Why selling direct to consumers is a challenge in 2017

Consumer goods brands are increasingly looking at direct-to-consumer opportunities, cutting out the ‘middleman’ – the retailer – and developing a direct relationship with their customers.

This is one of six trends for the coming year featured in global marketing intelligence service Warc’s Toolkit 2017, produced in association with Deloitte Digital.

Research suggests that cutting out or minimising the retailer allows brands that previously had no direct relationship with their customers to develop one.

More brands are exploring direct-to-consumer opportunities with the help of apps, buy buttons and subscription services, Warc says.

Head of Content at Warc, David Tiltman, says: “Low-cost start-ups have disrupted established business models with customer-centric online businesses. Innovative apps, buy buttons, subscription services and engaging branded social platforms have encouraged impulse purchases and trials with seamless transactions and personalised experiences.”

“The challenge for established brands is responding to these new models,” continued Tiltman. “The coming year is likely to be an area of considerable experimentation.”

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