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What Is Direct-to-Consumer and Why Are Brands Doing It?

By Avinash Raj 15th June 2021

The explosive nature of direct-to-consumer business surely is turning many heads. Since more and more big brands are opting to sell directly to customers via online channels and mobile apps, it is a win-win for both parties involved. And that is the defining aspect of the D2C model of business because it only has two parties, the buyer and the seller. 

In simple terms, direct-to-consumer business involves you selling your products to consumers and completely eliminating any intermediaries in the process. We see this a lot nowadays, especially in the fashion industry – brands sell clothes, shoes, phones, computers, and much more. The fact that big names like Apple, OnePlus, Nike, Adidas, etc. are utilizing D2C is proof that it is a profitable mode of doing business.

In fact, in the last year, Nike saw 1/3rd of their sales coming from their website. This is largely due to the global pandemic that we are stuck in, but it is still business as usual for Nike. The fact is that the DTC brand example is the talk of the town because of how effective and reliable it is.

direct to consumer

Competition in Business

Ever since e-commerce sites such as Amazon, Flipkart, Myntra, etc. started providing the common folk with everyday items online, people have realised the convenience of shopping online. This has impacted retail traders the most. Retail businesses have had to take the brunt of online shopping mainly because they fail to offer the same discounts and offers that the big players can. The cutthroat competition in the market has had everyone vying for more customers. Going online has clearly been the best bet as we see many retailers launch their own apps and websites. The verdict is crystal clear, taking your store online is a must, but if you can target your consumers directly, then you have a sure shot at big success.

Why Go Direct to Consumer?

By choosing a direct-to-consumer approach, you effectively give your business a great head start. Some of the best advantages of D2C are listed below.

Building a Relationship with Your Customers

A D2C business deals directly with consumers, so chances are that you can interact with your customers more easily than before. With the possibility of receiving instant feedback in the form of reviews and ratings, you can reach out to customers personally to deliver better experiences. Not only does this build your brand reputation but it also ensures that you will have enough repeat customers.

Possibility of Data Collection

Let’s face it, customer data is a gold mine for any online business. With each and every order, whether be it from a past customer or a new one, your data repository gains much-needed addition. This data helps you target customers with personalised offers and promotions. Offering personalised experiences to your customers is a great way to ensure brand loyalty and earning goodwill. Most customers expect exceptional service along with good product quality. Therefore, personalised marketing ensures the best customer support.

Launching New Products with Ease

No longer will you need third-party platforms to announce new launches or festive season offers. Run your campaigns directly on your website and mobile apps and you can guarantee that you will receive the desired visibility and reach that you expect. 

Why DTC Brands Are Winning Retail?

A DTC brand is sure to succeed in the current climate. With the COVID-19 pandemic rendering retail stores moot, now is your chance to strike. The market is hot and is expecting more and more new players. You can see examples around you every day. The food industry in particular is thriving in an online-only market. Food is an essential item so it should come as so much of a surprise.

However, keeping in mind the work-from-home scenarios, you can anticipate what the market demands. For example, furniture sales have seen a sharp rise because people working at home require proper desks and chairs. The same can be said for home decor, appliances, coffee makers, and pretty much anything else people need to stay equipped at home. Clothing brands have enjoyed good business despite braving a pandemic because people’s love for clothes is never going away.

To establish your brand, you need to figure out what is being consumed and what is not being supplied enough. With an online-only selling model in place, you can be assured of bigger profit margins. This allows room for better marketing coupled with the right content strategy. 

Take Your Brand to the Next Level with Jungleworks

Jumping into an online D2C business without prior experience can indeed be unfamiliar and overwhelming. With enough market research, you can learn what consumers want. On the online front, you need a platform that can do your work for you. Well, you’re in luck! Yelo by Jungleworks is a D2C website platform that can fulfill all your application requirements and then some.

If you want to take your brand to the next level, you need to capitalise with a good start. Yelo delivers on that promise with its multipurpose platform. Do more with less using Yelo. 

To start off, Yelo brings an easy-to-use website and mobile app that can be mapped with your product portfolio. With a website in place, your business can be officially on the market in no time. Additionally, rich features such as a fine-combed UI along with multiple gateways give the users an immersive experience. 

From a business standpoint, Jungleworks establishes a platform that can cover all your basics in one place. Sales, marketing, and service can all be handled right from the master website. 

  • With automated marketing, you can target customers with personalised ads. 
  • AI-enabled chat allows you to deliver seamless customer support 24/7. 
  • Reporting and analytics give you the impressions that your brand created and allows you to infer assumptions.
  • Customer reviews and ratings give you a clear idea about how your products are performing.
D2C store

Yelo gives a 360-degree holistic view of your business with its simple layout and user-friendly application. With the option of third-party APIs, you can always decide which other features you want to add to make your website fully equipped. Direct to consumer brands have it all made for them with the functionalities that Yelo offers. The best part is that it is highly affordable even for a small startup. Quick and sophisticated implementation by our experts ensures that you can go to market within a day. If you are looking for a personalised website and app that represents your brand the best, Yelo is the answer.

Conclusion

Keeping up with trends is absolutely essential to stay relevant today. In a competition-heavy market, the innovator is the one that always comes up trump. Online businesses are booming, so jumping on the bandwagon is a good idea but you will only be guaranteed success if you think two steps ahead. With Yelo, you get a clear jumpstart and you can be assured that you begin with an advantage over the others. Yelo has helped hundreds of brands launch their D2C websites, so they bring in the much-need expertise that your brand needs. Choose what is right for your business and always move in a direction that leads you forward. Yelo is here to help you in your online journey. Book a free demo now!

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