Branding Directly to Consumers: It’s not as hard as you think.


August 19, 2021
5 MIN READ
Vinculum
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Direct-to-consumer marketing is gaining the attention of global brands. Consumers can now buy directly from the manufacturers. This model removes the middlemen that could eat into your profit margins.

U.S. DTC e-commerce sales reached $111.5 billion in 2020. As we prepare for the post-pandemic era, this number is projected to increase. The brands Warby Parker and Dollar Shave Club are examples of successful direct-to-consumer brands!

Direct-to-consumer sales allow you to offer products at the lowest price possible to consumers while still making a profit. Removing mediators and direct sales to consumers will enable brands to offer their products at a more competitive price, thus making them more available.

What Does Going Direct to Consumer Mean?

Our social lives and even our shopping habits have changed since the advent of the internet. As a result of the unfortunate circumstances of last year, e-commerce platforms have been mass adopted as a necessity. E-commerce is gaining traction across the world as consumers become accustomed to its convenience. After the world has recovered from this pandemic, that is unlikely to change.

The DTC eCommerce market grew three to six times faster than eCommerce sales overall from 2016 to 2019. Consumers can afford to buy products at much lower prices when brands take advantage of this growing adoption. Distributing a product without go-betweens reduces distribution costs considerably. It will allow your business to become more efficient and grow exponentially.

As a direct-to-consumer brand, you need to put more energy into marketing than just manufacturing. Additionally, you can market and support your products the way you please. Success comes from being prepared. You can generate significant demand for your products by choosing the proper channels and tools to market them.

Digital marketing offers a myriad of options today. To maximize conversions, you need to create disruptive promotions that compete with direct consumer’s higher profit margins and not be matched by your competitors.

Why is Going Direct to Consumer Important?

In every industry, direct to consumer is becoming a common strategy for brands due to the competitive nature of this model. In the future, first-movers will most likely hold the advantage. Consumers and brands can have a new dynamic when going direct-to-consumer.

We are closer than ever, thanks to the internet. With direct sales to end-users, you open a channel of direct communication with them. Taking advantage of this connection with consumers can help brands improve their social media presence. The direct-to-consumer model will prove beneficial to brands formerly dependent on distributors and other intermediaries.

Take control of your marketing and merchandising so that your products are positioned how you want and not how mass retailers’ catalogs allow.

Brands that can Reach Consumers Directly

Fashion brands, electronics manufacturers, FMCG, and confectionery brands have the best chances of succeeding with the direct-to-consumer model. By eliminating collectives and auction houses, this model can also benefit highly customized products and commissioned art.

How to Make Your Brand D2C?

The internet is the most effective way to bring your brand directly to consumers. With the internet, you can leverage your brand to its fullest potential and reach a worldwide audience. Nowadays, it is easy to set up a direct-to-consumer business platform. It is possible to design and launch a platform without coding knowledge through several tools available on the market. To ensure seamless design consistency, make sure that the design language matches your brand.

Analytics for Direct-to-Consumer Success

Monitoring your profitability and performance is part of running a business. Your switch to a direct-to-consumer business model will maximize profitability.

The dashboard of your store management tool will provide an overview of your business’ performance. It should be designed to be user-friendly and to offer insight at a glance without being cluttered.

A mobile app should also be part of the store management suite so that you can manage your store on the go. You can take advantage of the insights and analytics it provides to make strategic decisions. By having real-time data at your fingertips at all times, you can have complete control of your business.

Conclusion

In the wake of the pandemic, the direct-to-consumer model has taken the world by storm. Over the next few months and years, people will be motivated to spend and stimulate the economy. Make improvements to your distribution model at this time to make your business more profitable.

By adopting this model sooner, brands will be a step ahead of their competition and have already established a presence online while their competition is scrambling. You can scale up your business faster if you use the direct-to-consumer model.

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