren't yet widely known to the general public, yet are adored by food connoisseurs and professional chefs alike.

As a foodie myself, I've encountered top-tier Japanese ingredients prepared by outstanding local chefs.

"I want to deliver the world's most delicious chocolate sweets made with Japan's finest ingredients to consumers and share the joy and delight of encountering 'Japan's inherently good things' with the world."

"By launching Japan's premier chocolate dessert brand globally, I also want to give back to the farmers who produce these ingredients."

With these strong convictions, I launched this brand.

Chef Riku Yakushijin, who shares this vision, was originally a fellow food enthusiast. When I mentioned my still-conceptual idea of creating "the world's finest luxury sweets, meticulously crafted using Japan's finest ingredients," he deeply resonated with it, saying, "I'm not a pastry chef, but this sounds fascinating—I'll make them." This led to our collaboration on product development.

Incidentally, SUGALABO, where Chef Yakushijin was then working, is Japan's premier French restaurant. It achieved the world's highest score in the global restaurant ranking "LA LISTE 2020" and was the first restaurant in the world to collaborate with Louis Vuitton, opening a location in Osaka.

This project began by gathering top-tier ingredients and top-tier chefs.

As a result, BRANCHÉ CHOCOLAT resonated with and gained support from fellow gourmets like myself, those passionate about food and lifestyle, and professional chefs. They actively helped expand its recognition.

Like BRANCHÉ CHOCOLAT, starting product development from the creator's strong passion rather than a marketing perspective is one key point for creating a 'story-first' D2C Inc. brand that resonates with people. And the UX design to convey and spread that story is conceived together with the product.
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BRANCHÉ CHOCOLAT, known as the "#Square of Bliss," features a lineup including "Matcha," "Japanese Chestnut," and "Milk." As Izumi envisioned from the start, its distinctive shape and texture have contributed to widespread visual recognition as "that green square dessert you see a lot on Instagram lately."

What is "UIGC" that engages users and influencers?

In the previous article, we explained "influencer-driven social media outreach" as an essential promotional tactic for D2C Inc. brands.

Since D2C Inc. brands primarily use SNS as their main battlefield for expanding awareness, collaboration between user communities and influencers is essential. Influencers who continuously attract fans who "relate" to their worldview play a crucial role as intermediaries for D2C Inc. brands seeking to gather consumers' "relatability."

Here are several key points to keep in mind for generating user empathy on social media.

① "UIGC" (User and Influencer Generated Content)

As you can see from BRANCHÉ CHOCOLAT's official social media accounts, we strive to operate our social media by involving users broadly (influencers and general users).

Specifically, many of the photos featured on BRANCHÉ CHOCOLAT's Instagram account are user-submitted images that we have individually obtained permission to use.

While such user-created content is typically called UGC (User Generated Content), we use the term UIGC (User and Influencer Generated Content) because it encompasses both users and influencers.

UIGC (User and Influencer Generated Content)

.

By actively featuring user and influencer posts on our official account, we can more easily expand the circle of "empathy."

② "Affinity between the brand's and influencer's worldviews"

Since D2C Inc. brands rely on resonance with their stories and worldviews, the affinity between the "brand's worldview" and the "influencer's worldview" is crucial.

Influencers who aspire to a lifestyle matching the brand's worldview will naturally generate more passionate posts. Since fans follow them because they resonate with that lifestyle, they are highly likely to develop a fondness for the brand as well.

In the case of BRANCHÉ CHOCOLAT, as a premium confectionery brand meticulously focused on "excellent ingredients from across Japan," it has grown into a brand beloved by influencers who demonstrate a strong commitment to lifestyle.

The crucial factor is matching the brand's worldview with the influencer. Simply casting influential influencers or requesting promotions from many influencers won't work if they don't align with the brand's worldview.

Even if their posts lead to purchases, if there's a gap between the post and the actual product or user experience, repeat purchases are unlikely.

③ "Trust with Users and Brand Transparency"

D2C Inc. brands are judged on their trust with users and transparency. For example, a gap between creative assets like product photos and websites and the actual product is unacceptable.

We are, of course, extremely particular about photo quality, but we also take care to ensure the finished product doesn't look too different from the actual item. "The impression of the product seen on the site differs from the actual product received" damages trust with users ( ).

Involving influencers from the development stage increases the probability of success

Moving forward, we'll introduce an advanced approach: "product development involving influencers."

Even in standard product development, you might conduct user surveys or depth interviews beforehand. For D2C Inc. brands, going beyond surveys and interviews to actually "develop products together with influencers" is highly effective.

The key point here is that it's not just about hiring celebrities for promotional effect; you must hire influencers who are active at the forefront of "that field."

Why? Because influencers strong in that specific field (in this case, gourmet food) have a gut feel for trends like "What kind of sweets will go viral on social media?" They can also provide genuine feedback from the perspective of someone who will share the content, such as "What kind of product would make me want to post about it?" This real insight can be directly incorporated into the development process.

Furthermore, collaborating on development helps influencers feel personally invested in the brand, increasing the likelihood of passionate posts after launch.

For BRANCHÉ CHOCOLAT, we collaborated in advance with gourmet influencers and professional culinary influencers,

• Recent dessert trends
• flavors
• texture
• box design
• sweets shape
• Appearance of the cross-section when cut

We advanced product development through detailed discussions covering all these aspects.

For example, the "Japanese Chestnut Carré au Chocolat" uses "Ginoyori" chestnuts (from Nose Town, Osaka), renowned as Japan's largest and often called "phantom chestnuts" due to their limited production. During this product development, gourmet influencers advised:

"For the best cross-section photos, we should use a whole large chestnut."

"Since chestnut sweets are synonymous with Mont Blanc, we'd like to incorporate Mont Blanc-like elements for visual appeal."

"Many dislike the gritty texture left on the palate from chestnuts or sweet potatoes, so a smoother mouthfeel is preferable."

We designed the product by discussing what ingredients to include, incorporating these opinions from both "eating professionals" and "making professionals."

"Japanese Chestnut Carré au Chocolat." While insisting on the finest ingredients, we also prioritized elements that influencers would "instinctively want to photograph" and "instinctively want to share."

We wanted BRANCHÉ CHOCOLAT to transcend fleeting buzz,

• but to be continuously shared,
• and that everyone who tastes it will spread the word further.

is the result of receiving advice from influencers with immense credibility in the sweets field, and repeatedly experimenting until we created something that satisfied them.

Ultimately, the source of resonance is "something inherently good, something truly exceptional."

So far, we've explained various aspects of product development and communication methods in D2C Inc. business that generate consumer empathy. However, if we were to sum it up in one phrase, it boils down to this: "Create something inherently good." That's all there is to it.

You might think, "That's it?" But if it isn't fundamentally good, consumers won't go out of their way to pay high shipping costs to purchase it. It's crucial not to simply pocket the surplus profits generated by bypassing distribution channels, but to think about "ways to give back to the user."

For example, demand the highest quality and UX for the product itself. Consider everything from website design and packaging to the customer's emotional response the moment they open the box. Pursue perfection relentlessly, never compromise, and deliver a consistent brand worldview.

Of course, beyond using saved costs for better materials and quality, another way to return profits is by "lowering prices." Indeed, influencers who favor posting "budget-friendly products" on social media exist and have large followings. However, even here, it's not just about being cheap; it's crucial to be "affordable and good."

Creating something inherently good. Ultimately, this is the first step in building a D2C Inc. brand that resonates and the very source of that resonance.

And another key insight for D2C Inc. business success, drawn from the BRANCHÉ CHOCOLAT case study:

• Focus on one breakthrough point and create a truly distinctive product.

Digital marketing, including social media promotions, offers the major advantage of efficiently targeting specific audiences.

Digital marketing, including social media promotion, has the major strength of allowing you to narrow your target and approach them efficiently. Even if it doesn't appeal to everyone, a product that strongly resonates with a "specific segment" has a solid path to success. Naturally, influencer selection is also key to spreading that "empathy" in this case.

Another strategy is to fully commit to niche products with no direct competition. Conversely, "all-target" products are generally unsuitable for D2C Inc. unless you're a company with massive capital.

BRANCHÉ CHOCOLAT is a premium chocolate brand targeting the ultra-high-end market, far surpassing the prices of foreign luxury chocolate brands from Switzerland, Belgium, France, and elsewhere. The very concept of "ultra-luxury chocolate confections" inherently narrows the target audience. Moreover, its commitment to ingredients and meticulous attention to detail is unmatched, making it a distinctly "edgy" project.

Finally, let's summarize the key points of the D2C Inc. brands featured here that foster empathy.

• Start product development with a story-first approach
• Involve influencers in product development
• Create something inherently good or something edgy that resonates with a specific audience

If you're starting a D2C Inc. business or already running one but struggling, definitely try incorporating these points.

Amidst the current state of emergency declarations across regions, BRANCHÉ CHOCOLAT is running its "#SendItHome" campaign for Valentine's Day 2021.
https://branche-chocolat.jp/blogs/journal/valentinesday_3buy