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D2C Business Model | What Is Direct To Consumer And Why You Should Embrace D2C

D2C (Direct To Consumer) is a growing business model. Learn through this video what is direct to consumer, why are more and more start-ups and big brands embracing the d2c business model strategy and why you should consider a d2c strategy as your main business model if you're planning to launch your company. D2C business model is a sales strategy that consists in selling items directly to customers without the use of middlemen like wholesalers or retailers. This can be done in several ways: the most popular one is by a headless eCommerce website, as this is cheap and fast to implement. But there are also examples of larger companies like Nike or Apple, who also have physical direct to consumer stores, where only products of their brand are being sold. There are some clear benefits of adopting a D2C business model: #1. You get higher margins. #2. It gives the brand end-to-end control. And #3. Better customer relationship. That’s why every day more and more companies are shifting towards a D2C marketing model. In fact, D2C online sales in US grew from 76 billions dollars in 2019, to a 129 billion dollars in 2021, and they are expected to reach a value of 175 billion dollars by 2023. With services like Shopify or Wix, practically anyone with a product can start a D2C business online. This is essentially how companies like Dollar Shave Club, Blue Apron or Daily Harvest started their journey. For example, if Dollar Shave Club would have followed the classic approach of selling via retailers, it would have been practically impossible to get any shelf space next to giants like Gillette. But by running a D2C business model, the company now had a fair chance of competing against Gillette, and eventually growing the company to a value of over one billion dollars. TIMELINES 00:00 - Intro 00:20 - What is direct to consumer? 00:50 - D2C business model benefits 01:41 - D2C business model growth over time 02:04 - Why D2C is growing so much #D2C #DirectToConsumer #D2CStrategy

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