WHAT IS D2C?

D2C is a type of e-commerce that removes all middlemen, or retailers. Brands that adopt the D2C business model circumvent traditional stores by selling directly to consumers online. This approach streamlines the buying journey and allows brands to retain full control of the manufacturing, marketing, and distribution of their products.

WHY SHOULD MARKETERS CARE?

D2C brands innovate at a rapid pace and excel at creating seamless experiences for consumers. At a time when shopping preferences and expectations are swiftly changing, D2C emphasizes satisfying consumer needs.

 

Not only are D2C brands disrupting the traditional retail landscape and transforming how consumers shop, but they are challenging legacy brands as they gain popularity and market share.

HOW CAN IT HELP YOUR BUSINESS?

The D2C approach can help a brand disrupt a market, rather than be disrupted, in a highly cost-effective way. Through speed, flexibility, and agility, D2C brands build share by selling directly to their target customers.

 

Adopting the D2C model has many advantages, including but not limited to low barriers to market entry, no physical footprint requirement, a favorable cost structure, direct ownership of customer relationships, access to first-party customer and transaction data, and the aptitude for hyper-target marketing.

The New Consumer Contract, with Erich Joachimsthaler of VIVALDI

Today’s guest is Erich Joachimsthaler, VIVALDI CEO and author of The Interaction Field (among others). Since his time at university, Erich has spent his career chasing the intangible value of a brand, far beyond sentimentality and logo recognition. In his latest book, Erich lays out the true intangible value brands can leverage — new digital business models that go beyond delivering great products and services. He shared why brands must enter into a new “Customer Contract” with consumers, one in which they work to solve problems faced by society, not the market.

> See all episodes
Light at the End of the Tunnel: How Dark Stores and Micro-Fulfillment Centers are Revolutionizing the Retail Supply Chain

As the well-worn proverb says, “necessity is the mother of invention,” the pandemic hit retail spaces particularly hard, pushing consumers to use ecommerce more as social and safety protocols increased. While there may be more stores open now, shoppers have found that the convenience and speed when ordering items online is invaluable even long after the protocols have gone.

To take advantage of this, retailers have turned parts or all of their spaces into “dark stores,” which act much the same way a warehouse or fulfillment center would. The opportunity then arises for retailers to not only leverage a wealth of direct consumer data from these types of transactions, but also provide greater personalization and localization services. This itself sets off a bevy of offers and angles from which to engage their customers.

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WHAT IS DIRECT-TO-CONSUMER?

D2C is a type of e-commerce that removes all middlemen, or retailers. Brands that adopt the D2C business model circumvent traditional stores by selling directly to consumers online. This approach streamlines the buying journey and allows brands to retain full control of the manufacturing, marketing, and distribution of their products.

WHY SHOULD MARKETERS CARE?

D2C brands innovate at a rapid pace and excel at creating seamless experiences for consumers. At a time when shopping preferences and expectations are swiftly changing, D2C emphasizes satisfying consumer needs.

 

Not only are D2C brands disrupting the traditional retail landscape and transforming how consumers shop, but they are challenging legacy brands as they gain popularity and market share.

HOW CAN IT HELP YOUR BUSINESS?

The D2C approach can help a brand disrupt a market, rather than be disrupted, in a highly cost-effective way. Through speed, flexibility, and agility, D2C brands build share by selling directly to their target customers.

 

Adopting the D2C model has many advantages, including but not limited to low barriers to market entry, no physical footprint requirement, a favorable cost structure, direct ownership of customer relationships, access to first-party customer and transaction data, and the aptitude for hyper-target marketing.

“The key to success is to understand that consumers still want what they have always wanted: quality, convenience, and brands they trust. The catch is that consumers have redefined the value that these characteristics bring to their lives, often to the detriment of legacy brands.”

Jim Nail

Principal Analyst of B2C Marketing

Forrester

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into D2C? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

How Traditional CPG Companies Adopt a Challenger Brand Mindset

ANA. February 2020

With direct-to-consumer (DTC) brands nipping at their heels, traditional CPG companies are scrambling to implement marketing initiatives so they can be more like challenger brands.

Scaling a Startup and Disrupting the Lending Industry

ANA. January 2020

Through a combination of brand-building and performance marketing, direct-to-consumer financial technology startup Lendly grew to become a $100,000,000 business in just one year.

How Gravity Products Pushes its Weight

ANA. December 2019

The brand director at Gravity Products shared how the popular D2C brand scaled its business and won customers through the three Ps: product, purpose, and partners.

Download Now!

According to LUMA Partners’ recent research “D2C Brand LUMAScape,” there are currently more than 400 D2C companies, and this number is only growing. As more brands circumvent traditional stores by selling directly to consumers online, D2C will continue capturing market share while transforming how consumers shop.

 

To help marketers understand D2C and the threat this emerging economy presents for traditional retail, ANA Marketing Futures spoke with marketers, experts, and early adopters across the industry to get their perspective on D2C. The report summarizes key findings, statistics, trends, and case studies that explain how D2C brands are disrupting businesses, and what this shift means for marketers.

Jim Nail

Principal Analyst of B2C Marketing

Forrester

“The key to success is to understand that consumers still want what they have always wanted: quality, convenience, and brands they trust. The catch is that consumers have redefined the value that these characteristics bring to their lives, often to the detriment of legacy brands.”

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into D2C? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

How Traditional CPG Companies Adopt a Challenger Brand Mindset

ANA. February 2020

With direct-to-consumer (DTC) brands nipping at their heels, traditional CPG companies are scrambling to implement marketing initiatives so they can be more like challenger brands.

Scaling a Startup and Disrupting the Lending Industry

ANA. January 2020

Through a combination of brand-building and performance marketing, direct-to-consumer financial technology startup Lendly grew to become a $100,000,000 business in just one year.

How Gravity Products Pushes its Weight

ANA. December 2019

The brand director at Gravity Products shared how the popular D2C brand scaled its business and won customers through the three Ps: product, purpose, and partners.

Download Now!

According to LUMA Partners’ recent research “D2C Brand LUMAScape,” there are currently more than 400 D2C companies, and this number is only growing. As more brands circumvent traditional stores by selling directly to consumers online, D2C will continue capturing market share while transforming how consumers shop.

 

To help marketers understand D2C and the threat this emerging economy presents for traditional retail, ANA Marketing Futures spoke with marketers, experts, and early adopters across the industry to get their perspective on D2C. The report summarizes key findings, statistics, trends, and case studies that explain how D2C brands are disrupting businesses, and what this shift means for marketers.

About ANA Marketing Futures

Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.

 

ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.

 

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