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Going Direct to Customers with Direct-to-consumer (D2C) e-Commerce Strategy

A D2C eCommerce strategy is the new normal for retail brands and why it should be a part of brands’ business strategy after COVID-19.
eCommerce Website Development Services | Binmile

The shopping habits of online consumers have changed drastically since the global COVID-19 crisis came into existence. Nowadays, people are hinging on frictionless digital and low-touch experiences. e-Commerce grew by 25% globally in the year of the pandemic in 2020, according to global data research firm Statista. The shift to online shopping has eased the growth of new e-commerce trends, including the direct-to-consumer (DTC) or (D2C) model. It seems people have got accustomed to new shopping behaviors. According to Invesco, an independent investment management company, more than 50% of consumers prefer to visit D2C brand websites for more comprehensive information and guides. Read here more about how D2C eCommerce strategy is the new normal and why brands should embrace the direct-to-consumer strategy as a part of their business and marketing strategy.

The D2C is the New Normal

Direct-to-consumer (D2C) is an e-commerce strategy that directly sells your products to consumers via digital social media platforms and websites. This strategy gives you complete control over product manufacturing, marketing, and distribution. Look at some of the prime advantages of adopting a D2C approach.

An Omni-channel Experience

A significant benefit of employing a D2C eCommerce strategy is that product manufacturers efficiently control all their activities. It lets them create an omnichannel experience for their end consumers.

More Control Over Brand Reputation

A traditional retailer business model gives manufacturers little control over their products. On the other hand, a D2C eCommerce strategy offers manufacturers complete control over their sales strategies and marketing efforts. The strategy enables the company to contact the end-consumer directly. With this strategy, a manufacturer gets the most of its customers’ experience–from the research phase to purchase.

Truly Understanding Your Customers

The traditional business model used by manufacturers rarely lets them interact with their targeted audience and product buyers. The D2C marketing strategy allows the manufacturer to know their end-consumers and understands their needs thoroughly. It leads to better engagement with customers.

Drive Efficient Growth

The DTC retail strategy is a key source of achieving a competitive advantage. It also lets the manufacturer grab an opportunity by adopting modern technologies to improve operational efficiency with agility.

A Sense of Community

Embracing a D2C business model lets you get valuable buyers’ data that enable you to take balanced decisions on customer behavior, relationship, and product offerings. It was not possible with traditional e-commerce stores. Data-driven insights are helpful for having personalized brand experiences.

Why Drive D2C’s Success?

Brands rely on data and analytics to get a complete picture of their customers and better personalize shopping experiences. A thorough analysis lets brands make more informed decisions concerning operational improvement.

“The D2C model gives the brand the opportunity to collect first-party data on their customers. And with this data, the possibilities are endless—brands can customize products. They can create new products, all with the customer in mind,” says Cindy Liu, director at Insider Intelligence.

D2C companies favor the D2C strategy as a beneficial tool. French personal care company L’Oréal has leveraged D2C to personalize its beauty products and experiences. L’Oreal launched a D2C offering titled ‘Color and Co’. This offering helped consumers get personalized hair dye kits via live online consultations from professionals. With this, consumers could easily order a customized product that would be delivered in their footsteps.”

Like brand identity, data and analytics are also other components of D2C’s success. “Brands leveraging a D2C model are able to easily control their messaging and the way their products are presented. This, in turn, lets them own the entire customer relationship and increases the likelihood of customer retention,” adds Liu.

Brands leverage D2C models to improve margins, eliminate intermediaries, gain control, and reduce distribution costs. Nike ran a D2C sales program for selling products online to consumers directly. The American MNC Nike saw record-high sales during Black Friday. The move helped the company witness saw its digital sales increase by 84%.

Jeremy Goldman, an eMarketer principal analyst at Insider Intelligence, says, “An increasing number of brands are finding that investing in D2C models pays huge dividends. It also has the potential to be more profitable. It also promises to be a more consistent revenue stream than going through retailers that might be upended by the next pandemic-style black swan event. The D2C models inherently lend themselves to knowing the customer the best, which makes it far easier to provide the superior customer experience that today’s consumers demand.”

PepsiCo has also opted for the D2C model to get engaged with consumers directly.

Binmile Tech Help for a D2C Strategy

The post-COVID-19 world has changed a lot. e-Commerce has seen success through online Direct-to-customer strategies. Due to supply-chain troubles and closed physical retail outlets, D2C has emerged as a fundamental approach for retail businesses rather than an opportunity.

As an expert and professional in this space, Binmile helps businesses achieve a post-COVID-19 growth retail landscape through eCommerce tech stack selection. The company knows how to execute a D2C retail strategy through ecommerce website development services. We let you respond to the crisis, stay ahead of the competition, and resolve the crisis by employing a D2C strategy with digital transformation touch.

Get a competitive edge with a D2C marketing strategy from Binmile experts.

Author
Binmile Technologies
Arun Kumar Sharma
AVP - Technology

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