
When a brand decides to enter retail as part of their omnichannel strategy, where their products are displayed in offline stores, then the offline stores have full control over where the brand's products are placed on their shelves.
In a 2019 research, a product experienced a 25% decline in sales when placed on the second shelf from the bottom. Meanwhile in other stores, the same products but placed on shelves at consumer eye level, namely the third and fourth levels from the bottom, turned out to sell more.
This limited control over product placement is one of the reasons many brands are starting to switch to a digital strategy with a D2C or Direct To Consumer approach.
So how does a D2C omnichannel strategy give brands control over data and the consumer journey?
Selling directly to consumers without going through a third party means that the brand can monitor the entire consumer journey, starting from the beginning of the consumer's interaction with the brand in the media, for example, to the end, namely when they finally buy the brand's product.
You will understand why consumers buy a product (and how) and other insights that would not be accessible if the product was sold through a traditional retail strategy.
The online Omnichannel DTC strategy will optimize the system based on the data it has collected, and it is this data that gives the brand a competitive advantage. This includes:
1. Know and serve consumer demand for wider product types/categories
2. Optimize visuals for mobile/digital displays, as consumer traffic via mobile accounts for half of all traffic
3. Run A/B tests on landing pages and creative content to see which brand consumers respond best to
Having control over the user-experience with your product means you can identify opportunities and obstacles more quickly. You will know customer obstacles and requests without having to fight with every retail store to get access to customer data.
With this D2C strategy, brands can focus on product innovation and efficient business development, without having to sacrifice a lot of additional costs.
Don't forget to also read other articles, how about it PepsiCo's D2C Strategy to Respond to Changing Consumer Behavior.
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