CROSS-BORDER ECOMMERCE

DIRECT TO CUSTOMER

Direct-to-consumer brands are services or products that are:

• Financed,
• Designed,
• Manufactured,
• Promoted,
• Distributed and
• Sold

By the same company. No middlemen involved.

 

(D2C, DTC) Direct to consumer brands have created a new methodology for eCommerce success which is taking their products right to their buyer. Direct to consumer is a term that means when brands sell directly to their end customers without selling through a retailer, distributor, wholesaler or other outlet.

 

Additionally, the consumers want to buy directly as they want better deals. Chinese manufacturers are in the most ideal position, often without knowing this.

As they only can offer:

Better Design, Better Quality, lower price.

Western brands cannot do that, as they might have too many people in between and cannot control their OEM as Chinese OEMs.

 

Trends in 2019 for DTC where:

• Online and offline brands are blending
• Traditional retailers are moving into DTC with the help of big data
• DTC brands are on the move to own categories
• DTC brands are embracing Amazon as a partner
• DTC agencies are launching their own brands

 

Key reasons why Chinese CBE should adopt DTC are:

• Better Understanding of the Customer
• Create a Better Customer Experience
• Build Brand Relationships with Consumers
• Give Consumers What They Want

 

If you want to know some DTC success stories like:

• Caspar
• Dollar shave club
• Harry’s
• The Honest company
• Soylent
• Bonobos
• Barkbox

 

Read more here on:

• How Casper sold $100M in mattresses by limiting choices
• Why rolling back razor evolution got Harry’s 1M customers in two years
• The simple, unadorned sneaker that made Allbirds a $1.4B company
• How Bonobos turned one good pair of pants into a $310M business
• How BarkBox built a $150M+/year company with one simple box
• The pair of shorts that helped Chubbies become a $40M/year business
• The engineering problem that pushed Bombas to $100M in annual revenue

https://www.cbinsights.com/research/direct-to-consumer-retail-strategies/

 

 

Top reads (put into insights0

https://www.retaildive.com/news/the-5-biggest-dtc-trends-of-2019/563613/

https://www.scalefast.com/blog/why-dtc-ecommerce/

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