What is Direct to Consumer?
Direct to consumer (DTC) is when a company sells products directly to the consumer without any third- party interference. For example, if you manufacture your own clothes and have your own clothing store then you are considered a direct to consumer company. The reason why is because you are manufacturing your own clothing brand and you are selling it without any third party interference of selling your product at major retailers such as Macy’s, JCPenney, Sears, etc.
DTC selling is something that has been going on for centuries and it is something that has been improving over the years. For example, during the 19th and 20th centuries, salesmen would go door-to-door to sell their products. Now as technology has become forever evolving, it has given the opportunity to many small businesses to sell their products through social media as well as customized personal websites.
Many consumers prefer a direct to consumer approach for the following reasons:
1. Buying directly lessens the fear of being ripped off by a knockoff product:
When purchasing online from a third party retailer, many consumers fear that the product will not meet their expectations. For instance, you purchased a dress from Amazon that was not from a direct to consumer brand, in hopes that the dress you will receive will look exactly like in the picture and when you get the dress it is something totally different. As a direct to consumer company customers can expect to receive the same quality product they are purchasing based on what they saw in person.
2. DTC brands carry every product, color, size, and style; while some retailers often do not:
We live in a fast passing world where many people just want to be able to get everything at once. What is so fascinating about selling directly to a consumer is that many of these companies carry every product, color, size and style that the consumer might look for. While other large retailers such as Forever 21, Windsor, Macy’s, etc. might not always have the specific item the customer might be looking for. Also, direct to consumer companies are constantly restocking their products, unlike other third-party vendors, that once the product is gone it is gone forever.
3. Better communication and interaction between the brand and the consumer:
If there is an issue with the product, the consumer knows that they can go directly to the DTC company and get their money back or exchange the product for something else. Also, shopping DTC gives the consumer accurate and elaborative information about the product.
In the end, as a business owner, you want to make your customers happy so that they can come back and become a lifetime customer. With the help of a DTC marketing strategy, one can build a better and ongoing growth between the company and the customer.