{"id":8903,"date":"2021-02-27T04:11:00","date_gmt":"2021-02-27T04:11:00","guid":{"rendered":"https:\/\/www.ateamsoftsolutions.com\/beta\/?p=8903"},"modified":"2021-04-09T16:46:27","modified_gmt":"2021-04-09T16:46:27","slug":"the-rise-of-direct-to-consumer-e-commerce-the-d2c-revolution","status":"publish","type":"post","link":"https:\/\/www.ateamsoftsolutions.com\/beta\/the-rise-of-direct-to-consumer-e-commerce-the-d2c-revolution\/","title":{"rendered":"The rise of Direct to Consumer e-Commerce: The D2C Revolution"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Retail is a consumer-driven sector. Every now and then a new trend changes the structure of the aggregate market as it is influenced by consumer habits and behaviour. The retailers are always trying to decode and function accordingly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before moving on to how Direct to Consumer, a breakthrough trend, has changed the market, Let&#8217;s understand what is Direct to Consumer Model.<\/span><\/p>\n<h2><b>Contents<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#what-is-the-direct-to-consumer\"><span style=\"font-weight: 400;\">What is the Direct to Consumer model?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#direct-to-the-cnsumer-market\"><span style=\"font-weight: 400;\">Direct to the Consumer market in Australia and The United States.<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#adventage-of-having-a-d2c\"><span style=\"font-weight: 400;\">Advantages of having a D2C e-commerce website.<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#example-of-successful-e-commerce\"><span style=\"font-weight: 400;\">Example of Successful e-Commerce Websites<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#conclution-and-future-growth\"><span style=\"font-weight: 400;\">Conclusion and Future Growth<\/span><\/a><\/li>\n<\/ul>\n<h2 id=\"what-is-the-direct-to-consumer\"><b>What is the Direct to Consumer model?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Traditionally, retail and business have a lot of processes before the launching of a certain product. One of the major processes is the process of dealing with the middlemen.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Direct to Consumer is a channel through which you can gain great insights and make predictions. Direct to Consumer is a model that allows the business entity to sell its products directly to the consumer, cancelling out the various middlemen. Direct to Consumer brands are usually online stores, but some of the D2C stores have launched a limited number of physical retail shops.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This sounds incredible, both for consumers and the entities, but it increases the load on the business. But, it also maximizes one of the biggest aims of the business: Profit. When well planned and strategized, it can work with ease and be an effective way of doing business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">D2C can be fully functional or a part of the retail could be added to the D2C category. This means an entity can sell everything or some of its products digitally. One instance of such a brand is, <\/span><a href=\"https:\/\/en.m.wikipedia.org\/wiki\/Away_(luggage)\"><span style=\"font-weight: 400;\">Away<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h3><strong>A brief history<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">D2C dates way back, even before electricity and advanced transportation existed. D2C simply isn&#8217;t just online retailing, it can be stated as local buying, shopping from your nearby micro-stores. In the older days, when the geographical distance was a barrier, the farmers had a tightly bond relationship directly with their buyers. But, as the technology improved and the geographical barriers weakened this technology became sparse.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, it started topping the charts again in the 1990s\u00a0 when online retailing was just starting, thanks to the <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble\"><span style=\"font-weight: 400;\">Dot com bubble<\/span><\/a><span style=\"font-weight: 400;\">. And, now in the time of New Normal, the way the world has changed, it has witnessed a great growth in the Direct to Consumer business model. The sectors that are seeing a growth and are interested in D2C are: Healthcare, Necessities, Petcare, and many more.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h3><b>Statistics, Globally:<\/b><\/h3>\n<blockquote class=\"blockquote\"><p><strong><i>2020 has been the year of D2C (Direct to Consumer). Shopify stated that all the countries are growing rapidly. There has been a 42% rise in the overall market. A report suggests, 61% of people are willing to share their personal data if that makes their shopping experience as smooth as butter. 54% of the people expect to receive personalized offers from their brand more frequently. 24% of people suggest a need for stronger security on the payment gateway. Around 25% of the people strongly insist on having the same day delivery option. <a href=\"https:\/\/www.shopify.com\/plus\/guides\/global-ecommerce?itcat=plusblog&amp;itterm=global-ecommerce-statistics\">This data<\/a>, suggests in the past five years there has been a cumulative growth of 276.9%.<\/i><\/strong><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Further is a steady graph of the trends in Direct to Consumer:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" class=\"blog-img-left aligncenter wp-image-8977 size-full\" src=\"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-content\/uploads\/2021\/02\/retail-ecomerce-sale.png\" alt=\"\" width=\"1600\" height=\"928\" \/><\/p>\n<h2 id=\"direct-to-the-cnsumer-market\"><b>Direct to the Consumer market in Australia and The United States.<\/b><\/h2>\n<p><img loading=\"lazy\" class=\"blog-img-left aligncenter wp-image-8979 size-full\" src=\"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-content\/uploads\/2021\/02\/gpc.png\" alt=\"\" width=\"1000\" height=\"624\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In major countries, the CPGs are growing faster with the help of Direct to Consumer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Plenty of Retailers have gone Direct to consumer in the United States. In 2019, the D2C e-commerce market was estimated to be $14.28 billion. Reports suggest that in 2020, this chart boosted by 24.3% which is $17.75 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A large number of surveys suggest that D2C has a high satisfaction level in both the consumers and the business entities. Due to the pandemic, the sales rocketed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the US, in 2020, D2C remained at a steady 2.6% growth rate. The most purchases, over 87.3 million, were made by people with an age of 14 years or more.<\/span><\/p>\n<blockquote class=\"blockquote\"><p><i><strong>The Australian e-commerce sector has seen an immense and impressive growth in Direct to Consumer, 9% of Australia&#8217;s total retail.<\/strong><\/i><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">One good example of a Direct to Consumer site is <\/span><a href=\"https:\/\/www.ozbargain.com.au\/\">OzBargain<\/a><span style=\"font-weight: 400;\">. This website curates deals and lists them for consumers to view providing a direct like to the seller. Users can vote what they like and the most voted will appear on top of the pages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So far in 2021, we have seen more people shopping online than ever before \u2013 up 31% in February to 5.2 million, when compared to the average in 2020 \u2013 and unsurprisingly, online purchases are growing at a rapid rate across the country, stated an e-Commerce report.<\/span><\/p>\n<h2 id=\"adventage-of-having-a-d2c\"><b>Advantages of having a D2C e-commerce website<\/b><\/h2>\n<p><img loading=\"lazy\" class=\"blog-img-left aligncenter wp-image-8982 size-full\" src=\"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-content\/uploads\/2021\/02\/D2C.png\" alt=\"\" width=\"1200\" height=\"675\" \/><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Direct Consumer interaction and Relationship<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Before the popularity of the Direct to Consumer model, the business entity seldom communicated with their consumers. Yes, they gained insights using the various advanced marketing tools, but that&#8217;s definitely not the best way to understand the needs of your consumers. This also includes the post-sales experience. And in a focus group, this never gets the spotlight. D2C enables the CPG brands to gain better insights into the needs and complaints of their consumers. This in turn improves the consumer satisfaction scale.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Trackable data and buying habits of consumers<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Direct to Consumer not only provides a personal touch to consumer query solving but it also helps to track the buying habits and data more effectively. In this way, you can suggest and sell what your consumer wants, using various algorithms. This will not only increase the consumer satisfaction but also the sales.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Personalization and Customized delivery<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">How amazing it is that when you&#8217;re thinking of buying some stuff and an email in your inbox says that there&#8217;s a big fat discount on that exact product? So amazing, am I right? Yes. Data-driven personalization of offers on products is a blessing as a consumer. The business entities use the tracked data and make personalized listings and offer according to your habits. When we order food at a restaurant, don&#8217;t we just like it if it&#8217;s well presented? e-Commerce websites enable customized delivery of things you order.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Omni-channel Experience<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Omni-channel business entity means that the business exists in both the physical and digital world. Before, D2C this was not possible. This is a modern approach which provides a satisfactory consumer experience. This promotes the engagement and sales. <\/span><a href=\"http:\/\/blog.hubspot.com\/marketing\/mastering-the-art-of-omni-channel-personalization\"><span style=\"font-weight: 400;\">Hubspot<\/span><\/a><span style=\"font-weight: 400;\"> explained this as, &#8220;the ability to deliver a seamless and consistent experience across channels while factoring in the different devices that consumers are using to interact with your business.&#8221;<\/span><\/li>\n<li aria-level=\"1\"><b>Increased sales and margin<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Every business entity&#8217;s major goal is to maximize profit, with the help of Direct to Consumer, this happens with ease. The Direct to Consumer model eliminates the middlemen (e.g: Wholesalers) Making all the income to fly to your hand.<\/span><\/li>\n<li aria-level=\"1\"><b>Increased Market opportunities<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">When a consumer buys from you and is satisfied because they were given a great customer service, they suggest you forward to their known people. This brings in natural marketing. With the collected data because of D2C, you will be able to provide the consumer exactly what they need, which will in general boost your market opportunities.<\/span><\/li>\n<li aria-level=\"1\"><b>Faster to market<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">On an average, the range of a product launching is 18 to 36 months. This includes the time period of conceiving the idea to bringing it on the shelf of a store. This is when it is done in the traditional way. It is very time-consuming. And legacy brand are publicly trading companies, so they need to take care of their shareholders before all else, the convincing can be pretty hard. And without a history of the product, it&#8217;s a risky task. With the help of D2C, manufacturers can ease the risks by launching the product on a small scale for experimenting and testing purposes. This again helps in understanding what your consumers love.<\/span><\/li>\n<\/ul>\n<h2 id=\"example-of-successful-e-commerce\"><b>Example of Successful e-Commerce Websites<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/www.budweiser.com\/\"><b>Budweiser<\/b><\/a><b>:\u00a0 <\/b>I<span style=\"font-weight: 400;\">n 1867, two German immigrants, Adolphus Busch and Carl Conard developed a &#8220;Bohemian-styled&#8221; lager in the United States. It is one of the best selling beers in the United States. While in 2020, where the physical stores of the Budweiser saw a dip in the revenue, the DTC digital store almost made a billion dollars. With D2C Budweiser grew larger in the new normal. In an interview, Carlos Brito, the CEO of Budweiser stated that Direct to Consumer enables them to be closer to their consumers leveraging technology to personalize the experience.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/www.nestle.in\/\"><b>Nestl\u00e9<\/b><\/a><b>:\u00a0 <\/b><span style=\"font-weight: 400;\">Ah, Coffee! I mean who doesn&#8217;t know about Nestl\u00e9? It&#8217;s a well known and addressed brand globally. It has establishments in 187 countries. Nestl\u00e9 described it&#8217;s digital transformation has increased its trade operating sales margin from 16% in 2016 to approximately 18.5% in 2020. Nestl\u00e9 also admitted that the rise of digital and online shopping has affected the market positively.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/www.absolut.com\/en\/\"><b>ABSOLUT<\/b><\/a><b>:\u00a0 <\/b><span style=\"font-weight: 400;\">Absolut is one of the greatest vodka producers to exist. It was founded in 1987 by <\/span><a href=\"https:\/\/en.m.wikipedia.org\/wiki\/Lars_Olsson_Smith\"><span style=\"font-weight: 400;\">Lars Osslon Smith<\/span><\/a><span style=\"font-weight: 400;\">, in Ahus, Sweden. So far, Absolut is one of the most notorious and attention-attracting eye campers in the marketing department. Absolut is one of the first brands to embrace the Direct to Consumer business model.\u00a0 They quickly recognised the benefits of interacting with consumers.<\/span><\/li>\n<li aria-level=\"1\"><a href=\"https:\/\/www.covergirl.com\/\"><b>CoverGirl<\/b><\/a><b>:\u00a0 <\/b><span style=\"font-weight: 400;\">CoverGirl is a cosmetic brand founded in the United States, in the year 1961. It is one of the greatest cosmetic brands around the world. In the year 2018 CoverGirl decided to go Direct to Consumer, by launching a 10000 sq ft &#8220;experimental makeup playground&#8221; in Times Square. CoverGirl has also launched an e-commerce website, which has made it easy for them to understand their consumers&#8217; needs using various algorithms and data tracking.<\/span><\/li>\n<\/ul>\n<h2 id=\"conclution-and-future-growth\"><b>Conclusion and Future Growth<\/b><\/h2>\n<blockquote class=\"blockquote\"><p><strong><i>\u201cBusiness leaders are scrambling to adjust to a world few imagined possible just a year ago. The myth of a borderless world has come crashing down. The world of digital retailing has opened doors to various opportunities.\u201d- <a href=\"https:\/\/hbr.org\/2017\/07\/globalization-in-the-age-of-trump\">Harvard Business Viewer\u00a0<\/a><\/i><\/strong><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">If you want to gain control over your brand&#8217;s reputation and understand your consumers better, we suggest you invest in making your own D2C website. After all, consumer satisfaction and maximizing profit are the primary goals of doing a business.<\/span><\/p>\n<h2><b>How can aTeam help?<\/b><\/h2>\n<p><img loading=\"lazy\" class=\"blog-img-left aligncenter wp-image-8958 size-full\" src=\"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-content\/uploads\/2021\/02\/aTeam.jpg\" alt=\"aTeam\" width=\"1600\" height=\"621\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The web development process involves more than just designing and coding. aTeam caters to every aspect of the client\u2019s requirements, at each stage, and understands all the fundamentals, including technical documentation, functional requirements and user stories, which is why our clients trust us.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">We will guide you through the process and help you find the right platforms for your business &#8211; offering many options at your disposal with full-scale <\/span><a href=\"https:\/\/www.ateamsoftsolutions.com\/beta\/ecommerce-app-development\/\"><span style=\"font-weight: 400;\">eCommerce solutions<\/span><\/a><span style=\"font-weight: 400;\">. Reach a bigger clientele, a huge customer base, increase your potential revenue, and gain success with the right development partner.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Our team looks forward to serving and helping you achieve your business objectives.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Talk to our expert today!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retail is a consumer-driven sector. Every now and then a new trend changes the structure of the aggregate market as it is influenced by consumer habits and behaviour. The retailers are always trying to decode and function accordingly. Before moving on to how Direct to Consumer, a breakthrough trend, has changed the market, Let&#8217;s understand [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8908,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[822,9,8,10],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/posts\/8903"}],"collection":[{"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/comments?post=8903"}],"version-history":[{"count":0,"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/posts\/8903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/media\/8908"}],"wp:attachment":[{"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/media?parent=8903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/categories?post=8903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ateamsoftsolutions.com\/beta\/wp-json\/wp\/v2\/tags?post=8903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}