In 2021 alone, the D2C market is expected to grow by 19%, which means that there are good reasons for keeping up with developments. All the while the business model continues its explosive growth in the US, the first D2C brands are really making their mark in Denmark. This applies not only to completely new brands, but also to established companies that develop D2C channels as part of their business.
As the name suggests, the model covers brands selling their products directly to customers through digital platforms - avoiding the shops and other retailers. The goal of a D2C channel is to cut unnecessary expenses from the value chain, but most of all, it's about creating a direct relationship between the brand and the customer. In traditional retail, brands outsource the customer experience to the retail level, but with the D2C approach, brands themselves have control over the entire customer experience. The approach creates good opportunities to work effectively with direct personalised communication and marketing.
Find a niche and do it better than conventional platforms
Most D2C brands choose to approach a very special niche with a product range that is limited to a single product category. Some even choose to opt for one single product. This means, among other things, that brands can aim very effectively at their target group.
Established B2B companies are also successful in developing such a D2C platform, setting new standards for their respective industries' contact with the end consumers.
A study by the English bank Barclays shows that even before the pandemic, developments in the UK were well underway: 73% of all companies in the UK answered that they sell one or more products from their product range directly to the end consumers. In 2014, the figure was 56%. The figures emphasise that not just born-digital start-ups are successful with the D2C business.
In our podcast below, you can hear the CEO of Camille Brinch Jewellery, Daniel Brinch, talk about their considerations as a D2C business, and Head of Digital i Kvadrat Marie Kronborg Ellemose's experiences with the B2B company's new D2C platform.
