Emarketer: How D2C Brands...

Emarketer: How D2C Brands Are Disrupting the Retail Industry

Dec 29, 2021

(Image Source: EPAM)

While direct-to-consumer (D2C) was once confined only to digitally native brands without a storefront, it has now evolved into a business model comprising bigger brands like Nike and Clorox. As reported by eMarketer, the US D2C market is flourishing, and sales are expected to rise by 16.9% by 2022 thanks to their efforts in diversifying customer experiences. 

Here is how D2C brands are establishing their set of advantages: 

Intentional Marketing

While it is costly to attract new customers, the D2C business model gives marketers greater control of each product’s promotion. D2C companies can achieve success by tailoring their marketing campaigns to focus on customers instead of the generated revenue.

Unique, Quality Products

With so much competition in the market, brands can find it difficult to convince customers that their offerings are unique. This is why Ricky Joshi, Co-founder and Chief Strategy Officer at Saatva strongly believes that D2C businesses should altogether skip the “glitz and glam” to cut the intermediary costs. After all, nothing is more important than “sticking to the value proposition and the philosophy of the company.”

Effective Conversion

The key to e-commerce sales is the ability to convert “add to cart” to “proceed to checkout”. They should also focus on things like website archiving, better design, and other technical aspects. Each D2C has found creative approaches to solve this key problem. Their solutions range from limiting personalization to setting up partnerships with e-commerce marketplaces such as Shopify to streamline checkout.

Catch Up With Consumers’ Needs

In order to stay competitive in the retail industry, many DTC companies have adapted to the changing needs of consumers. While some have chosen to work with traditional marketplaces like Target and Walmart to sell products, others have opted to open their own offline stores to boost loyalty or expand beyond their initial hero offerings.

Source:  How D2C brands are diversifying consumer experience to disrupt the retail industry

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