Trends and insights about D2C
Influencer marketing is a big plus
Let’s take the example of the skincare brand Nøie. They use a skin cream configurator which is based on skin problems. Their marketing message is based on authenticity as they use images posted voluntarily by customers after using their products. Authenticity in product and experience is important for customers, especially with younger generations, as they have no problems sharing personal information with brands. What a company values is also a deciding factor, hence sustainability and a brand’s outlook on various issues also remains important.
The D2C market is estimated to grow at 19.2% in 2021. D2C brands greatly benefit by using a subscription-based model, along with digital, social media and influencer marketing strategies. Again, this is where customer contact and satisfaction play a big role. Depending on the brand, product and the audience, it is easier to pick a method of promotion and to measure the impact of your product and marketing online. E.g. there are brands that choose smaller influencers or micro influencers to try out and promote their products. The more authentic an introduction, the better the response is to it.
Challenges to adopt the D2C model
While the D2C world sounds good, it isn’t a perfect picture, as surviving without a retail route is difficult. In the retail environment, you will find multiple brands within a particular category of products. This is particularly true of Amazon e.g. There is a tendency to get lost in the crowd, hence, ratings and recommendations of a product are so crucial to stand out. For a brand to be visible and available on the internet too, the products and marketing really need to stand out.
Customer reviews / created by vectorjuice - www.freepik.com
But the internet can prove to be a crowded space, and with bigger brands entering the D2C space, smaller players could have trouble in the future. Another big issue lies in logistics and when you’re not relying on a retail partner, managing your own supply chain will be a big challenge. A brand has to fill in the gaps and this can be daunting and messy. Additionally, you’ll probably need some expertise to manage the backend better.