To better understand their consumer, manufacturers collect statistics and sponsor sociological research. But there is also a much shorter and more productive way, opened thanks to the Internet. Direct interaction with consumers allows you to save costs, quickly navigate the trends, and so on. This approach is called D2C – Direct to Clients.
Today, the product sales to consumers process has become a truly high-tech industry.
With an abundance of offers on store shelves in developed countries, marketers have to resort to behavioral psychology and mind control technologies. Thus, the process of selling goods is more like hunting a well-equipped professional hunter for peacefully grazing roe deer.
For sure, each of us had experience of spontaneous purchase of goods, which turned out to be absolutely unnecessary, although yesterday, having looked through the next advertisement, we were convinced that we should have time to buy it.
Overburdened budgets of modern marketing and advertising are clearly visible on the statistics of advertising costs in social networks and search engines. Last year its turnover amounted to $625 billion
, the cost to advertise on social media has risen 4x in 5 years; on Facebook – 9x. This has led to consumer fatigue and increased distrust of annoying advertising, aggressive marketing, and as a consequence, the abandonment of brands that use such sales technology. It creates a niche and new opportunities for a more friendly, targeted interaction between the manufacturer and the consumer. And a new model of developing business direct-to-consumer (D2C) comes to the market and growing rapidly
Direct-to-consumer (or D2C) companies organize the whole process without relying on traditional stores, distributors or other intermediaries. It makes the whole supply chain much more cost-efficient than traditional consumer brands. Moreover, D2C model allows to completely control over the whole value chain.
D2C model makes companies more flexible with distribution and marketing models. They can provide consumers with a wide range of shipping options (from shipping directly to consumers to cooperation with offline retailers to opening pop-up shops). Independence from traditional retail stores, dramatically reduces the costs.
The D2C model is a new form of direct interaction in the consumer society, overloaded with data, technologies and offers. D2C is a great example of how modern technologies can help to make the right choice for the buyer and to understand exactly what a particular consumer expects from him.
A survey of American Internet users showed that 40% of US internet users
expect D2C brands to account for at least 40% of their total purchases.
As a rule, the D2C model is used by young companies, private labels, not known in the world. The only question remains. How can we trust these companies?
And this is where blockchain technology integration into the D2C business development model comes in handy. Blockchain, as a technology that eliminates intermediaries and increases the efficiency of the supply chain, also adds credibility to new companies. The integration of blockchain technology into the D2C model takes interaction with the end user to a new level of relationships built on trust.
One of the examples of the D2C marketing model is 1000 Ecofarms
, where the idea from seller to consumer implemented as best as possible. Here any food seller can set up their own store using their brand and directly sell their products to customers nearby who can find it thanks to a built-in map.
On this platform, manufacturers can interact with each of their customers, which is the key to D2C strategy
No middleman and transparency in the food industry is becoming increasingly urgent. However, many manufacturers here may face such problems in carrying out the entire supply chain, from quality assurance to payment.
There FCE tools
come to the rescue: they can be implemented and successfully applied on completely different platforms, both for large and small-scaled manufacturers.