DTC has revolutionised sales and establishing customer relationships

Consumer

It was primarily online startup businesses that made direct-to-consumer (DTC) popular. The new model allowed consumer goods firms to establish relationships with consumers directly.

The Covid- 19 pandemic forced companies to move into the online sales space since thousands of physical stores were forced into closure, leaving mass uncertainty regarding their survival. However, the movement into online selling and DTC had begun previous to the pandemic. Data-driven businesses had already discovered that the benefits available from consumer transactions are not limited to a sale but also the one-on-one relationship that may come as a result.

“The magic of DTC is that it unlocks the opportunity for direct relationships that would not have come into existence without the model“

The magic of DTC is that it unlocks the opportunity for direct relationships that would not have come into existence without the model. DTC creates enhanced and improved descriptions of customers and a bespoke experience.

Some CPG companies (firms that manufacture products that consumers regularly buy) have felt apprehensive about going in the direction of DTP due to logistical complications that come alongside the move. This particularly applies to those firms that are especially for companies that are dependent on selling large quantities of consumer goods to stores such as Walmart or Tesco. The idea of transitioning to DTP may result in issues with these high value retailers which is a primary concern.

There are, of course, CPG firms that were not originally established online. These businesses can use a hybrid model where they continue to sell through retail streams both online and offline. While also selling products from their own ecommerce sites, encouraging customers to go to brand websites and share essential personal information that can then be used by the business. It can be used to create marketing strategies, innovation, testing, and hyper-local demand sensing.

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