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Brand manufacturers and retailers are moving to a direct-to-consumer (D2C) model faster than ever.
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The fashion and apparel business is undergoing tremendous change. There has been rapid growth of digital sales from e-commerce marketplaces, which has only been accelerated due to consumer behavior changes during the pandemic. As a result, companies are moving to a D2C model to differentiate themselves from their competitors.
The benefits of D2C for brands
1. Consistent brand experience
Direct consumer interaction is a superior way to create a compelling brand experience.
2. First-hand data
Valuable first-hand info can be processed for insight into preferences and purchasing behavior and used for product innovation.
3. Broader assortment offering
Wider product ranges can be offered.
4. Quicker innovation
Time-to-market for product innovation is shorter.
5. Targeted promotions
Promotions can be targeted to increasingly shrinking customer segments making short-term purchasing decisions.
6. Higher margins
Direct distribution to consumers can deliver higher margins if operations are set up favorably.