Direct-to-consumer (D2C) e-commerce currently presents the best opportunity for innovative brands to build direct relationships with their customers. D2C refers to the practice of selling a product directly to the consumer via a company’s own web store, thus bypassing third-party retailers or wholesalers. For companies, building D2C e-commerce capabilities allows to directly interact with end-consumers, which helps steer brand strategy and innovation based on real-time consumer insights. These insights can help a company answer consumer needs directly, thereby maximizing both consumers’ commitment to the brand and their lifetime value. In the competitive landscape, D2C can act as a defensive measure in the long term, but also allows for immediate share gain: it means the company is less reliant on e-giants like Amazon and Rakuten, and creates an opportunity to capture a larger part of the growing online market.
Direct to consumer (D2C or DTC) has seen a massive surge since the advent of the pandemic, as brands who didn’t embrace D2C e-commerce were caught scrambling to adapt. From CPG to wholesale to automotive and more, every industry is now paying attention, hoping to better engage customers and deliver what they want.
Subscriptions are a popular D2C item, and social selling via platforms like Instagram, Pinterest, Facebook, Snapchat, etc. are popular platforms for direct to consumer sales. DTC business models are being adopted by consumer brands that are hoping to improve their bottom lines with a direct-to-consumer (D2C) strategy, including:
1. Direct sales
2. D2C with redirection to the channel
4. Social commerce
5. D2C with retailer support