In the 4.0 era, as customers increasingly demanding more enjoyable experiences from businesses and purchasing journey increasingly shortened through online channels. From there, Direct to Customer is also known as D2C is a relatively new term and is becoming the current Marketing trend. Does your business apply D2C? Don't leave this article!
1. What is D2C?
D2C stands for Direct To Consumer, which is a business model for businesses that directly sell products to customers (through genuine stores, websites, Fanpages, e-commerce sites) without the delivery of any distributed intermediate. This helps businesses optimize profits and brands to easily understand the behavior of more targeted customers.
In the world and in Vietnam, the industry has successfully applied D2 such as cosmetics, home appliances, fashion,…. Some major brands in Vietnam have successfully applied D2C such as: JUNO, Canifa, Vitayes, Saffron,…
2. Why is D2C becoming a Marketing trend today?
Save on intermediate delivery costs, agents to increase revenue efficiently
In order to distribute goods to the intermediate, dealers, retail stores, businesses must spend such expenses as: freight, sales training, commission policy, discounts to the intermediate,… So when the business adopt the D2C model, the business will sell the goods directly to the consumer hand, no need to adopt any intermediate. This helps businesses do not have to spend a fee, but the revenue still increases steadily.
Increase customer reliability on brand, product
Customer psychology is often afraid to buy goods through agents, intermediate for reasons such as:
-Buying mistaken "fake" goods, poor quality
-Unknown source of goods from distributors, dealers, retail stores
So when customers buy through the manufacturer will be more assured of the commitment to product quality, genuine products made by the manufacturer.
Easily comprehend the behavior of target customers
Nothing better if your business is in your hands of customer data, like: habits, preferences, buying behaviour,… This will help the business:
-Grips with our customers, thereby offering new products tailored to the target customers ' files
-Enterprises can actively distribute goods to the hands of consumers in direct and optimal
Don't worry about losing brand image by the dealer's lack of professionalism
Typically, intermediate units, dealers, retail stores are not tightly controlled by businesses or have too many distribution intermediate leading to difficult management. Therefore, enterprises often approach the customer care policy of the intermediate units and the care policy is not qualified, professional lack. But with the D2C model, businesses will direct sales to customers and implement policies to care for customers without having to pass any intermediate. Businesses will not have to lose credibility, brand image by lack of professionalism from these units.
3. D2C Model-Current Marketing trends bring many benefits to the business:
D2C (Direct To Customer)-The current Marketing trend will be very suitable for businesses who are manufacturers and products of consumer fast (FMCG). Because the D2C model helps to bring many advantages such as:
-Create sales opportunities for customers quickly
-Have competitive prices with other brands, because this is a business model that does not use channels such as dealers, intermediate
-Cost savings for product distribution to dealers and intermediate
-Increase customer reliability for products without worrying "fake" goods
-Better understand the audience of customers because the business will come into direct contact with consumers
-Can test new products directly with a customer segment of the enterprise and help businesses receive direct response, quickly from customers
-Can provide customer care as desired without worrying about lack of professionalism or lack of customer care from dealers and intermediate
The use of the D2C (Direct To Customer) strategy now has helped many businesses reach closer to their customers. However, to switch to the D2C model, the business has to be exchanged, it costs quite a lot of time and resources such as: investing in sales, better customer care, marketing strategy must attempt tens of times to be able to highlight the product. . So let Metall Agency help businesses convert to the D2C model better, more efficiently.
