Direct-to-consumer (D2C) commerce is not a new concept for branded manufacturers, but there is certainly renewed interest and more options to choose from. With consumers ever more digitally connected, branded manufacturers are enticed by direct digital commerce benefits, like better sales margins, increased product control, and richer customer relationships.
A new Q&A report explores questions that digital business professionals, with a focus on or interest in branded manufacturing, frequently ask about developing or re-evaluating their D2C strategies. Including:
- Why should branded manufacturers enable direct-to-consumer eCommerce?
- Won’t direct selling adversely affect branded manufacturers’ retail partner relationships?
- And What are the various possible approaches to D2C sales for brands?
Key takeaways from the report are:
Digital Commerce Strategies Are Not Just About Selling Direct. Not all branded manufacturers should go for full D2C eCommerce, but all must build direct relationships and break down barriers to purchase.
The Value Of Digital Commerce Goes Beyond Direct Sales Revenue And Margin Gains. Traditionally one step removed from the end consumer, branded manufacturers pursue D2C initiatives for the value of direct consumer insight and relationships, rather than the initial revenue gains. A branded manufacturer’s own website and digital presence do not have to be transactional to have an influence on sales. Many branded manufacturers use their digital presence as a platform to test, measure, and refine product and brand decisions.
Digital Commerce Strategies Do Not Have To Be At Odds With Retail Partner Relationships. Conflict with traditional retail partners can be a concern for many brands, preventing them from developing and maturing a direct digital presence and commerce capabilities. But even brands with serious channel conflict concerns have successfully managed retail partner relationships alongside D2C commerce initiatives by being transparent and clearly communicating noncompetitive objectives.