D2C: What It Is, Advantages, And Marketing Challenges

In this chaotic context, a concept gained traction in the world industry: D2C. Direct Consumer is the sales modality in which manufacturers offer their products directly to the final Consumer without intermediaries.

With the expansion and constant evolution of the internet network, direct sales to consumers have become increasingly simple and possible for companies of different sizes and segments.

It is precisely this topic that we want to talk about. Stay with us and learn more about this innovative solution for the industry!

And if the concept is interesting for your business, take the opportunity to understand how to adhere to D2C to sell directly to the Consumer. 

What Is D2C

D2C or DTC are acronyms for “Direct to Consumer.” In literal translation, the term means “direct to the consumer” and refers to the commercial relationship, without intermediaries, between the factory and the consumers.

In traditional ways, products travel extensively from stock to users’ hands. There may be distributors, commercial representatives, resellers, and a series of other intermediaries responsible for connecting manufacturers and consumers.

This way of operating is functional, as it allows the industry to focus its efforts on what it does best: the production of goods.

However, D2C can also be very beneficial for business. By using the direct sales channel, factories can obtain a higher profit margin and establish closer contact with the customer.

Before the consolidation of e-commerce, “shortening” the path between manufacturers and the end consumer was a complex and expensive process for the industry.

After all, a series of steps required significant internal changes. In addition, opening a physical store for a manufacturing company, for example, needed to be a highly effective business to compensate for the investment made.

However, the borderless reach of virtual stores has made creating direct sales channels much more accessible.

With Direct Consumer (D2C), the industry can sell its products to the final Consumer via e-commerce, a channel that offers many advantages to the business and buyers. 

Advantages Of Direct To Consumer (D2C)

Each company has its particularities within the market of which it is a part, right? But there are some general advantages to selling directly from the factory to the Consumer. How about finding out if they apply to your business? Let’s know some good results of the DTC for the industry. Check out!

Access To More Customer Data

Manufacturers are restricted to the relationship between factory and sellers by using intermediary sales channels. 

Through D2C, the industry has direct access to customer and end-consumer data, which can generate information relevant to the business.

Better Margins

Without intermediaries, D2C promises more good profit margins than those presented by traditional industry selling.

For example, sales teams and representatives are often paid commissions for their work. By eliminating this step, factories also eliminate the commission payment and can increase the business’s profitability.

Greater Control Over Marketing And Sales

The path to ending consumers can be so long that the manufacturer loses control over the marketing and sales processes. 

Even with excellent internal work in these areas, commercial management is under the responsibility of the intermediary sales channels.

By using D2C, the industry can effectively control the strategic, tactical, and operational levels of its business’s marketing and sales sectors.

Customer Back Innovation

Another great advantage of having a direct sales channel is the close relationship established with the Consumer.

Through e-commerce platforms, for example, factories can receive important feedback directly from their customers and obtain relevant data for the innovation process.

This way of collecting market information tends to be much faster, more effective, and cheaper than other ways of obtaining the same data.

Thus, the so-called Customer Back Innovation provides relevant content and great value for money for manufacturers.

Excellence In Products And Services

Finally, a good result of using Direct Consumers is the improvement of manufactured products and services provided by industries.

Due to the close contact with the final Consumer, manufacturers can develop items and make deliveries that are much more aligned with the demands and expectations of their customers.

Also Read: The Four Advantages Of Digital Marketing For Companies