D2C e-commerce is a digital business model where product manufacturers can sell their products directly to consumers through their websites without relying on intermediaries. This way, they don't have to rely on traditional stores for marketing and selling. Additionally, D2C allows brands to connect with their customers directly, establish long-term relationships, and understand their pros and cons.
D2C is equally beneficial to customers as well. Direct purchase from brands enables customers to buy the products at discounted rates and receive comprehensive information and better knowledge about the brand. According to Invesco, more than 50 percent of the consumers opt to visit D2C brand websites than retailer websites because they offer more comprehensive information and guides.
Fuelled by over 47 million internet users in India, e-commerce is at an all-time high, with more brands seizing the opportunity to reach users through D2C.
Why 2021 Will Be the Year of Direct-To-Consumer?
2021 will see a sharp growth in D2C sales more than ever before. Several D2C brands have taken over social media and digital spaces to reach out to their target audience. A report by Avendus on D2C Brands: Disrupting the next decade of shopping states that new-age brands are eyeing a $100 billion opportunity in India by 2025 as D2C brands are set to disrupt the way India shops in the coming decade.
D2C Builds on Customer Experience
Consumers are more inclined towards customized solutions and services obtained without stepping out of their homes. D2C offering both made it rise in popularity. D2C companies are customer-centric and offer personalized solutions and discounts to their customers. Most brands focus on content customization, digital solutions, loyalty programs, quality enhancement, product customization, and more to provide a holistic customer experience to their buyers.
Last year when the pandemic set in, D2C saw a rise in niche brands across various categories like essentials, furniture, cosmetics, home decor, and furnishing sector. The demand for essentials topped the charts, with work-from-home becoming a norm in organizations.
The Increasing Demand for Essentials
The pandemic has changed people’s purchase patterns, and they are shopping for home wear and essentials more. Since work from home has become the norm for the past 1.5 years, D2C apparel brands have seen a steep growth trajectory, with more and more people looking for comfortable clothing and fashionable leisurewear than ever before. As work from home continues, this pattern is likely to increase in 2021.
Most e-commerce platforms use AI to offer a personalized shopping experience to customers by understanding their purchase products and understand their grievances. D2C is ls tapping AI to its full potential to provide customized recommendations and increase conversions
With the increase in demand, D2C (direct-to-consumer) has been exploiting all marketing possibilities like global distribution, price tactics, understanding customer needs and habits, and offering customized solutions and points of sale. It is sure to see a forward growth with more businesses shifting to D2C strategically and intelligently to tap the potential of knowing their customer better, reducing dependencies, and having more control over the brand.