Online is a continually growing sales channel (12.4% growth in Q1 vs. just 2% for regular retail). Yet many manufacturers of branded goods have been slow to join the eCommerce party. This is not surprising given the significant shift in operating model required to sell to individual consumers compared to the B2B business model that brand manufacturers have traditionally employed.
However, consumer expectation of brands is increasing, and there is clear and growing demand from consumers to engage directly online with brands - our new Future Shopper survey confirms it. This new report examines Direct-to-Consumer (DTC) as a viable channel to help brands in their efforts to meets these expectations.
Although a direct-to-consumer channel approach may not be a short term sales driver, we see a clear strategic value in incorporating it into a brand’s eCommerce strategy.
In this 2019 report, we look at the the ways that leading, international, multi-brand corporations are approaching the threat and opportunity posed by selling direct-to-consumer.
Navigating the ecommerce landscape is a tricky business for brands and retailers. Choosing the right platform for a product, competing or collaborating with Amazon, and whether to embrace new technology, are only some thoughts that will keep many of them up at night.
But how are these brands and retailers reacting, not just to today's demands of consumers, but to tomorrow's tech-savvy shoppers?