A D2C (direct to customer) firm is basically a great marketing company. Once you\u2019ve identified a good product and a USP you want to sell, the D2C model can be employed to go all out and market wherever possible. There are some brands going full stack and manufacturing as well but it\u2019s a long shot! Most of the brands are companies that are trying to figure out a way to create a splash in the consumer market and deploy tactics to acquire more customers. <\/span><\/p>\n The nature of commerce has drastically shifted owing to the emergence of digital technologies and changing consumer behaviour. The pandemic has also given a huge push to buying moving online first and expecting same day delivery or next day delivery. Consumers no longer want to visit a store first but are comfortable ordering online and go for returns if there is a need to exchange. In 2020, the last mile delivery market stood at $40 billion globally and is <\/span>growing annually at 9%<\/span><\/a><\/span>. <\/span><\/p>\n Amidst these developments, one key emerging trend is the rise of D2C Brands<\/span><\/a>. Amazon brought in the online revolution and there are several other giant marketplaces- be it for retail or food or grocery. Once the consumer became used to buying online, the marketplaces like Amazon are becoming a monopoly and continuously increase the commission for players selling on the marketplace or aggregator apps. <\/span><\/p>\n Even in cases of food delivery apps, restaurants are now being charged 20-30% commission and this eats up heavily into their margins. This has led to the inevitable need for brands to become self reliant in terms of deliveries and own the entire customer experience. But is it that easy? <\/span><\/p>\n For any D2C brand, investing in deliveries and having their own fleet to deliver is an uphill task. Having one\u2019s own fleet and delivering makes sense for an enterprise that has multiple brands but if every product starts having a supply chain of its own, it becomes incredibly difficult for the end customer. We are conducting a Twitter Event currently where these discussions are going on:<\/span><\/p>\n Announcing the #LetsTalkD2C<\/a> campaign! Inviting D2C brands, CSCOs, Data Scientists, Logistics Delivery Experts, and Journalists covering the space! October 5-8, stay tuned on #LetsTalkD2C<\/a> by LogiNext #LastMileDelivery<\/a> pic.twitter.com\/Uc6MnzEtsj<\/a><\/p>\n \u2014 LogiNext (@LogiNext) October 4, 2021<\/a><\/p><\/blockquote>\nWhat\u2019s the big fuss around D2C<\/b><\/h2>\n
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\n Pros and Cons of a Direct to Customer (D2C) Business Model<\/span><\/td>\n<\/tr>\n \n D2C Model<\/span><\/td>\n Marketplace Model<\/span><\/td>\n<\/tr>\n \n Owned customer experience<\/span><\/td>\n Brand gets lost in the marketplace<\/span><\/td>\n<\/tr>\n \n High cost of customer acquisition<\/span><\/td>\n Easier acquisition due to available reach<\/span><\/td>\n<\/tr>\n \n Control over pricing of the product<\/span><\/td>\n Inevitability of entering price wars<\/span><\/td>\n<\/tr>\n \n Additional cost and hassle of logistics<\/span><\/td>\n Logistics and delivery is taken care of<\/span><\/td>\n<\/tr>\n \n Customer comfort is yet to be built<\/span><\/td>\n Majority of customers are now used to marketplaces<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Last Mile Delivery Logistics is a Tough Nut to Crack<\/b><\/h2>\n
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