What is D2C Marketing?

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D2C is the Direct-to-Consumer business model, where a manufacturer sells their products directly to consumers through their own online stores, cutting out the middlemen in the form of retailers. In the same fashion, D2C marketing is marketing employed by manufacturers to attract consumers. The strategies and techniques of D2C marketing are very similar to B2C marketing, with the caveat that branding and positioning are different because it’s a manufacturer, not a retailer who is doing the marketing. This is what makes D2C marketing so essential. A brief look at the D2C market The D2C market is an evolving one.


Selling goods directly to consumers isn’t exactly aEmail List  novel idea, but it has seen huge growth since the COVID-19 pandemic. The latest figures we have for the D2C market show that total sales in the US amounted to $128 billion in 2021. And the D2C doesn’t market doesn’t show any signs of slowing down. Chart showing D2C eCommerce sales in the US from 2019 to 2024 Source Compared to the US B2C market, which grossed 1.5 trillion, the D2C market makes up 8.5% of the national eCommerce market. That’s almost triple what it used to be in 2019 at 2.6%. This shows a good growth dynamic of the D2C market. Consumer behaviors show why that might be the case.

   


In 2021, a survey by Diffusion showed that 69% of consumers had made at least one purchase directly from the manufacturer. 44% believe D2C can provide better price-to-quality ratio. Pricing is actually at the top of the list of D2C purchasing factors. Consumers want to shop with brands directly because they want lower prices, better customer service, and free shipping. However, two trends might make the D2C market seem a bit less perfect and more challenging. First, as of 2023, older, established brands outperform digital-native brands by a wide margin when it comes to D2C. That’s hardly shocking as brands like Nike definitely have more budget to spare on creating digital assets and running D2C marketing campaigns. But it’s worth knowing that you might be competing with large manufacturers and you have to be smart about your strategy. Another problem for D2C companies is the eCommerce marketplaces.