Since online shopping is extending across the globe, it becomes imperative for the brand to work on providing the utmost satisfaction to its customers. During the pandemic, eCommerce has garnered much attention and given rise to the D2C line of business.
The acronym is used to describe the direct-to-consumer brand. This process is viewed as an alternative for B2B and B2C businesses. Firstly, let’s get into what D2C exactly is. In the direct-to-consumer set-up, the brand sells the products directly to consumers without any intermediaries. The middlemen automatically jump out of the scenario, leaving more space for direct communication, and an enhanced understanding of the new customers.
The brand has full control over manufacturing, managing inventory, and delivering the end product to the consumer whenever an order is placed. D2C brands take full charge without any third-party involvement. The products are sold online through the brand’s own website, and some of them are also listed across several eCommerce platforms under required categories.
Consumers are becoming more digitally literate and choose to shop online or offline (if possible) at their own convenience. Nike, Open Sea, and Fitbit are a few examples of the leading D2C brands in their respective categories. Moreover, Amazon has several D2C brands listed on the platform, and the fulfillment is handled by the brand itself. In a recent report, eMarketer identified that there has been a tremendous increase in website traffic compared to the last few years. These factors clearly indicate the success and penetration of D2C companies in the eCommerce market over time.
The D2C practices are generally performed across eCommerce channels, including websites, apps, and direct sales through the phone. This retail model is more complimentary than the traditional one, as it gives the retailer, an opportunity to have a better understanding of their customer.
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Advantages of D2C
- Market beyond limits
The D2C model goes beyond the traditional wholesale strategy, which results in the brand tapping new markets without any physical limitations such as local retailers. The process is carried out online and helps the brand grow in multiple dimensions.
D2C business allows the brand to tap new markets and achieve exponential growth
- Exponential growth
Do you know that in the USA, over 75% of people have transitioned their shopping habits from offline to online? Consumer expectations have reached new heights, and they prefer the online-first approach before making a final decision. Consumers crave personalization, and D2C brands work towards providing customers with the utmost convenience, which makes them stand out the most and results in skyrocketing sales and growth. One of the leading examples here is Nike. The brand’s D2C sales accounted for 35% of total sales in 2020 and are expected to reach 60% by 2025.
Growth of the D2C Industry over the years
D2C brands are technically advanced and follow an omnipresent approach; they are primarily present online with the aim to create one-of-a-kind experiences for their consumers. Some brands do have brick-and-mortar stores for the best customer experience and engagement. These stores are focused more on creating an unforgettable, value-added experience for the customers. To build communities and retain long-term customers, many brands utilize discounts, loyalty programs, reviews, and user-generated content.
Listed below are some facts that depict the immaculate growth of the D2C market all over the world.
Growth of D2C across the world
To invest in this retail model and make it a success, you need to thoroughly research and invest in its strategies and capabilities. It is critical to nurture the brand carefully, whether it be recognition or nurturing connections and customer relationships, both existing and new.
Pro-Tip: How you relate to the pain points of the customers and work on solving them matters the most in the business. It is not about offering just a solution; it is about offering the best solution to the consumer.
4 eCommerce Marketing Tips for D2C Brands
Here are a few eCommerce marketing tips with the aim of helping you seep into the D2C market and capitalize on the developments.
- Identify the problem and formulate a solution
Dive into the D2C business by talking about the problems with traditional shopping and giving the audience a solution. Mention how you are going to resolve the problem and what sets you apart from the competitors. A thriving D2C brand is all about the personal touch and the long-lost connection through which one can express themselves.
For this narrative to take place, market research becomes an imperative part of finding the niche and the solution. Now you have a targeted audience, and the next segment revolves around researching the obstacles often faced by customers. Make a list of the pain points and the best solution you can offer to solve the problem. You will get clarity on how your marketing campaigns will drive traffic and results.
Based on these factors, you will be able to make a plan for social media marketing and building brand value by taking care of the brand’s identity and relationships with people. Running a D2C store comes with several challenges, as you are on your own and have the responsibility to carry out all the tasks.
Pro Tip: Storytelling is important because it leaves a great impact on the customer’s mind and makes everything look relatable. Having excellent storytelling skills is an absolute must.
- Social Media is the Key
Social media platforms are the largest elevators for D2C brands. Facebook, Instagram, TikTok, Pinterest, and Youtube hold a lot of influence and are viewed as hubs for reviews, recommendations, and product reach.
You can reach a wider audience through these channels. Influencer collaborations, contribute to brand awareness and identity and offer an explosive audience and reach. These parameters leverage the brand at every step and also help in building good relationships in the long run. The collaborations are either barter-based or monetary, but at the same time, they are budget-friendly and save a lot of time and money.
Reviews by influencers leave a great impression in the minds of the viewers, and the chances of conversion become high. Customers are sometimes persuaded to give a product a try when it has both good reviews and an easy return or exchange policy. Sugar Cosmetics is one of the most successful direct-to-consumer (D2C) brands that used influencer marketing to grow into a multimillion-dollar brand in the beauty industry.
- Seo, Content and Infographics
An important eCommerce marketing tip that every brand should implement in their strategy is search engine optimization (SEO). Whether you are just starting out or have a growing company, a strong SEO strategy is an intriguing way to generate traffic and gain recognition. Investing in Adwords helps with a larger share and a better ranking in search engines and social media channels.
Meanwhile, value-adding content and powerful infographics can help the content penetrate better into the viewers’ minds when it comes to marketing the brand. One of the fastest-growing trends is viral video marketing, which has been used to create hype in the market.
- Omnichannel approach
Our final eCommerce marketing tip revolves more around the brand. When the D2C business expands both offline and online across various social and eCommerce channels, the need for having customer data organized in one place becomes a necessity. We strongly suggest that the brands go for an omnichannel approach to save you from last-minute stress. Omnichannel not only provides you with a centralized approach to reaching the target audience across all the marketing channels, but the brand also has authority over the pricing and promotions of the product.
Omnichannel benefits the brand by optimizing and boosting engagement with better pricing and ROI. In semi-urban areas, the whole customer journey is already affected by the growing power of social media influencers. This helps the omnichannel shopping experience grow and become more popular. Omnichannel is quickly becoming a popular place for direct-to-consumer fashion brands that want to offer easy-to-use touchpoints and focus on the customer.
Starting a business is easy, but making it grow from its roots is where the real challenges lie. As an amateur brand, it is highly likely that you will miss out on certain trends and strategies amid numerous tests and trials. We at Paxcom have subject matter experts when it comes to strategizing and running campaigns, AMS experts, business analysts, and data analysts dedicated to helping your business achieve exponential growth.
Find out how Paxcom helped a leading nutrition brand open up many sales opportunities across platforms, cut their ACOS by 6X, and increase their visibility and conversions. Kickstart your brand’s growth with the best in the industry and unlock the full potential of the business. Contact us at firstname.lastname@example.org or book a demo for more information.