Packaging Your Future
Direct to Consumer (DTC) Marketing

While the retail marketing model is still alive and well, there’s no denying that direct-to-consumer (DTC) marketing is becoming an increasingly attractive option. 

Direct to consumer is a sales strategy where manufacturers and CPG (consumer packaged goods) brands sell their products directly to their customers instead of selling them through retailers and wholesalers.

DTC brands have the opportunity to engage, well, directly with their audience. They also have more control over prices since they don’t have to sell their products to retailers at a deep discount.



What is direct-to-consumer (DTC) marketing?

Direct-to-consumer (DTC) marketing is the promotion of products and services directly to customers instead of going through a separate store or seller. It targets specific customer groups with personalized messages through various channels. 

What’s the difference between DTC and B2C marketing?
While business-to-consumer (B2C) companies also have to market to consumers, they typically sell through online and/or physical retail vendors. With that in mind, they don’t have to attract customers to a storefront or website to generate sales. The retailer does a lot of the marketing for them.
However, digital marketing practices rarely stagnate for long, and the pandemic has pushed many traditional B2C brands to expand into a DTC approach. More and more companies are starting to rely on DTC marketing to stay afloat in a rapidly evolving market.

DTC marketing strategies
A one-size-fits-all direct to consumer strategy isn’t always effective. Successful DTC brands leverage a strategic mix of tactics to amplify reach and conversions, including:
  1. 1). Building a community of engaged followers
  2. 2). Personalized emails
  3. 3). Social media marketing
  4. 4). Influencer marketing
  5. 5). Custom products
  6. 6). Brand personality
  7. 7). Social activism
  8. 8). Classes and education

What Is a DTC Brand?

Not all DTC brands are the same, however. Digitally native DTC brands, such as Away (luggage), Glossier (skincare and beauty), Warby Parker (eyewear), and Bombas (socks), started life selling their products directly to consumers only, or primarily online through their own websites.
These brands are fully responsible for the sales and distribution of their products. Some digitally native DTC brands have branched out and opened physical stores, but their primary source of sales is through their online stores.

As the popularity of DTC grew, many traditional brands have either made the switch to DTC or developed a hybrid model where they provide products through distributors and retailers and direct to consumer. For example, Nike stopped selling its products through Amazon and now sells direct to consumer through its own website.
Other examples include Pepsico, which launched an online store snacks.com to sell its snack foods directly to the consumer, and Covergirl, which built its DTC website to compete with other direct-to-consumer beauty brands.


Key Considerations for DTC Brands

Along with the benefits of a direct to consumer sales strategy, brands need to think about the following carefully:

  • Unless the brand is already well-known, there is no existing audience. When selling via a DTC model, the brand is fully responsible for developing the marketing and sales strategies that bring customers to the website and convert them.
  • The brand is responsible for every aspect of the sales process, from creating inventory to packaging and shipping products to providing customer support. There are many moving parts to a DTC strategy, and it’s critical all the right processes be in place for a brand’s success.
  • Building brand loyalty becomes a critical focus if the brand wants its customers to keep returning and buying more. With a DTC model, the brand owns the entire customer experience and ensuring customer loyalty is key to building a long-term brand.

Ten examples of DTC brands that are rocking the market
Showing you the description of their Hero product and the reason for its popularity, I hope they serve as inspiration for your next success.

1. Glossier - Boy Brow: A popular grooming pomade for thickening and shaping brows, known for its minimalist branding, ease of use, and natural results.

2. Drunk Elephant - C-Firma Fresh Day Serum: A vitamin C serum that brightens and firms skin, popular for its clean, clinical formulations and transparency.

3. The Ordinary - Hyaluronic Acid 2% + B5: An affordable, effective serum that hydrates the skin, favored for its simplicity and transparency.

4. Function of Beauty - Custom Haircare Products: Personalized shampoo and conditioner tailored to individual hair types and goals, known for its customization.

5. Ilia Beauty - Super Serum Skin Tint SPF 40: A lightweight, multitasking serum that offers hydration, sheer coverage, and sun protection, aligned with clean beauty standards.

6. Fenty Beauty - Pro Filt’r Soft Matte Longwear Foundation: A long-lasting foundation available in 50 shades, recognized for its inclusivity and Rihanna’s influence.

7. Ouai - Leave-In Conditioner: A multi-functional leave-in conditioner that detangles, smooths, and protects hair, popular for its effectiveness and celebrity backing.

8. Curology - Custom Skincare Formulas: Personalized skincare treatments tailored to individual skin concerns, offering professional-grade solutions.

9. Billie - Razor Starter Kit: A women’s razor with a subscription service for replacement blades, noted for its inclusive design and affordability.

10. Summer Fridays - Jet Lag Mask: A versatile hydrating and de-puffing mask that nourishes the skin, favored for its influencer endorsements and appealing packaging.




Conclusion

The DTC approach isn’t new, but it has become a more viable option over the last 10 or 20 years. These are just a few examples of how leading DTC brands are disrupting the traditional retail model.
As a (likely) smaller brand, you should take encouragement that your brand is in the part of its journey where you have more freedom. You have fewer eyes on you, so you are able to experiment much more widely than if you’re an already established brand.
Beyond that, when you try out these different DTC marketing initiatives, don’t expect to be perfect right off the bat. DTC brands can capitalize on imperfections and criticisms to appear more human and relatable than traditional retail giants. 
This is also a great way to engage directly with your audience, respond to their comments and concerns, and actually show them how you incorporate their feedback into your products.
Post time: 2024-08-27 14:02:54
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