Why direct-to-consumer is becoming an important retail channel

What is your experience with direct to consumer? So far, the case of my company is absolutely successful.
Did you identify any specific pro or cons?

Direct to Consumer
Retail Channel
Direct Sales
Consumer Experience
Paolo Beffagnotti
5 months ago

5 answers


The first thing is - its profitable. As per a reports online consumer technology sales increased 19 percent in the first three quarters of 2017, propelled by a 34 percent increase in direct-to-consumer sales.

I think better customer satisfaction, more efficient inventory management, cutting third party supply chains, and higher profit margins are few more reasons.

Hitesh Mathpal
5 months ago
I agree with all your points. In the future more companies could adopt this. Will it be enough to close the gaps with the early adopter? - Paolo 5 months ago
True enough! - Lawrence 5 months ago
I agree with DTC does improve efficiency of inventory management! - Chun 5 months ago
Even JIT inventory management - Dr. David E. 5 months ago
Paolo Beffagnotti Early adapters will get the advantage for sure and if you see around, they are getting. Though, road is not very smooth ahead. - Hitesh 4 months ago
Early Adopters - If you Lead - U can bleed - Dr. David E. 4 months ago
agree Hitesh Mathpal - Paolo 4 months ago
Actually in case of direct sale to customer the quality of product of company and service method shall be judged and as per customer satisfaction he will keep and if product is not good that will be returned or exchanged easily and now this online business of sale direct to customer by company has become popular. - Er. Jangyadutta 4 months ago
OK, thanks - Dr. David E. 4 months ago
I think it is a MUST to have stragegy for big brands. - Maya 4 months ago
U can be low cost - u can be quality = both you CAN NOT be both! - Dr. David E. 4 months ago

In light of recent media reports following December (Christmas) sales, I would suggest returns could have a significant impact on profitability.

Craig Carden MBA MRes FCMI
5 months ago
Agreed. - Hitesh 5 months ago
Which were the hottest categories during the Christmas sales? any idea? - Paolo 5 months ago
Amazon publish their best sellers and given their dominance of the online market I would suggest this is a good starting point for the answers you seek - Craig 5 months ago
Good example about Amazon, yes it is definitely a good starting point - Paolo 5 months ago
Agree - Dr. David E. 5 months ago
Yes it will give more profit if product directly sold to customer by company. - Er. Jangyadutta 4 months ago
Happens every year - Dr. David E. 4 months ago

The most important point in DTC is the ability to build the brand relationship with the customer. This is vital as influencing the 1st customer to buy from a specific brand is challenging while retain and influence your customer to return and purchase again is even more difficult. Thus brand loyalty is an imperative part for big companies. DTC allows the company to transmit their brand’s story more effectively and relay their message more directly and potently to connect with consumers in a deeper level ensuring brand loyalty to generate a continuous revenue.

Lawrence Loy
5 months ago
It is true that DTC does allows the company to be more focus in the message transmission to their potential customer, but it is not the only way! - Chun 5 months ago
So, what other ways? - Dr. David E. 5 months ago
Focus on your brand to have a unique source for all your data - Paolo 4 months ago
Meaningless-sorry - Dr. David E. 4 months ago
Customer will know about brand quality and new changes so it will be easy in part of customer to get latest product of a company. - Er. Jangyadutta 4 months ago
Maybe; thanks - Dr. David E. 4 months ago

Question seems odd to me. Direct to consumer is a critical channel. For many companies, it's the primary channel. For everyone else, your ability to understand it may be the key to success.

Wendy Harrington
5 months ago
Agreed - Dr. David E. 5 months ago
It is possible and comfortable to perform in case of small business keeping company and customer relationship through direct marketing by customer choice. - Er. Jangyadutta 4 months ago
Direct Marketing - is not customer choice - Dr. David E. 4 months ago

In case of direct marketing with customer it   develop loyalty  with  brand or company in  targeted customer of  company to promote customer relationship which could be followed by data base that how many time particular customer purchasing the product and what is his requirement and how he will be satisfied. This is called direct marketing with company and customer relationship management having  database management marketing  possible in small-business company with  strategy  to expand  company service  with giving attention to aware  customers   about promotions on business,  new services and r products.

Er. Jangyadutta D
4 months ago
I give inaccurate info to CRM databases - Dr. David E. 4 months ago

Have some input?