Today, we address this issue: Leading Brands Quickly Expanding DTC Marketing. And the necessity of this during the COVID-19 pandemic.
The material below builds on our discussion week about How Some Service Firms Are Adapting Virtually.
For those readers not familiar with the term DTC (direct-to-consumer) marketing, we offer the definition from BigCommerce: Direct to consumer means you sell your product directly to your end customers without third-party retailers, wholesalers, or other intermediaries.
With more popular brands joining than before, DTC is definitely changing. According to Wikipedia: DTC brands [were] usually sold only or mostly online. And specialize in a specific product category. Including Casper, Warby Parker, Everlane, Harry’s, Outdoor Voices, AWAY, and Dollar Shave Club.
Leading Brands Quickly Expanding DTC Marketing
Until recently, many manufacturers avoided direct-to-consumer selling. Why? They wanted the strongest possible physical presence. In fact, in-store shopping accounted for most retail shopping. And retailers did not want the competition from the firms from which they buy.
But, this distribution approach is changing. Even for some big brands sold in supermarkets.
As an example, The Economist reports that:
“Selling directly to consumers used to be the preserve of upstart brands. Otherwise, they would have been crowded off shop shelves by larger rivals. By cutting out retailers, young firms won brand loyalty and backing from investors who poured billions into ‘direct-to-consumer’ companies. But those larger competitors are themselves coming to see the merits of the business model.”
“A number of the world’s best-known brands have, in recent months, built direct-selling operations. Others that have long had in-house E-commerce platforms now rely on them far more heavily to make up for sagging in-store purchases.”
“Large food-and-drink companies were long content to rely on their prime position on supermarket shelves. They are getting in on the act, too. In May, PepsiCo launched PantryShop.com and Snacks.com to sell its drinks and snacks. Shopify, which helps companies set up E-commerce platforms, claims it did so for Heinz in just seven days.The platform, Heinz to Home, serves the firm’s British customers. AB InBev, the world’s largest brewer, is testing its own direct-selling scheme at home in Belgium.”
To read more from The Economist, click the image.