E-commerce goes D2C: the trend of direct sales
Covid-19 had an impact on pretty much all areas of society and unexpectedly made 2020 a record year for online retail. What developments will shape e-commerce in 2021?
One of the big buzzwords in the current year is D2C - Direct to Customer. It describes a development that some big brands already initiated years ago: More and more well-known manufacturers are skipping the trade and marketing their products directly to fans and friends of their goods.
By foregoing the intermediate step of traditional retail, brands willingly take on an additional expense in marketing, distribution and logistics that should not be underestimated. The margin that retailers could otherwise book as profit for themselves is not the only benefit that large companies derive from this marketing strategy.
Effective brand loyalty through direct contactOne of the best-known and most successful examples of the development of its own exclusive sales channels beyond the traditional retail channels is the sporting goods manufacturer Nike. With its offer around Nike By You (originally introduced as NikeID), it offers the unique possibility to purchase individualised shoe models directly from the manufacturer.
With this offer, the brand stands out in D2C distribution from all other distribution channels that could never do the same. Customers are already much closer to the brand during the buying process and experience a much stronger brand loyalty: The possibility of adding an individual touch to a shoe that exists in millions of copies worldwide and making it the only one of its kind cleverly serves the customers' need to visibly present themselves as an individual with a very specific lifestyle.
Through exclusive editions, clothing, electronics and food companies in particular not only successfully bind customers and actively strengthen their brand image, they also avoid the price war that takes place in stationary and online retail. D2C, the price becomes an additional commitment to the brand.
Buying online does not exclude proximity
Empty pedestrian zones and shops that will be closed for the foreseeable future are steadily reducing the importance of offline retail. Market your products and services yourself and benefit from the effects of direct customer loyalty. No matter whether you want to start in online retail or expand it professionally, we advise you on all aspects of strategy, marketing and technology that will make you a successful D2C marketer.