why is business moving from b2b2c to d2c-sales?
This article explores a few key insights put together by our team, along with case studies on how startups can effectively scale their software development teams to support their growth
In recent years, there has been a notable shift in the way businesses approach their sales strategy. Many companies are moving away from the traditional B2B2C (Business-to-Business-to-Consumer) model and instead opting for a Direct-to-Consumer (D2C) approach. This shift is driven by several factors, including the rise of e-commerce, changing consumer preferences, and the desire for greater control over the customer experience.
The B2B2C model involves a manufacturer or supplier selling their products to a retailer, who then sells the products to the end consumer. While this model has been successful for many years, it comes with several challenges. For one, the manufacturer has little control over how their products are marketed and sold to consumers. Additionally, retailers often have their own interests and priorities that may not align with those of the manufacturer.
On the other hand, the D2C model involves the manufacturer or supplier selling their products directly to the end consumer. This approach allows for greater control over the customer experience, including branding, marketing, and pricing. By cutting out the middleman, manufacturers can also offer their products at a lower price point, which can be appealing to consumers.
One major driver of the shift towards D2C sales is the rise of e-commerce. With the growth of online shopping, consumers are increasingly comfortable buying products directly from manufacturers. In fact, a survey by Redseer Consulting, the D2C market in India was valued at $200 million in 2019 and is expected to grow at a CAGR of 75% to reach $1.2 billion by 2023. This indicates a growing trend towards D2C sales in India. This trend is expected to continue, with e-commerce sales projected to reach $10 trillion globally by 2024
Another factor driving the move towards D2C sales is changing consumer preferences. Consumers today are more interested in buying products that align with their values and preferences. By selling directly to consumers, manufacturers can build a closer relationship with their customers and better understand their needs and preferences. This can help them create products that are more tailored to their target audience.
Finally, the desire for greater control over the customer experience is another key driver of the shift towards D2C sales. By selling directly to consumers, manufacturers can control the messaging, branding, and pricing of their products. They can also collect valuable customer data that can be used to improve their products and marketing efforts.
In conclusion, the shift from B2B2C to D2C sales is driven by several factors, including the rise of e-commerce, changing consumer preferences, and the desire for greater control over the customer experience. While the traditional B2B2C model has been successful for many years, the D2C approach offers a number of benefits that are hard to ignore. As e-commerce continues to grow and consumer preferences continue to evolve, we can expect to see more companies adopt a D2C sales strategy in the years to come.
