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Why direct to consumer is a retail necessity

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“How to survive in the age of Amazon?”

“Amazon is reinventing retail.”

For years, these have been some of the most common questions throughout various industries, and one of the most searched queries on business sites. And who can blame us? It seems as though nearly every day Amazon announces a new product or innovation that only continues to extend their domination.

Not so long ago, Jeff Bezos stated that his main concern was how to prevent Amazon from failing one day.

In other words, the fear of failure is constant among those who lead: One of the biggest and most profitable companies in the world knows that consumers are constantly changing their buying habits. The same way that Amazon disrupted book business and later retail business per se, someone else – or several of them – will someday shake their dominance, too.

Think of smaller consumer product companies like Dollar Shave Club, Away, Warby Parker… They are rapidly changing the play of the game by building a more personal and more direct approach for reaching their consumers without the help of the middlemen.

As a retailer of everything, the experience Amazon offers is quite different from the one most of these startups can deliver. And for those startups, that differentiation can be their biggest advantage.

Direct to consumer: It’s about the little things

In a day and age where consumers have access to any product, anywhere, at any time, retailers need to find a way to stand out from the crowd. By going direct to consumer (D2C), niche markets can be both created for and supported by customers who are seeking more than a big box approach when it comes to their shopping needs.

For those companies who hone in on the customer experience by leveraging data and insights to deliver a personalized experience without the middle man, the rewards can be very lucrative.

And direct to consumer isn’t just for startups: Brands who have the ability to move some of their products to a direct to consumer model will see optimized CX, deeper insights into the consumer, and the opportunity to authentically create brand loyalty.

Direct sales is becoming critical for consumer product companies

The large majority of consumers — 88% as a BrandShop survey showed — would prefer to shop and buy directly from brands if they have that option, rather than going through a middle-man.

Those who were ahead of the curve and saw this trend of personalization emerging and are now mastering the art of creating products that are valued by the customer, at the right price, and with the right messaging.

They disrupted almost every industry they approached by understanding that:

1. Consumers are demanding a better experience – in all aspects of their lives – from B2B to B2C.

2. The direct-to-consumer model provides a priceless opportunity to build an authentic and consistent relationship with consumers.

3. Selling direct allows them to collect consumer data (only WITH consent!) so that they can constantly improve themselves and the customer experience.

If you haven’t thought about going direct to consumer, it’s time to start.

Are you ready to go direct to consumer (D2C)? Complete this questionnaire to find out! 

Ursa Mihajlovic
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January 23, 2019
Ursa Mihajlovic

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