Direct-to-consumer (D2C) is a strategy in which a brand or manufacturer promotes and sells its products directly to consumers.

It does this by cutting out retailers and other intermediaries.

The number of businesses that independently manufacture, promote, sell, and ship their own products is rising. This growing popularity is rapidly changing the business landscape.

Read our blog the 2020s promise to be the decade of direct to consumer to find out more.

Brands and manufacturers of all shapes and sizes are setting up direct-to-consumer sales channels. Well-established global brands such as LEGO, Dior, Heinz and PepsiCo are investing in D2C. And so too are thousands of smaller producers, all of whom can see the tangible benefits, greater profits and new found freedoms of cutting out the middleman.

There are also a rising number of digital start-ups, much-loved by millennials, such as mattress brand Casper, fashion retailer Bonobos and razor firm Harry’s, which are relying solely on the D2C model to disrupt the market.

What are the benefits of a direct-to-consumer strategy?

With the right planning and systems, launching a new direct-to-consumer sales channel can be a relatively quick and inexpensive thing to do – and has many benefits:

  • It makes brands far more customer-centric. A direct relationship with their customers provides brands with insights into consumer behaviour that they never had access to before.
  • It helps to develop and enhance products that are fine-tuned to their customers needs.
  • It enables brands to design customer communication programmes that personally appeal and engage directly with their audience.
  • It allows companies to tweak their brands so it appeals and resonates with their customers on a practical and emotional level.
  • All of this brings customers and brands closer together, increasing customer satisfaction, sales and profit margins.

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Use the ROI calculator to find out how much money you could save by using EDI to process your documents.

Select the number of Trading Network you trade with, followed by the number of Orders, Advanced Shipping Notes (ASNs) and other transaction documents you process monthly.

Based on the input we will show an indicative saving and recommend an EDI solution that fits your requirements.

How EDI can help smooth the transition to a Direct-to-Consumer model

Removing intermediaries such as retailers doesn’t come risk-free, but adopting the right digital tools, such as electronic data interchange (EDI), can ensure the switch to D2C is successful.

Cloud-based EDI solutions can help brands successfully switch to D2C by automating and speeding up critical supply chain processes, dramatically increasing document accuracy and providing real-time status of stock and inventory.

You may also be interested in How EDI can help with this shift in consumer behaviour

If you feel you would benefit from cloud-based EDI from Transalis, why not talk to us? You can reach us on 0845 123 3476 or +44 1978 369 343 (for international callers), or email us on sales@transalis.com.

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