Advantages of the Direct to Customer (D2C) business model over traditional business set up where retailers must go through layers of middlemen and building a direct contact with customers becomes tough.
"Make your customer your friend and you'll have a long living business."
If one had to simplify D2C business models into a single sentence, this would be the perfect way to do it.
In a competitive world where everything is accessible at a single touch on the screen of your mobile phone, having a good product is only just the basic requirement. Marketing the said product to an audience that needs it, understanding why your audience needs it and how you can meet this need better is what matters the most.
In a traditional set up where manufacturers have to deal with retailers and go through layers of middlemen, building a primary relationship with the customer is a hard job and in a fast-paced world where trends change before seasons - this becomes an outdated system that hardly works, especially for apparel & fashion brands.
The world of Instagram thrift stores and WhatsApp shops has spiralled a shift from "let the customer come to you" to "go to your customer" mindset. From small out of home boutiques to internationally acclaimed labels and local apparel brands, every brand that wants to capitalise on the chameleon trends of the fast-growing apparel market has shifted to D2C platforms and for the better.
Direct to Customer Platforms are a blessing because,
1.There are little to no middlemen-there is direct access to customers and their consumption pattern. This has helped brands understand their customers better, fine tune their offerings, educate and engage with customers directly.
2. Since there are no middlemen, margins are better for business and they are able to pass some of those benefits to their customers as well.
3.A better understanding of the customers and their preferences has helped apparel brands to make innovative products that are stylish and meet a greater want that extends beyond fashion.
4.Being a D2C platform, brands are not restricted by seasons and geographical boundaries. Thus accessing customers everywhere has become possible resulting in greater market opportunities and profits.
5.Directly engaging with customers through digital channels like an e-commerce website and other mediums like social media helps build strong customer loyalty.
6.D2C platform enables brands to capitalise on changing trends and needs in a nick of time.
During the recent Covid-19 pandemic many D2C brands shapeshifted and expanded catalogues to undo the scarcity of protective essential gear, with masks becoming a permanent addition for most.
About the author – Prabhkiran Singh is the CEO, and Co-founder of brand Bewakoof.
An entrepreneur at heart, Prabhkiran started working or planning on his entrepreneurial journey from his college days at IIT Bombay. He started his first business venture in his college days with a lassi cafe, known as khadke gLassi. He launched Bewakoof out of his dorm room with an initial investment of ₹30,000 in his 2nd year of college, 2012. Currently, Bewakoof is one of the largest D2C fashion brands in India.
Going D2C helps accelerate processes that would otherwise take ages to set up. This is true for most industries especially in the post-pandemic world. D2C platforms are asset light, reduce go to market time drastically and need less manpower resources to launch sustainable D2C brands. There are more pros than cons and this makes for a fair bargain for apparel brands that are already operating in a very competitive and speedy world.
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