The difference with D2C is that all contact is Direct To Consumer — in free translation: direct to the consumer, that is, without intermediaries.
In practice, the D2C business model has shown promise, mainly due to the expansion of the target audience for sales.
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A survey published in Revista Varejo Brasil revealed that D2C e-commerce increased its revenue by 21% between March 12 and 15, 2023. This demonstrates how promising the D2C market is for those who aim to be more successful in the business world, especially on the internet!
If you have a company and want to know more about the D2C strategy, how this concept works in practice, what the advantages are and examples of success, you've come to the right place.
The EAD Plataforma team has prepared a guide on D2C, so you can understand:
what is D2C;
D2C business model;
how to set up a D2C strategy;
examples of D2C companies.
Interested? Enjoy reading!
What is D2C?
D2C or Direct To Consumer is a business model that sells directly to consumers. In this way, all stages related to marketing and sales are in the hands of the product manufacturer. In other words, the D2C concept is structured on the direct relationship between manufacturers and end consumers.
In practice, manufacturers are responsible for manufacturing the product and the entire sales strategy , such as creating e-commerce sites, as well as the integrated organization of distribution centers and sales inventory.
In short, D2C is a model that does away with intermediary sellers. This means that the relationship with the consumer is closer, and the manufacturer does not have a direct dependence on retailers and third parties.
Now that you know what D2C is, let's look at some examples that illustrate how D2C works in the market.
The D2C business model and the market
The industry is betting on the D2C business model to increase profits in the current market. The advantages of the D2C model are:
pricing is decided by the traders themselves, in retail and wholesale;
delivery of products is the responsibility of the reseller;
If there is any problem with customer service, the reputation of the industry is tarnished.
If a consumer purchases a product from a fraudulent website and suffers losses, a negative experience with the brand is a consequence.
In other words, given so many possible problems, betting on the D2C business model can avoid a lot of headaches, as the industry will have greater clarity about all the processes involved in commercial transactions.
This strategy includes monitoring the work of the operation responsible for manufacturing the product and monitoring the experience shared by the consumer with the after-sales team, for example.
The standardization of the quality of these processes is a reality closer to the brand, which now has central control of all strategies when it assumes a D2C stance in the market.
Furthermore, profit increases, as 100% of it goes back to the retail email list manufacturing company.
A company that currently works with the D2C business model is the manufacturer Samsung.
You might be wondering: but how, if Samsung cell phones and computers are for sale on sites like Amazon?
In fact, there is no 100% change to D2C, but Samsung has an official e-commerce and several physical stores in the 27 states of Brazil.
All official brand stores work based on a global code of conduct called Samsung Business Principles.
Furthermore, the brand has its own guidelines for commercial conduct for all employees and has exclusive channels that allow consumers to evaluate, as well as make complaints and reports.
The guarantees are much higher compared to resellers who do not operate within a D2C quality standard. And this is the main difference of the D2C business model.
Samsung's direct sales channels also allow the manufacturer to have more freedom to charge real market prices, which is an advantage over other retailers.
How to build a successful D2C strategy?
Building a successful D2C strategy is quite a challenge, as the responsibilities increase if you are a manufacturing company.
However, there are advantages that make this plan very successful.
Before starting any transition, you need to be cautious, know how to analyze market conditions and understand your company's scenario and goals.
