Companies discover D2C: what about your eCommerce?

D2C is already established in the fashion industry. We are talking about the "direct to consumers” and is also gaining ground in the grocery sector. The reason is the quarantine, but also the convenience of the service. And so new business opportunities open up for companies looking for new market openings.

Let's get straight to the point: what is D2C? Direct to consumer is the phenomenon whereby the company not only produces a product, but also develops individual distribution channels, such as shops and e-commerce, or social media. This is a phenomenon that has already existed for some time, especially in the fashion sector, but which is now also rampant in the more traditional shopping sector.

Direct to consumer: does it really have a market?

THEsurge of D2C has arrived, despite himself, with the spread of COVID-19. State-of-the-art research revealed that, over this period, 65% of Amazon users said they weren't able to get everything they had, while 32,75% stated they failed to to order anything he actually needed. Faced with out of stock items, consumers had to ingenuity and turn to lesser known brands - and here is the emergence of D2C! In this moment of out of stock on the most famous platforms, the smaller companies have had the opportunity to focus their attention on the opportunity to retain customers orphaned by their reference distributor. And a new investment opportunity for companies arises from the need of the market.

Among the essential advantages, there is certainly the possibility of establishing a direct relationship with the consumer. And in this way it becomes possible to capitalize on trends as they arrive on the market. Finally, having complete control over your own brand products helps you maintain control over your marketing management.

D2C: which categories are most affected?

According to data from 1010Data, the most affected sectors in the United States are those of food supplements, pet food, detergents and household cleaning. These categories have gained an unprecedented share of the market, increasing the volume of online sales by up to 25%.

What about food items?

During the COVID-19 emergency, many food producers, deprived of the natural sales outlets - i.e. restaurants and bars - they found themselves using the internet, and especially their eCommerce. Take, for example, Sodastream, which has seen triple-digit increases online. Bindi, the dessert specialists, have instead opened a telephone branch with home deliveries in New York, New Jersey and Los Angeles, donating part of the profits to the James Beard Foundation Food and Beverage Relief Fund. Granarolo has also activated a channel on Bologna. Many other websites have had to close their doors due to excess demand: the challenge of 2020 for D2C is to support sudden peaks in customers and, above all, finally be able to snatch customers from the big monsters of online commerce - carving out their personal and loyal market share.