COVID-19 has drastically changed the way we live our lives, including how we shop. More people are turning to eCommerce instead of going to brick-and-mortar locations. This has sparked a new growing trend of direct to consumer (DTC) commerce. This type of commerce involves the process of the manufacturer selling directly to the end consumer.
To understand just how much this trend is growing, eCommerce is expected to account for 6.6% of all consumer packaged goods sales, and the DTC movement accounts for 40% of the sales growth in this sector. This means the DTC industry is not going to die down anytime soon. Customers increasingly want brand loyalty and accessibility, and DTC provides both of these.
Why Would a Brand Choose the DTC model?
There are many reasons why brands would want to adopt the DTC model. With COVID-19 wreaking havoc on supply chains, companies realize that by taking a DTC approach, there is less of a supply chain that can be exposed to problems.
While retailers in the past have been part of brand awareness and acquisition strategy, many businesses found the effort it takes to manage these different distribution channels outweighed the benefits. These stores are in complete control over where products are placed in their location. While this may sound like a small difference, it could have a huge impact on sales when continuously placed on a shelf that is not at eye level.
Customers no longer want to rely solely on the stores to put the products out in the right places for the right people or for the local sales reps to be educated about it. They want the convenience of going directly to the brand to purchase the product.
Taking Ownership of Customers
One of the most important upsides of going direct to consumer is taking ownership of the most important asset: the customers. By going DTC, companies can now manage how they interact with their customers. They can reach out to them directly about promotions or new products, unlike if the consumer had bought the item through a retailer. Selling DTC gives a business control over the entire customer journey. This starts from the moment someone lands on a website until the product is delivered.
Another reason for going DTC is that a customer is able to connect with more products, whereas some retailers may not always have every item in stock. The customer is able to communicate with a brand whenever they want, throughout their day, and on their terms. Brands can then proactively connect with their customers through push notifications, email, and so on.
This will ultimately help to build brand loyalty. Consumers now show that they want to get to know the brands they buy from and feel as though they are appreciated as a customer. By connecting directly with consumers, a brand can build a relationship that they would otherwise not have the opportunity to do so through a retailer.
Now Is the Time
There has never been a better time to sell your products direct to consumer and reach a whole new target market. The challenge is, many large corporations don’t know what to do or how even to start. If you are a business thinking of going direct to consumer, contact us today to learn how we can help integrate DTC with your B2B website. When selling direct to consumer you want to keep your message consistent while staying on brand.
We are here to help! Contact us today to learn how we can help take your business direct to consumer.