What is the D2C model?
June 19, 2022Although it is a late delivery model, D2C (Direct to Customer) has a remarkable growth rate in the e-commerce market. Businesses that have implemented this model have received many unexpected results when they both saved operating costs, sharply increased revenue, and increased brand recognition in just a short time. So what model is this? Let’s find out together!
What is the CDC model?
D2C stands for Direct to customer, this is a form of direct sales from manufacturers to consumers through a website or genuine store. For this form, businesses do not have to go through any intermediaries such as agents, distributors, retail stores, etc.
D2C is considered a cost-optimizing model and offers many opportunities for businesses to establish and build good relationships with their target and potential customers.
Before the pandemic, this was not yet a common trend. In 2020, however, many physical stores were forced to close, forcing consumers to switch to online shopping and start buying directly from their favorite brands.
Why you should apply the D2C model
Profits are not affected by intermediaries
Your product goes directly to the customer without the need for a middleman (retailer) which means your profits are your own. You don’t have to cut your profits to maintain a complex network of resellers, and eliminating third-party interactions means you’ll make more money.
This model keeps you from cutting your profits to maintain a complex system of agents. Instead, they invested in building an online platform to sell their products to consumers.
Improve customer relationship
One of the benefits that the D2C model brings is to help businesses master the product supply chain: to produce, operate and distribute products to consumers, to help brands control quality and service when the product reaches the user. Through direct experiences with consumers, brands will help brands establish and maintain good relationships with customers, enhance their reputation, and promptly make changes to match trends and consumer tastes. new use.
Ultimate control over pricing, marketing and branding
In the traditional retail model, the manufacturer has no direct contact with consumers and only delivers products to retailers. However, the D2C model allows brands to interact directly with consumers, giving them direct contact with their customers.
So you manage how customers interact with your brand and handle every aspect of the customer experience. It allows you to meet the needs of your target consumers, influence how they interact with you, and most importantly, build relationships.
D2C as a market research channel
The D2C model is considered a safe test option, especially for businesses doing business in the consumer goods industry (FMCG). Instead of having to research the market, produce and launch new products, with D2C, businesses can easily evaluate the effectiveness of their marketing campaigns and the potential of new products thanks to the amount of information that can be proactive. complete control. From there, a more correct product development strategy will be given to agents and retail systems.
Get specific information about consumer needs and buying behavior
With the D2C model you are in complete control of all distribution and production steps. So that you can directly collect a huge amount of data about the customer persona of your business.
How to apply the D2C . model
Not all brands can apply the D2C model and are highly effective because this model, if applied incorrectly, will easily cause conflicts with existing intermediary sales channels. To limit those risks, businesses should clearly determine which product lines will be suitable for the D2C model or classify customer segments that are suitable for this model.
The most important thing is to design and develop a sales website for your business, because this is the channel where you directly reach customers. You can find yourself a website design and development unit to advise you on layout, functions, …
Besides, to have a strong foothold in the D2C world, businesses need to focus a lot on implementing Marketing.
To apply D2C, you need a sales website
If you are in need of advice and implementation on website design and development, marketing campaigns? Please contact TekLabs
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