The direct-to-consumer (D2C) market has grown rapidly in the last couple of years, despite digital marketplaces like noon.com and Amazon helping brands reach its consumers online.
D2C sales were forecasted to account for $17.75 billion of total e-commerce sales in 2020, up 24.3% from the previous year. This has also brought about the rise of D2C enablers like CNNB, which has seen a 500% growth in the past 12 months, facilitated by the impact of Covid-19, and also by acquiring multiple brands like L’Oreal and Kerastase that have pioneered in adopting the D2C approach in order to establish direct channels of communication with its customers.
“We realised immediately that there were opportunities in the market for brands to develop ‘Direct-to-Consumer’ businesses. Direct-to-consumer is actually developing – what we call – a brand.com, like a nike.com or adidas.com,” said Nicolas Bruylants, Co-founder and CEO at CNNBSolutions.com.
“Using marketplaces like noon or Amazon to retail products is a great tool as brands can reach a very large population. However, there are a lot of shortcomings too. The first thing is owning your customer relationship. Amazon and noon own your clients, and you (the brand) don’t own your client. It is very difficult to communicate brand values and understand customer behaviour when brands can’t own the client relationship,” he said.
According to a study by InstaPage, 74% of customers feel frustrated when website content is not personalised. Surveys by Accenture suggest that 91% of consumers are more likely to shop with brands that provide offers and relevant recommendations to customers. As customers demand more personalisation, retailers have started noticing that marketplaces, while optimal to reach large audiences, fall short in addressing personalisation and customisation.
On the other hand, with D2C, brands and retailers can access and control consumer data, which helps in the process of personalisation and understanding consumer needs. This allows brands to rid themselves of a ‘middleman’ or third-party distributor, which saves cost and helps increase margins.
“Developing a brand.com enables you to own customer relationship, data, increases your margin because it cuts out the middleman, and enables you to expand into markets where you’re not necessarily present”, he concluded.
Retail is one of the most successful and thriving sectors in theJanuary 26, 2022 | By Shruthi Nair
Throughout the month of January, Dubai Shopping Festival will help parents keepJanuary 19, 2022 | By RetailME Bureau
It is the final week of the 27th edition of the Dubai
Foodlink Global Restaurants & Catering Services, the F&B services enterprise in India
‘Tis the time to be jolly! The festive season is back. Celebrate
“It sounds like this, Luh Pan Koh-ti-dyan and means ‘the daily bread’,
The long weekend might be over but the Etisalat Beach Canteen 2021
UAE gears up to celebrate this year’s National Day celebrations in the
UAE-based Etisalat Group has signed an agreement with elGrocer, a leading online
Amazon.ae announced that the 11.11 sale is back once again this year
Abu Dhabi Cooperative Society’s COOP City store is now open in Lake
Union Coop, a consumer cooperative in the UAE, revealed that 78% of
Union Coop has opened its 23rd branch within the UAE in Jumeirah
Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and
SML, an end-to-end RFID specialist for brands around the globe, has announced
Retail sales during 2021’s November-December holiday season grew 14.1 percent over 2020
By: Remo Giovanni Abbondandolo, SVP of MENA, Checkout.com Covid-19 changed a lot
There is a large trust gap between shoppers and retailers, according to
Market research and data analytics firm, YouGov has revealed the top-ranked retail
After returning from World War 2, a man decided to go into
By Justina Eitzinger – RetailME Bureau More than a third (37%) of
A global survey conducted by Foresight Factory, released in partnership with Snap,
China’s retail economy saw a slump in July as a result of
New data from Majid Al Futtaim shows that the UAE retail market’s recovery is continuing.
Masks and make-up don’t really go hand-in-hand right? Despite that, the Middle
“The fashion industry will need to ‘slow down’ so that people can