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Q. As direct-to-consumer (D2C) brands continue to disrupt traditional retail, do you think this model will reshape the entire marketing landscape, or are we seeing a temporary shift due to changes in consumer habits?
A. Yes, the direct-to-consumer (D2C) model is going to impact marketing in several ways:
For instance,
- Marketers will have better control over their operations due to the direct connection with the end consumers. This would include customising strategies to various consumer taste/ demographic cohorts.
- Direct feedback from end-consumers enabling the marketers to innovating product and distribution design. Direct feedback could also reduce lead time in customer service.
- With the increasing adoption of digital services by the consumers, D2C brands would be able to penetrate deeper for enrolling more customers without incurring the physical cost of servicing them.
- There would be more cost-optimisation if D2C approach is adopted by the marketers. The complementarity of a classical distribution model is more expensive for obvious reasons. The point about digital connect with the end consumer is also relevant in this context.
In short, the benefits of adoption of a D2C model could upend many traditional practices of marketing and in fact benefit the marketers tangibly.