The attitude toward direct-to-consumer (DTC) initiatives has changed almost overnight. Large consumer brands used to worry that such initiatives would create channel conflict and cannibalize the business—not to mention displease retail partners. Now they realize that the DTC approach allows them to collect valuable consumer data, personalize the experience, quickly launch and test new products, and grow the business. What’s more, as the pandemic has revealed, it aligns with the way many consumers want to interact with brands.
Today, companies don’t have to choose between DTC channels and retail partners. Instead, they just have to ensure that the DTC channel they establish adds to total growth. Consumer brands that are not already investing time to evaluate and improve their DTC capabilities need to start doing so immediately—or face losing market share to more nimble rivals. To help, we have codified a set of learnings for consumer brands to rapidly accelerate their DTC efforts and reap the benefits.
Our definition of DTC brands is expansive. It includes:
Given the rate of e-commerce growth, these companies must either quickly establish DTC capabilities or continue to build their existing functions. From December 2019 to May 2020, US e-commerce sales in the food and beverage category—long considered a laggard in the online space—grew by 67% year over year. [Read More @ BCG.com]
Your email address will not be published. Required fields are marked *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
Comment *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Δ
By Hannah King and Arin Aragona Plans for Kentucky’s medical cannabis program took a significant turn last week with the passage of House Bill 829 and the implementation of emergency…
By Steven Ascher and Anna M.Windemuth The unique status of the cannabis business — legal in a majority of states, but still illegal under federal law — creates a thorny…
By Courtney A. Hunter and Jessalyn H. Zeigler Demand for cannabidiol (CBD) products continues to climb, and the market has risen to the occasion. There is now a robust array…
Confidential documents obtained by THE CITY reveal how Chicago Atlantic Group became one of the biggest beneficiaries of the state’s legalization program. Last June, Gov. Kathy Hochul announced that a…