Direct-to-Consumer eCommerce – D2C
Own your brand, customer relationships and data
Direct-to-consumer, also recognized as D2C or DTC is a business model where brands sell their goods directly to customers. In practice this means that there isn't resellers, wholesalers or distributors between the brand and the customer.
The D2C brings new market opportunities and allows the companies to:
- Full control over their brand and build direct long-term relationships with customers. The customer can be taken to the core of the business: the two-way customer relationship is a channel for feedback, co-creation and better customer data.
- Grow product margins. Without intermediaries the product margins are significantly higher. This gives you a better chance to focus your resources on what matters most: marketing and growth.
- Offering value to current retail partnerships. It is often feared that moving to the D2C model could cause resentment in retail partners but in fact, D2C can bring new value to these partners as well.
GPG’s and manufacturing brands are facing the change
Commerce is in the core of the D2C revolution. A mass of retail locations are closing down. In-store sales growth is decreasing and new digitally native vertical brands (DNVBs) are challenging the traditional actors. eCommerce still represents less than 5% of overall CPG sales (Consumer Packaged Goods) but the D2C sales account for 40% of the sales growth in the sector (Shopify, 2019).
The U.S market e-commerce CPG sales ($billions) and year-to-year development (Rakuten Intelligence, 2018)
Begin your D2C journey
The motion towards direct-to-consumer business is best done with agile business experiments combined with systematic growth hacking and guerilla marketing. New processes and eCommerce overall can be swiftly tested outside of the current systems without exhausting and slow IT projects.
After positive results the experiment can be extended to other brands, products or services. We have seen our customers piloting new business models, markets, subscription models and flash sales.
Woolman has helped over 200 European brands to succeed in global commerce. We have the capability to execute new business experiments and gain proof of concept for companies seeking value from direct sales to end-user customers.