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The direct to consumer (DTC) strategy is quickly becoming a popular route for manufacturers and CPG (Consumer Packaged Goods) brands to enter the market directly instead of through a middle-man entity. The benefits of going direct to consumer are many, but to name a few, going D2C eliminates the barrier between the producer and the consumer, giving the producer greater control over its brand, reputation, marketing, and tactics. Plus, it potentially helps the producer directly engage, and therefore learn from, their customers. (1) At first glance, you read about these other sectors, and think “oh cool, it’s a DTC disruptor that potentially help small ventures develop. However, in reality these other sectors are so much more. There are layers and layers to this disruptor that has taken what’s worked in an uncertain era and created an innovative platform to potentially help small ventures in revolutionary ways. On the other hand, these other sectors might have a solution to economic problems since the health crisis. Could this possibly help some people that have small ventures? Find out on how it works!
For years, this is the way it worked, brands manufactured products and engaged in relationships with retailers. It wasn’t necessarily the greatest relationship because retailers operated on narrow margins and brands longed for the relationship that retailers were able to build with customers. Fast forward to the past two decades or so and, thanks to advance in technology and the internet, there are more ways than ever for brands to not only communicate with its consumers. (2) However, after entering the CBD/Wellness space two years ago, these other sectors just announced a new, cutting-edge venture entering into the pre-rolled smokable market. The development in potential demand and competitive CBD space was worth roughly $2.8 billion in 2020. By collaborating with these other sectors, brands might just have greater access than ever before to every major retailer in the country. More intriguing information here!
Therefore, brands are choosing this route because of store consolidations offering fewer retailer relationships, the dominance of a few key retailers pushing others out of ventures, and tighter retail controls that limit a brand’s visibility. So, brands that opt to go retail have a few options to consider. Shoppers now could have a chance to connect with the brand whenever they want on their terms. This could be a life changing! Check the disclaimer on profile and landing page.
Source 1: https://www.coredna.com/blogs/direct-to-consumer
Source 2: https://study.com/academy/lesson/direct-to-consumer-sales-model-history-trends-examples.html
