If you observe closely, more Direct-to-Consumer (D2C) start-ups are mushrooming during this global pandemic and we are actually not surprised at the growth rate.
With the Malaysian Ecommerce marketplaces approach the mainstream mainstream market, we foresee D2C will soon lead to another boom in the Ecommerce industry.
You do not need to look far, some of the most popular home brands including Oxwhite and Joey Mattress are prospering through this way of reaching their customers.
Bypassing the middleman and getting in touch directly with the audience allows businesses to obtain a better understanding of their customers’ needs and listen wholeheartedly to the feedback from them.
Subsequently, this improves the effectiveness of marketing campaigns from these digital natives, as they manage to establish data-driven, 2-way relationships between the brands and their consumers.
Other than what we mentioned above, you might wonder what exactly is all this Direct-to-Consumer buzz about?
If you have a good idea for your brand and you know exactly how this can bring an impactful shift in your customer’s experience, it is amazing since you have the first criteria fulfilled.
However, we want to be realistic and let you know it takes more than just an initial spark to sustain a D2C brand. Everyone is doing it now – so you have to do it right.
Understanding Direct-to-Consumer (D2C)
Let’s talk about how Direct-to-Consumer is becoming increasingly important to the Ecommerce landscape today. Yes, we know many would argue that D2C is not something invented lately, in fact no one says about how it is a new start-up route to take.
We are putting this across as an alternative which is getting more accessible by day with the help of proper utilization of various social media platforms and of course, the internet itself.
Back in the 2000s, we would be thinking someone is unrealistic when they want to start a business with less than RM100,000 capital. Today, you can simply kick start a business at RM10,000 and still have sufficient cash flow.
It is made possible because there is massive support from the youngsters and millennials in this digital age. At the right timing, you might even gather sufficient support through global crowdfunding platforms like Airfunding, Gofundme and Kickstarter. Locally known crowdfunding websites include 100% Project, Mystartr and Ethis.
The Ups and Downs for A Digital Brand
We cannot help but to agree that many D2C startups make digital business look easier than it is. Behind the sleek and minimalistic outlook that captures the attention of millennials, you must have been wondering how these youthful millennial’s touch and witty lines in marketing campaigns that always manage to get you.
You are not alone in thinking how the consumers actually resonate to what the brand has to say and why they come to appreciate what is presented right before them.
It is all about knowing and creating the meaningful experience that humans naturally lean towards. Here’s the good ol’ pros and cons you might want to know, so that you can place serious consideration if you are tempted to jump onto the bandwagon of starting your very own digital business:
Pro:
- A digital business can definitely get launched a lot quicker than your brick-and-mortar business. From having your core business idea and registering your business with SSM to importing your products from dropship apps like Oberlo and SaleHoo, you can get your business online within a matter of months, sometimes even weeks!
- You have full control to scale at the speed you can handle. If everything is going well, that’s absolutely amazing. If you need more time for your stocks to come in, you can opt to build some hype for the restocking and maintain your presence on social media so you do not need to be overwhelmed.
- You know all the data collected through the engagement. In the world of Ecommerce, this information is precious as it allows you to understand what works in appealing to your target audience, and what doesn’t. The list goes on as you get to know them better, and it is going to be highly beneficial to your business in future.
Cons:
- Real fierce competition. As expected, many are hopping right into digital business when they learn about the perks. However, your brand will not succeed overnight, nor a website with social media platforms can bring you money. Your brand identity has to be solid and strategic enough to enable you to survive in the Ecommerce landscape today.
- Inability to adapt will cost you a lot. You are not a huge fan of social media? Unfortunately, your audience like it. You have to accept that D2C and social media goes hand-in-hand. It is practical to plan, manage and harness these platforms so that it will be one critical spot where you can grow your very own group of brand loyalists in future.
- If you fail to prioritize customer experience, your brand will not go far. It is not only about putting out good marketing or great products as every move is being observed. If something you deliver does not match up to the expectation of feeling as #awesome as it should be, such mediocrity will make your brand into one of the forgotten ones.
How To: Commerceplus enables manufacturers, retailers and Brand owners the Ultimate Direct-to-Consumer (D2C) Solution
As the Ecommerce enabler, we proudly present to you our one-stop solution, especially designed for brands that are intending to explore D2C options, or they are looking for some assistance in improving their digital businesses.
As you can tell from our approach, we have categorized our services which target to assist your products or retail company to establish a straightforward, data and tech driven.
We proudly introduce you to the Commerceplus Direct-to-Consumer (D2C) solution, which aims to assist consumer products and retail companies establish a direct, data- and tech-driven two-way relationship between their brands and consumers, stakeholders and influencers.
Furthermore, it can provide the support to curate desired experiences, smooth transactions, great communication with different collaborations across multiple channels.
The Commerceplus team will provide an open, full-stack platform to build your D2C capabilities because we know exactly how to speed things up for your business in the right way. Our solution is uniquely tailored just for you and here is what it can do:
- Give your business the boost it needs for a profitable growth, even in the traditional channels.
We did this through our collection of detailed and rich consumer insights which has accumulated over the years of experience as an Ecommerce enabler, and our clients find these extremely helpful in expanding their business. - Promote your brand the right way.
Everyone understands the importance of brand presence, therefore this will focus on developing stronger brand equity in all possible ways. The necessary execution involves giving ample amount of support to the end-to-end customer experience and creating engagement across different touchpoints. - Provide value added service with the aim to remain cost effective.
In difficult times like this, we wish to contribute to the sustainability of businesses. This solution will help in reducing the channel costs and improving your business’ margins as we’d want you to minimize the usage of retailer discount as a strategy. - It exploits the full potential of innovations .
This can be crucial in growing your business, as it successfully stays relevant in this fast-paced digital world. Besides, this solution also comes with the flexibility to test some of your new products without compromising your shelf space for the existing products. - As mentioned, the proposal you receive is customized to you and your business.
It is created to meet your expectations as the personalized value proposition will be able to expand your customer base geographically. We believe that diversity will be absolutely useful in the time to come.
Our Final Thoughts
We hope this article has provided you some rough ideas on D2C and ultimately, we want you to know that we understand how much of a dilemma you are undergoing so you need a little bit more time to decide whether to take the leap of faith, or to stay put because you have more questions about getting into D2C.
Either way, we are happy to have a little chat with you if you need someone to talk to, click here to get in touch!