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D2C (Direct-To-Consumer) Model Explained!

With the pandemic changing the way we live, online ordering of almost everything is the new trend in town. Even for brands, in face of the disrupted supply chain, logistics etc. reaching the consumers directly via online platforms has been the sole factor that has kept them afloat in these tough times. And now with the COVID-19 pandemic gradually resting, D2C Models of business have taken the center stage. So here is everything you need to know about the D2C model of business.

What is a D2C business model?

The D2C Business Model // Credits: Channel Engine

D2C or Direct-To-Consumer is a form of business setup, wherein a company produces a particular product in its own facility, and then distribute it via its own channels, ranging from social media to retail stores.

Companies adopting the Direct to Consumer business model, not only manufacture, but also market, ship and sell their offerings without the interplay of middlemen such as wholesalers, distributors, and retail stores. Thus, in a D2C model, middlemen are literally cut off.

The Direct to Consumer Advantage

The Direct Dealing Benefit

Now that you know what a D2C model is, you must be wondering why big names are now moving towards the D2C way. Well, firstly because of bettering monitoring over the brand image as well as the offerings. Since in a conventional business set-up, companies aren’t able to monitor their brand image and products once they hit the market, the D2C model bridges this gap and lets the company know how well their brand is actually received, helping them see through the post-purchase evaluations.

Secondly, a D2C set-up can help big companies reach their consumers in a faster and more transparent as well efficient manner. Moreover, a D2C setup can also help the company bring in new and experimental products directly to the consumers in small quantities, which can later be adopted by the company based on the response.

Last but surely not least, a D2C model helps build the brand image and trust, since the consumer can directly know what the company offers and for how much. No hidden costs and commissions.

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The D2C Transition

"Mercedes

India is one of the fastest-growing e-commerce markets in the world. And during the COVID-19 Pandemic, things have only taken pace. During the pandemic, consumers have become heavily dependent on online platforms for their everyday needs. This has led to several brands coming up with their individualistic e-commerce platforms.

And much like other industries, the automobile industry is no different. With big names like Mercedes Benz, officially shifting to the D2C model, the future of automobile sales is surely in for a change.

So this was all about the D2C model. Stay pinned to the GoMechanic blog for everything automotive.

Also Read: Mercedes Benz Switches To A D2C Sales Model

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Sankul Nagpal
Penultimate student of Law presiding over the courts of creativity

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