DTC or D2C is the English acronym for the term “Direct to Consumer”. It names a model in which the manufacturer of a product sells directly to the final consumer, that is, without the need for resellers, distributors, wholesalers, retailers or intermediaries. A DTC e-commerce, therefore, is an online store, marketplace or other type of sales site operated by the manufacturer.
Industries such as automobiles, cell phones, and beverages, for example, are increasingly entering the DTC (Direct-to-Consumer) sector. Brands like Fiat , Samsung, and Coca-Cola, among others, now have online stores through which they sell the products they manufacture directly to the end consumer.
In effect, in a D2C e-commerce model, the manufacturer is responsible not only for sales but also for communication with consumers. This obviously requires the manufacturer to have a Marketing and Sales department or to hire an e-commerce and Digital Marketing agency such as Agência e-Plus , for example.
ADVANTAGES OF HAVING AN E-COMMERCE DTC
If you're a manufacturer, know that there are significant advantages to having a DTC e-commerce platform. To give you an idea, 68% of Generation Z, 58% of Millennials, 37% of Generation X, and 21% of Baby Boomers ordered products directly from brands in the last 6 months of 2021, according to a study by Retail's Big Show cited by the Mercado&Consumo blog . In other words, this represents a very significant demand.
But in addition to the great demand, operating a DTC e-commerce can generate other benefits such as:
- More agility to reach the end customer: you do not need to negotiate with intermediaries, which reduces bureaucracy and complexity of operations. In this way, you reduce costs and products reach end customers faster.
- More knowledge about the audience: when implementing an e-commerce, you manufacturer can collect data from consumers through systems such as Hotjar, Google Analytics, ERPs, CRMs, WMSs and OMSs, etc. Thus, it is possible to know your audience and improve your products according to demand.
It is worth remembering, finally, acting in the DTC does not mean that you will leave out retailers, wholesalers and distributors, among other intermediaries. On the contrary, it is possible to continue doing business with them. However, at the same time, you will have your own sales channel and relationship with end customers. This could increase your market share.
As soon as you can, click on “ B2G E-commerce ” and learn how this type of e-commerce works!
