Introduction
D2C stands for direct to customer and it simply means when a brand sells directly to its end customers, eliminating retailers. D2C can work in any industry,and in more recent times more and more brands are pivoting towards the D2C model to reach out to their end customers directly. D2C brands use models such as online stores, applications, their own retail stores and even factory outlets to sell their products.
D2C packaging
Most D2C companies use cardboard boxes to deliver their products,and the importance of this type of packaging is:
- Selling in branded boxes increases the premium feel of the brand
- Cardboard is light and helps save on shipping
- Cardboard gives a wide variety of printing and package options
- It can be ordered in bulk thereby reducing cost
Importantce of D2C
Cost effective supply chain
By eliminating middlemen and retailers operation cots will be reduced. The brands can also save on the commissions that wholesalers, distributors and retailers take. This will increase the profit margin and achieve a cost effective supply chain
Strong customer relations
By selling directly to their customers brands have a chance to interact with their customers. Brands can then easily collect customer data and thereby create a strong relationship with said customers. With the help of these insight brands can:
- Target the right customers with relevant offer
- Provide a personalized customer experience
- Improve their products features based on customer requirements
Smooth and efficient logistics
By having full control of operations brands are able to have efficient logistics. After receiving their orders online they can then provide the best delivery option and they can also use their own logistics or partner with a third party logistics provider.
You can sell your brand story not just a price
When a potential customer comes to your website, you have their full attention and focus, and you can tell your story and also showcase all of the unique attributes of your product.
More opportunities to innovate
Most reatailers have a certain standard that they follow when selling. And they usually shy away from selling new products so manufacturers are now limited to producing just what the retailers want. But as a D2C brand you can launch new products at a smaller scale, test them with particular set of people and get feeeback. With this manufacturers can understand their customers and make improvements where needed.
Conclusion
Adopting a D2C business model is beneficial from both a financial and operational standpoint. It is very important that the model is consistent in delivering what consumers demand.