D2C Business Model is Profitable Bet?

D2C Business Model

In the past two year the D2C channel has grown upto 20 percent. Despite of COVID pandemic expected to grow 15-20 percent in the next five year.“99 percent of leaders of consumer goods companies are investing in D2C sales” according to the study by Salesforce Research. The D2C is gaining the attention of manufacturers and consumer packaged goods. 

To sustain their brand's reputation, brands are learning marketing and sales methods directly from customers by removing the barrier between manufacturers and customers. Manufacturers have been forced to handle everything from inventory to sales as part of the D2C model in order to prepare for a digital and omnichannel experience. Manufacturers prefer the direct-to-consumer strategy because it allows them to avoid fees charged by third parties or marketplaces like Amazon.“D2C channel has grown around 20 percent in the past two years,

led by the pandemic-infused demand, and it is expected to grow 15-20 percent in the next five years”. Technopak has sharedMany companies benefited from the digital-first approach during the pandemic, and conglomerates such as ITC, Godrej, HUL, and R&B also entered the D2C sector. Brands like Tata and Marico are using the D2C channel to offer new products, and trials like Tata Nutrikorner and Safola Stores have gotten a lot of attention. The primary concept is to control the entire customer journey, from purchasing habits to checkout, post-shipment experience, and finally feedback and retention.



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