What is Direct to Consumer or D2C? Meaning, Advantages, Disadvantages, Tips and Examples (Video 235)

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Direct to Consumer refers to the process of selling products and services directly to the customers without the help of any intermediary or middlemen.

The direct to Consumer process is mostly applicable in online business where the customers can place their orders directly with the brand.

What is Direct to Customer?

D2C companies use several distribution models like direct shipping to customers, collaboration with retailers and pop-up shops, The D2C organizations are not dependent upon retail outlets for publicity.

Direct to Consumer Market

- The D2C market is an ever-growing market with an expected growth rate of 19.2% in 2021.

- The Direct To Customer purchase Index has projected that 90% of the consumers will be purchasing at least once in the next five years.

Advantages of Direct to Consumer

- D2C brands have maximum control over brand messaging, customer service, and regulations
- It is easy for D2C to access simultaneous data.

- It is easy to build and maintain a strong customer relationship because of direct transactions between the customer and the organization.

- Brands can create customizable experiences for the customer.

- Reach is higher because of the limited marketplace.

Disadvantages of Direct to Consumer

- Privacy and data security is a concern in the online business and this creates a scenario for high risk.

- Managing and coordinating the supply chain can become difficult.

- D2C business offers free trials and discounts and if the customer cancels the product at the last minute after using the free trial it becomes a problem for the brand.

- A D2C model requires expertise in various areas and hiring an experienced workforce takes time and money.

Direct to Consumer (D2C) Tips

- Make the everyday items accessible and affordable
- Build a model based on subscription
- Make it easy for customers to make a choice
- Create an easy product return policy
- Collaborate with celebrity influencers and micro-influencers
- Reward customers for loyalty and advocacy
- Create videos that have the potential to turn viral
- Encourage user-generated content
- Start aggressive SEO campaigns
- Fulfil promised customer services
- Be a part of the community
- Use YouTube ads, Instagram ads, and Facebook marketing
- Use fulfillment companies and intermediaries

Direct to Consumer Examples

1. Casper
2. Harry’s
3. Netflix

This video is on Direct to Consumer and it has the following sub-topics.

Time Stamps

0:00 What is Direct to Consumer or D2C?
00:21 Definition of Direct to Consumer
00:47 What is Direct to Consumer?
01:17 Direct to Consumer Market
01:35 Advantages of Direct to Consumer
02:32 Disadvantages of Direct to Consumer
03:30 Direct to Consumer (D2C) Tips
04:39 Direct to Consumer Examples