Will Direct to Consumer D2C begin to supplant Retailing ?
D2C is an abbreviation of direct-to-consumer, a business model which is growing rapidly thanks to digitisation. A company produces a given product in its own facility, as well as distributing it within its own channels. Customers are attracted through mobile applications, social networks, websites, and other channels directly to the manufacturer.
The advantage to the consumer is the ability to contact the brand directly rather than going through an intermediary such as a Retailer. The manufacturer has nowhere to hide so has to ensure its customer relations team and distribution channels are impeccable. D2C companies are able to collect and evaluate data about their customers in order to provide personalized service, previously held by the intermediary (wholesaler or retailer).
Direct to Consumer (D2C) may also result in:
- Reduced prices for consumers by elimination of the intermediary (Retailer) mark-up margin.
- Reduced carbon emissions, by elimination of physical distribution of products between manufacturers and other intermediaries (Retailers) in the product journey to consumers and from consumers in the case of Returns.
Brian Kilcourse, Managing Partner, Retail Systems Research LLC (RSR)
Before co-founding RSR in 2007, Brian was President & Chief Executive of Retail Systems Alert Group, a B2B media company focused on the retail ecosystem. Brian was the SVP & CIO at Longs Drug Stores, a $5B enterprise with markets in the U.S. West Coast and Hawaii, from 1993 through 2002. One of the top retail CIO’s in the United States during his tenure, Brian was named one of the Premier 100 IT Leaders by Computerworld magazine. He is an Advisory Board member of IORMA.
Steve Allen, Regional Sales Director UK & MENA, Metapack Group
Steve Allen was originally involved in developing Bar Code Solutions, now seen in most retail stores, before moving to a bespoke software company delivering In Flight Duty Free Solutions to airlines such as Delta and Air Canada. Since then, he has worked across the globe with a variety of international IT companies. Steve is an Advisory Board member of IORMA.
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