Digital Marketing for D2C

D2C or ‘Direct to Consumer’ is a relatively new wave of business

model and refers to when a company produces a given product in its
own facility, as well as distributes it within its own channels. These
channels may be an e-commerce platform, social media or physical
retail.

It’s an exciting space to be in and can work in almost any given

industry. If you’re looking for a team that understands and embraces
this model, please get in touch.

What is D2C or Direct To Consumer business model?

The D2C (Direct To Consumer) model gives the brand a direct
relationship with the consumer. In traditional B2C models, there is
often the role of a manufacturer, a distributor, a retailer and then the
brands head office team.

With D2C, lots of the traditional middlemen are cut out and business
strategy is centred around selling directly to the consumer through
e-commerce. This is becoming a popular option for manufacturers and
FMCG brands who are feeling the pressure from disruptive startups to
compete on service and innovation.

The key benefits of a D2C model are the direct relationship with the
end consumer. This means that product feedback, customer service
and the margins saved on extra stages of distribution ensure a better,
more innovative, customer experience. IAB research found that in
most categories (starting from mattresses and furniture to pet
products, personal care, and beverages), D2C brands are fast gaining
market share from incumbents.

Why is digital marketing essential for D2C?

The internet has facilitated this new wave of business model and
allowed it to flourish.

Ecommerce platforms enable sales, social media ensures ongoing

two-way communication and email marketing directly reminds
consumers to make that repeat sale. It’s an exciting space that has
provided consumers with a new standard in creative marketing and
product development.

By its very nature, digital marketing is essential for D2C because it

leverages the internet for each stage of the consumer journey. For
inbound marketing, channels such as SEO and paid search are
non-negotiable. Content marketing is also necessary in order to
develop a brand story when there are limited touchpoints to align the
business to its tribe. Content also strengthens consumer loyalty and
retention. Performance media is the final element that drives
acquisition and perpetuates awareness but it is not as heavily relied
on as you might think.
According to a 2019 report, 61% of D2C brands rely on social media
to reach customers. SEO is a close second (51%) in acquiring
customers.

How does D2C compare with E-commerce and traditional retail?

According to Shopify, e-commerce represents less than 5% of overall
Consumer Packaged Goods sales and the D2C movement accounts
for 40% of the sales growth in the sector.

UK consumers spent an estimated £106.46 billion ($141.93 billion)

online in 2019. This will make up 22.3% of all retail spend, a
proportion that was estimated to reach 27.9% in 2023 but with
unprecedented changes in consumer behaviour due to Covid-19, it’s
likely that the D2C model and e-commerce forecasts will have been
accelerated.

The thread that ties all successful D2C businesses together is a

strong visual identity. To stand out and compete with traditional retail,
emphasis is on brand aspiration and brand recognition. The desire to
be associated with that business has to be strong, this means clear
values, clear proposition and clear design articulating the ‘vibe’ of the
company instantly. If you compare the first impressions of a D2C
brand with a high street offering, it’s uncluttered and specialist –
owning its niche.

Summary
At its heart, D2C relies on an “emotional connection” with the product
and the brand. That loyalty is what keeps the customer coming back.
Your D2C marketing strategy should be designed exactly for this
purpose, to stand out among all the big retailers out there, tapping into
the emotional – not just rational – decision-making process.