How Your Direct-to-Consumer Strategy Can Boost Your B2B Business

There are a significant number of manufacturers and distributors looking to expand into the Direct to Consumer (D2C) channel, and online is the ideal place to start that transition.

Many manufacturers and distrubutors worry about the negative impact going direct to consumer might have on their existing client base, and on their internal operations. However, many companies who have made the move into D2C are finding that the benefits far outweigh any percieved drawbacks.

Continued commercial pressure from large retail chains and the move by some of the retail giants to go direct to China to get “own brand” equivalent products manufactured is putting a massive squeeze on the margins of many manufacturers and distributors. The security of an alternative route to market, as well as the valuable insight provided by end consumer interaction, is a great safety net for businesses traditionally reliant on their biggest 2 or 3 customers for the majority of their revenue.

By taking an agile “fail fast” strategy to experiment with D2C, business can quickly understand the true nature of the opportunity and how best to approach it. Most companies spend far too much time agonising over the fine details of a new ecommerce channel, making assumptions and projections which have little hope of ever being accurate. There is no better route to market than a simple one which is able to respond quickly and decisively when threats or opportunities arise.

We have worked with companies to set up direct to consumer proofs of concept in as little as 2 weeks, and many of these have gone on to become significant contributors to the company’s revenue (and profit) figures. These projects are cheaper, quicker and significantly less disruptive than the typical constulancy-led approaches which focus on detail and “what if” scenarios in an effort to cover every eventuality before anything is launched.

If you’d like to speak to us about how we can quickly get your company online, and how you can position yourself to capitalise on the opportunities a digital-first approach can give your business, don’t hesitate to contact us.

Posted in Articles, B2B, Online Retail.

I am the owner of XLNC, and have over 20 years' experience in the digital and online retail industries. I have worked with some of the UK's largest and most dynamic retailers and I look forward to using this experience to help you grow your business online.

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