The D2C (sale direct to consumers) enables brands to market their products directly to end customersThis means we can offer our customers a wide range of products and services, without going through intermediaries such as distributors or physical points of sale.
D2C's prime targets
The D2C meets the expectations of certain target groups:
- The Millenials and the Gen ZYoung users of digital tools looking for easy omnichannel shopping experiences.
- Residents of major citiesThese are people who are used to home deliveries and new services.
- The early adoptersThey are eager to discover new trends and innovations.
The advantages of the D2C model
Adopting D2C offers many advantages to brands:
1. Improved margins
By cutting out the middleman, brands recover part of their margins usually taken by distribution.
This translates into :
- A optimised brand experience
- From higher direct margins
- A higher profitability
2. An optimised brand experience
With D2C, brands control the entire customer journeyfrom product to delivery. The experience is perfectly aligned with their positioning and image.
3. In-depth customer relations
The DTC enables brands to collect a large number of customer data and to introduce a ongoing dialogue by email, by chat or via social networks.
These more instantaneous interactions enable them to be more responsive and, ultimately, closer to their customers.
The challenges of the D2C model
D2C also involves a number of challenges:
1. Optimising the supply chain
End-to-end logistics management involves significant costs and a complex organisation: stock management, order preparation, transport and delivery.
Brands need to deliver quality service to customers quickly, while optimising every link in the supply chain to control operating costs and guarantee profitability.
2. Implementing an effective acquisition strategy
In the absence of intermediaries, D2C brands must rely on various digital levers: search engine optimisation, display, social networks, emailings, influencers, etc.
Analytics help to optimise these digital campaigns.
A well thought-out acquisition strategy, focused on lead generation and the conversionThis is essential for building an engaged audience and developing recurring revenues.
3. Establish a climate of trust
In the absence of direct physical interaction with customers, building trust online is crucial in this sales model.
Brands need to invest in transparency by being able to guarantee that their products are security payments and personal data.
They also need to rely on authentic reviews and testimonials to build a solid reputation and engage customers.
4. Always be different!
D2C intensifies head-to-head competition between brands in a given market.
Without distributors, differentiation on price, quality and shopping experience is essential to stand out from the crowd.
Brands need to create unique value propositions, whether in terms of quality, personalisation, sustainability, customer service or overall experience.
