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Major brand manufacturers have long been reliant on selling through retail channels and have largely avoided selling directly to consumers. The costs of setting up logistics to support physical stores was the main deterrent for those even with the largest operating budgets; however, now with the growth of digital commerce there are many new ways in which brands can easily sell directly to consumers. Brands need to capitalize on this channel as U.S. e-commerce sales are expected to grow by 53 percent to $523 billion by 2020.
Selling direct-to-consumer (DTC) for a brand manufacturer has many benefits, including incremental sales, new consumer touch points and most importantly, owning the entire consumer journey from awareness to product delivery.
Despite the numerous benefits, companies often worry about the impact that selling DTC will have on sales at retail channels. There are clear distinctions, however, between selling directly and selling through channel partners, and understanding the potential benefits of doing both simultaneously will allow brand manufacturers to make informed decisions regarding a multi-channel retail strategy.
The ultimate goal of selling DTC is to build brand image and loyalty by offering an exceptional and authentic shopping experience at each and every touch point of the customer's journey.