Establishing a D2C offering can provide brands with better sales margins, increased product control, richer consumer insights and strengthen their customer relationships.
3For a very long time, cars have been sold through a traditional model where manufacturers sell to dealerships who then turn around and sell to consumers. FMCG brands within retail have long used a similar model for getting their products into the hands of consumers.
While there’s a lot of difference between a new vehicle and a bag of M&M’s, one thing both industries have in common is a focus on creating successful direct to consumer (D2C) strategies. The need to shift into servicing clients directly isn’t new, but it has accelerated in recent years.
Establishing a D2C offering can provide brands with better sales margins, increased product control, richer consumer insights and strengthen their customer relationships. The long-term strategic importance is obvious, adding your own distribution channel opens the door for changes in the power balance and creates more data touchpoints from which to improve products and services.
But even in the short-term, the effects of controlling first-party data can be seen and the benefits of such control immediately realized.
There are a lot of reasons why now is the time for this: / Customers are asking for it—As digital continues to shift and change, customer expectations continue to change as well. Given that more flexibility in their ordering is something that customers want, improving your D2C strategy is the best way to give it to them. / D2C only brands find success through new engagement methods—While they aren’t the only example, Bolon Eyewear is a good place to start looking at the evidence of this. / An increased need for personalization—Customers expect more personalization, and FMCG brands need to take control of their first-party data in order to provide personalized experiences and unified communication.
Decreased sales dependence on Retailers—Moving away from being exclusively dependent on retailers for sales success into a more balanced approach is something FMCG brands should be focused on.
Luckily, creating a very succesful D2C strategy has never been more accessible. In this paper, we want to take the time to outline the four elements of a successful D2C Roadmap and to give you insights into the steps being taken by the brands leading the D2C revolution."
