D2C is the newest business model that allows the industry to get closer and closer to the end consumer. The term is derived from the English “Direct to Consumer”, which means “direct to the consumer”.
According to a report “ Industry Challenge in E-Commerce ”, the model emerged in response to changes in the current market.
This is because consumers are gradually becoming more adept at digitalization and using the internet in purchasing processes. Therefore, in order not to be left behind, the industry needs to adapt to the new scenario.
It is precisely due to the growth of e-commerce that the D2C model appears as a solution for industries to present their products and services to consumers.
There are no intermediaries here! The relationship occurs directly between manufacturers and end consumers. Therefore, the sale is said to be direct, carried out through the industry's own e-commerce.
According to the report, the D2C channel has been morocco whatsapp data used by 48.7% of industries. And more than 80% of these companies' online stores have been in operation for less than 4 years.
The model is recent and has been adopted as e-commerce advances to ensure increased opportunities in various sectors and areas of the market.
However, even though it is a new strategy, D2C, with the help of e-commerce, already represents over 2 digits in more than 40% of industries. This reinforces the great potential to boost business sales.
Therefore, the main advantages of Direct to Consumer are:
Industry closer to the consumer;
Increased opportunities;
More competitive processes;
Continuous evolution.
Despite the great potential for development of the business, there are still major challenges regarding the application and adaptation of this model, given that the sales process in industries tends to be consolidated in physical contact.
What are the differences between B2B, B2C, B2B2C AND D2C?
To understand D2C a little better, it is necessary to reinforce some differences between other business models.
B2B (Business to Business), as you already know, refers to the sales relationship between one industry and another business. In other words, a business focused on the corporate market.
In contrast, B2C (Business to Consumer) refers to businesses that carry out the sales process with a focus on the end consumer. The main example of this model is retail.
In B2B2C (Business to Business to Consumer), the industry sells products to the end consumer through marketplaces. Here, the end consumer understands that they are purchasing the product from the first company, even though they are doing this process through another company.
Therefore, D2C is the model that combines the possibility of the industry selling beyond another organization and, thus, directly reaching the end consumer. Although it draws from the B2C source, it differs from it in that it does not require an intermediary.
In most cases, when the focus is on the consumer, a company sells so that another company can resell it. With D2C, there is no retailer or wholesaler to supply the product. Here, the industry itself makes it available through a virtual channel.
But remember that D2C does not exclude B2C! It is completely possible to use it alongside your current model. In other words, for example, you can continue to partner with resellers and still have your own sales system.