Post by account_disabled on Jan 22, 2024 4:38:13 GMT
The Ukrainian clothing brand for girls SUZIE released its first dresses more than 15 years ago. Since then it has earned an excellent reputation and SUZIE products can be found in stores across the country. But for years it was mostly wholesalers, not the children's parents, who knew about this reputation. Low brand awareness among consumers hindered business development and created serious risks. In 2020, such risks “fired” loudly. Due to the pandemic, businesses targeting retailers were disarmed and needed new sales channels, without the help of boutiques and shopping centers. The past year was a moment of triumph for all forms of e-commerce and the direct sales model (Direct to Consumer, D2C). For some manufacturers (such as SUZIE), direct sales have become not just a curious tool, but practically the only way to continue working. New technologies provide an attractive opportunity for manufacturers to sell their products by bypassing retailers and intermediaries.
But without the right approach and mindset, a D2C launch can turn into a classic “budget drain” for a company. When launching direct sales, it is important to keep the context and perspective of this strategy in mind. This will help avoid a number of problems that hinder successful D2C. Three problems with entering D2C Three problems with entering D2C 1. Channel conflict Taking a too-narrow approach to D2C creates internal competition between sales channels within a company, which can undermine the potential benefits of launching a new model. Ideally, an omnichannel approach should be formed: online and offline should complement each other. Often this requires modernizing logistics, establishing digital infrastructure, and even slightly restructuring retail. 2. Wro B2B Email List ng metrics It is not always possible to evaluate D2C work by the same standards that businesses are used to evaluating traditional sales channels. In short, profit is not the most important thing here, especially in the first stages. A typical mistake of some companies is to abandon or completely close this direction if it does not produce quick results. 3. Lack of consumer knowledge Unfortunately, it’s not enough to simply add a “Buy” button to your website and wait for an influx of orders.
For D2C sales to be successful, a company must feel its client very well and surround him with care. Creating a comprehensive and adequate portrait of a consumer is not easy; this requires competent data collection and work with it. It is impossible to establish successful e-commerce marketing without CRM and data analysis tools. How to avoid problems with D2C launch How to avoid problems with D2C launch It is important to remember that the consumer does not think about supply channels and the intricacies of marketing. He just wants to purchase the product he needs in the most convenient way. Let’s say, try on a shirt while walking in a shopping center, and buy it later through the website. It is better to think about solutions to D2C problems from this perspective. 1. Encourage cooperation rather than conflict. There is no need to create a competitive atmosphere around the D2C direction; it cannot and should not compete with traditional sales channels. The pursuit of indicators and competition here will definitely hinder cooperation between departments, and therefore the development of the company as a whole. Direct sales tools (website, application, etc) are a source of invaluable knowledge about consumer tastes and behavior. D2C discoveries and developments often provide the basis for profound business transformation.
But without the right approach and mindset, a D2C launch can turn into a classic “budget drain” for a company. When launching direct sales, it is important to keep the context and perspective of this strategy in mind. This will help avoid a number of problems that hinder successful D2C. Three problems with entering D2C Three problems with entering D2C 1. Channel conflict Taking a too-narrow approach to D2C creates internal competition between sales channels within a company, which can undermine the potential benefits of launching a new model. Ideally, an omnichannel approach should be formed: online and offline should complement each other. Often this requires modernizing logistics, establishing digital infrastructure, and even slightly restructuring retail. 2. Wro B2B Email List ng metrics It is not always possible to evaluate D2C work by the same standards that businesses are used to evaluating traditional sales channels. In short, profit is not the most important thing here, especially in the first stages. A typical mistake of some companies is to abandon or completely close this direction if it does not produce quick results. 3. Lack of consumer knowledge Unfortunately, it’s not enough to simply add a “Buy” button to your website and wait for an influx of orders.
For D2C sales to be successful, a company must feel its client very well and surround him with care. Creating a comprehensive and adequate portrait of a consumer is not easy; this requires competent data collection and work with it. It is impossible to establish successful e-commerce marketing without CRM and data analysis tools. How to avoid problems with D2C launch How to avoid problems with D2C launch It is important to remember that the consumer does not think about supply channels and the intricacies of marketing. He just wants to purchase the product he needs in the most convenient way. Let’s say, try on a shirt while walking in a shopping center, and buy it later through the website. It is better to think about solutions to D2C problems from this perspective. 1. Encourage cooperation rather than conflict. There is no need to create a competitive atmosphere around the D2C direction; it cannot and should not compete with traditional sales channels. The pursuit of indicators and competition here will definitely hinder cooperation between departments, and therefore the development of the company as a whole. Direct sales tools (website, application, etc) are a source of invaluable knowledge about consumer tastes and behavior. D2C discoveries and developments often provide the basis for profound business transformation.