brands are taking control by going direct
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External and Internal pressures
With the rise of online shopping, consumers today expect to be able to purchase directly from the brands that they love online.
The power of using data• Product CatalogRich product content help retailers to increase their sales
• Product Ratings and ReviewsLooking for feedback about the role the company plays
• ConsumersA complete vision of your consumer
Why pay more for buying direct?• A natural source of information is the brand manufacturer’s
website, as consumers trust the brands they know
• Shoppers typically conduct research online before making a decision to buy- discovery phase
• Customers are often willing to pay more to buy direct from a brand manufacturer because they know they will receive an authentic product that is exactly as ordered.
Control of brand and pricing• In several cases, the pressures faced by most brands from
competitors, other retailers and marketplaces can often result in a lack of brand control and product pricing.
Why go direct?• Foster a relationship with consumers• Better understand consumers• Purchase is the next step of research• Gain market share across channels• Build a stronger brand
DTC strategies• FacilitatorFocus on lead generation and customer experience
• Other distribution channelsTo focus on a digital commerce experience without disrupting your traditional distribution channel
• Compete with a distribution channelFocus on a revenue-generating digital commerce experience that offers consumers the best price for what they are looking for
Dealing with channel conflict
1. Selling direct does not mean abandoning existing distribution channels
2. Take advantage of it devising strategies that are beneficial for all parties involved (brands, dealers, retailers, …)
A successful DTC business should be built on a strategy that supports current distribution partners and increases revenue across all channels, rather than prioritizing one over another.
From manufacturer to retailer• Brand manufacturers who sell online do not just need to
become online merchants; they need think and act like retailers.
• Plan and prepare for operational differences, different set of internal skills, processes and infrastructure.
Key takeaways• Consumers expect to buy direct (and online) from the brands he
love• Big data is the new competitive advantage• Consumers who trust and love the brand can be frustrated if they
cannot buy direct online• Better control of brand message and product pricing• Define your DTC strategy and be prepared to deal with channel
conflict• Prepare the backend infrastructure and logistics to handle the direct
channel
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