When retailing started, the distributors were gods of the game. They were in control of which products to be sold and which to be refrained from selling. Their idea of an ideal product was ‘if the product can be sold in mass quantities then it’s a successful product’. This idealogy lead to distributors being the price-makers of the market, they could set prices as high as they wished.
See, in this situation buyers and manufacturers were kind of a prisoner to the leadership of distributors. Things had started getting better when mail catalogue was discovered and it gave the consumers some sense of independence. However, the internet made things a whole lot better.
Ever since the internet was discovered, it has changed the way market works. Today, the consumer is the king and everybody else just obeys the expectations of the king. In the current market, consumers have high expectations from brands to build products that match their lifestyle.
This expectation has made brands highly consumer-centric, which is a good thing, for consumers. A recent trend in the market has been direct-to-consumers.
What is D2C?
D2C (direct to consumer) is a new type of supply chain where the manufacturers directly sell to the consumers. Usually, in the supply chain, there are other parties in between the distributor and the consumer but the D2C trend has removed the other parties.
It is quite evident that e-commerce has become so powerful that consumers have developed utter confidence in it over brick and mortars which clearly wasn’t the case a decade ago.
Why is D2C trend getting the attention?
The modern age consumers are not looking to buy products but a lifestyle. A brand that can convince the audience that they sell values and not just tangible goods, has the potential to make it to the top.
We have seen brands in a cut-throat competition for decades over sending a meaningful message to its customers. There have been billboard wars, print media wars,
The massive inclination for e-commerce among consumers has lead businesses to adapt to the direct-to-consumer model.
Can businesses succeed with D2C model?
The most appropriate way to answer this question is to look at businesses that have succeeded in using the D2C model. The good thing is that there are many businesses that are acing the D2C model and have been able to create a solid relationship with their customers.
Recently, Kraft Heinz launched Heinz to Home. It’s direct to consumer channel that offers pre-packed food to customers. These include ready to eat spaghetti, soups, sauces and condiments, pasta, and beans.
Other famous Indian brands Beardo, BoAt, Mama Earth, etc. These brands targetted their customers directly and made their mark. Customers felt a sense of personal touch when they were in contact with the brands directly and this helped the brands form credibility.
Insightful
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