Direct-to-consumer: The next frontier for consumer industries
Today’s consumer industries is marked by rapid change and constant disruption in global consumer, retail, and supply markets. The rise of the digital consumer, direct-to-consumer (D2C) subscription services, and new digital touchpoints and channels in the purchase journey are bringing new moments of opportunity to augment established business models and marketing approaches. They offer the potential for huge rewards through sales growth, insight, and customer lifetime value to those that succeed in directly engaging and retaining consumers’ trust and loyalty.
The playbook is being rewritten as new players emerge and traditional players are forced to rethink their business models. Many companies are under pressure to manage this complex environment and address challenges such as bringing growth to categories, managing the online shopping experience, and understanding what to do with e-commerce. Consumer brands are increasingly adopting a new model for “where to play” and “how to win” that gets their brands on the right side of the trends and helps their brands scale faster. Together these changes will fuel the next generation of industry growth.
At the same time, forward-thinking chief marketing officers (CMOs) have begun to think about the next normal. The challenges in the next normal are shaped by rising consumer expectations, increasing competition, and digital disruption. Overcoming the challenges and drive growth are not just essential for the CMO, they are crucial for the business’s growth. Today’s winners are those that can spot opportunities at hyper-granular levels and then capture them quickly.
The fastest-growing consumer brands will be storeless, data-rich, live, participatory, entertaining, localized, and streaming. They operate as data-centric companies growing first party relationships and first party data. They manufacture products for consumers based on demand and evolving needs, whilst maintaining consumer trust, privacy and compliance.