{"id":23552,"date":"2020-07-03T13:03:22","date_gmt":"2020-07-03T11:03:22","guid":{"rendered":"https:\/\/www.deptagency.com\/?post_type=article&p=23552"},"modified":"2023-07-20T09:56:12","modified_gmt":"2023-07-20T07:56:12","slug":"how-to-launch-d2c-without-impacting-your-current-sales-channels","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-dk\/insight\/how-to-launch-d2c-without-impacting-your-current-sales-channels\/","title":{"rendered":"How to launch D2C without impacting your current sales channels"},"content":{"rendered":"
\n\t\n\t<\/svg>\n\t\t\t\n\t\t\tBack to all articles\t\t<\/span>\n\t\n<\/a>\n\t\tHow to launch D2C without impacting your current sales channels\t<\/h1>\n\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/picture>\n\t\n\t<\/div>
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\n\t\tLasse Rasmussen\t\t
\n\t\tManaging Director Digital Marketing\n\t\t\t<\/div>\n<\/div>\n\t
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\n\t\t\t\t\t3 July 2020\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n<\/div>\n\n
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\n\t\t\t\t\n\n\t\tDigital has shaken up the manufacturing industry and is re-shaping existing business models. No doubt a direct to consumer (D2C) route to market has been discussed in board rooms across the sector, and some have dipped their toe in. But it can be a tricky act to balance.\t<\/h2>\n\n\n\t\tWhile D2C strategies can provide a range of opportunities, they do go in-hand with risks. Historically, there was a clear distinction between B2B and B2C; manufacturers would sell their products in bulk to stores, distributors and resellers who would, in turn, sell on to consumers at a mark-up. Nowadays, digital technology means that manufacturers can be less reliant on their distributor network, as the potential to sell directly to end customers is a real possibility.\t<\/p>\n\n\n\t\tObviously, cutting out the middleman results in a higher margin and a direct relationship with the end customer, and all the data that comes with it; it\u2019s hard to develop brand loyalty and brand affinity if you\u2019re so distanced from your end customers. The opportunities are there, but there are key considerations to be taken into account, ranging from logistics through to customer experience. And how do manufacturers ensure they can still maintain a positive relationship with their existing sales channels?\t<\/p>\n\n\n\t\tFor manufacturers selling in bulk to stores, D2C can create a new sales channel to small and medium size businesses, increasing your market penetration. Creating an e-commerce platform enables your business to showcase the breadth of available products to all potential buyers, just as a catalogue would in a face-to-face meeting. It also puts your business in control of customer experience, enabling personalised purchasing journeys for each client. Ultimately, this provides your business with much wider customer data collection, data that your company is in control of.\t<\/p>\n\n\n\t\tD2C is so promising as it offers a new way of operating, designed for the digital age. Rather than following legacy models, businesses can build up an entirely autonomous sales channel, making full use of digital solutions. This includes every step of order fulfilment, but also new payment options available to businesses, such as subscriptions.\t<\/p>\n\n\n\t\tHowever, for already established businesses considering a shift to the D2C model, there are two major roadblocks. One, it is an untested operation. Can your business handle the logistical difficulties? Without some form of a D2C system already tested, it\u2019s impossible to know.\t<\/p>\n\n\n\t\tThe second challenge is maintaining a good relationship with current distributors. No business wants to fracture their currently healthy setup by taking a chunk of the business away from a current partner to apply an untested D2C setup.\t<\/p>\n\n\n\t\tThis is why businesses should adopt a\u00a0crawl<\/strong>,\u00a0walk<\/strong>,\u00a0run<\/strong>\u00a0approach.\t<\/p>\n\n\n\t\tThe approach aims to establish a proof of concept for D2C, without harming current operations or distributor relations. First, businesses learn to crawl with one D2C project. As we start to walk, the business can incorporate more areas of their operations, followed by more and more as we get up to running speed. This way, your can establish a framework that enables speed and flexibility.\u00a0\t<\/p>\n\n\n\t\tHow does this look in practice?\t<\/h2>\n\n\n\t\tMindful not to step on distributors\u2019 toes in establishing a D2C proof of concept, start by picking a market with very little to no distributor penetration. This could be a previously tough to reach market, a new audience segmentation found through a piece of audience data insight, or through the creation of an innovative new product offering.\t<\/p>\n\n\n\t\tIt is also well worth considering spinning up a new brand \u2013 something to distance your core brand and products that your distributors and resellers rely on from your D2C offering.\u00a0\t<\/p>\n\n\n\t\tA quick route-to-market is selling through Amazon, leaning on its huge market penetration and reliable logistics network. It\u2019s a low risk effort.\u00a0\t<\/p>\n\n\n\t\tAs a smaller test case, this is the time to get to grips with all the difficult new processes:\t<\/p>\n\n