What does DTC mean for your eCommerce approach and how can you deliver this globally?
The way we shop has changed dramatically in the past few years – global retail eCommerce grew 26% in 2020, 16% in 2021 and estimates suggest the global eCommerce market neared $5.5 Trillion in 2022, of which direct-to-consumer (D2C) eCommerce was a major driver.
For brand owners and manufacturers this has created great opportunities, as well as certain dilemmas about how to respond. We speak to many companies who want to embrace eCommerce, but perhaps lack the capacity or operational experience to make it profitable.
Our experience of working with a range of retail and manufacturing companies suggest eCommerce and D2C can be extremely profitable when certain factors are tightly controlled and considered. But this approach requires pragmatism and planning from the outset. Below we will consider some of these:
Differentiation: the barriers to entry are much lower in an eCommerce environment, which means differentiation is crucial. Differentiation for the sake of differentiation has limited value, but what we’re talking about is providing the customer with the best solution to their need, and being able to prove it. Can you prove it?
Data: it is important to have a measurable means of testing how your customer is responding during the different stages of their journey (your sales funnel). With traditional retail, you are blind to this detail – but in D2C or eCommerce, this is what will give you the visibility to make your model profitable and scalable. Do you know how to measure the different stages of a customer’s journey?
Long-term: eCommerce or D2C should be set up within a longer-term plan, to ensure it’s supportive and part of a sequenced growth strategy. In and of itself, it can only achieve so much. In support of a broader vision, eCommerce / D2C growth is an extremely powerful tool in an ambitious sales plan. Where does eCommerce fit into the bigger picture for you, and how is it supporting that?
Looking to grow your eCommerce and D2C offering into new markets, or even existing ones?
We can help you. From planning, to execution of eCommerce in global markets, through to retail partnerships…this is what we do, globally. Come talk to us.