Your D2C business is a value delivery system

DTC strategy

“Only 7 procent of Fortune 500 CEO’s believe companies should focus on making profits - and not be distracted by social goals” - Mckinsey

We’ve all seen it: businesses that simply have the “it” factor. Whatever they touch, turns to gold. It’s not simply “tricks”, “gimmicks” or even breakthrough technology, it’s so much more. It’s a purpose. A purpose that answers the tough question: What impact does your business truly make? What would the world lose if your company disappeared today? It’s companies like these who will spearhead D2C in the next couple of years. 

Brands that are driven by a higher purpose, reach higher and achieve more. It’s the core of their being (and unsurprisingly the future). Millennials, Generation Z and (possibly) Generation Alpha will connect with their higher purpose. The ESG proposition needs to be mindful though, ESG  can never function as a “patch job”. Disingenuous activities can lead to “greenwashing”,“purpose-washing” or “unauthentic”, which in turn drives customers away and damage reputations.

What makes a DTC successful

So what do all these great DTC brands have in common?

  • Innovative products or services with a strong desire to help or deliver value
  • A strong sense of purpose and personality (a brand on a mission)
  • Utilize their direct connection to build emotional connections and forge personal relationships (often build communities)
  • Ensure that the economics add up (setting workable margins)
  • Harness the power of data to spearhead their growth (often driving innovation and improvement)
  • Understand that CAC costs are rising and adopt different marketing strategies when needed
  • Understand that DTC is just the beginning (the future of commerce is multichannel) 

While there are many DTC strategies a business can utilize, each successful DTC brand has one thing in common: D2C business delivers value. Often driven by a desire to help, their product development, marketing messaging, data analysis and customer servicer are communicating that value. Here below a few examples of D2C companies that are able to convey their UVP concretely, and compellingly.

Why do most DTC brands fail

Examples of great value-driven DTC businesses 

Bee’s Wrap

Bee’s wrap is a D2C business in the food industry that makes sustainable food wrap from organic cotton and beeswax. In many ways, it's an outlier in the tupperware market, but even these unique products need a stellar UVP. 

Consumer problem: plastic pollution by the use of single-use plastics containers
Product benefit: Sustainable food wraps made from organic cotton and beeswax
UVP:  “That’s a wrap on single-used plastic” 

Bee’s wrap cleverly taps into the millennials’ and Gen Z’s biggest pet peeve: plastic waste.  Their clever copywriting highlights their UVP “That’s a wrap on single-use plastic”. 

But this fun wordplay does more than connecting eco-conscious consumers, it goes beyond the product. It connects users to their value, emphasizing Bee’s Wrap commitment to social and environmental change as a B Corp and Green America certified company.

In short: their DTC brand articulates their product benefits while also connecting to the customer’s eco-friendly conscious. 

Karl Fazer Chocolate

Karl Fazer is Finland’s most treasured brand. This food experience company focuses on fast-moving consumer goods and currently operates in seven countries. They combine a strong Nordic heritage with bold new innovations to make meaningful and memorable food experiences. One of their most recent D2C leap was a customizable chocolate bar. Where people could design their very own Karl Fazer Milk chocolate bar and ship it to their friends. 

Customer's problem: meaningful food experiences that connect heritage and brings joy every day 

Product:. Personalized milk chocolate bar made from natural raw materials of the highest quality: fresh milk, sugar, cocoa mass and cocoa butter to send to friends and family. Packaged in famous blue wrapper, symbolizing the pure Finnish nature.

Value: Food with purpose: connecting people to amazing personalized food experience: "Northern Magic. Made Real."   

Fjällräven

Fjällräven is a Swedish outdoor sporting goods company that designs high-quality, sustainably made outdoor gear. Many of Fjällräven materials are developed in-house to keep their impact on the environment as small as possible.  Their commitment to sustainability appeals to the same like-minded individuals who happen to wear their outdoor clothes and equipment. This in turn only fortifies their value proposition. 

Customer problem: People who love the outdoors are concerned about persevering the nature they so dearly treasure. But sadly, most outdoor retail products that are durable aren’t environmentally friendly.   

Product: Outdoor gear made from materials like wool, organic cotton, down, and eco-shell that are extremely durable and environmentally friendly. 

Value:  Functional, durable, and timeless outdoor gear created on nature’s terms.

 

So how do you create a unique value proposition? 

An upcoming blog will tell you all about it. In the meantime don't hesitate to reach out, we can help you map out your D2C journey.