Before starting a business, it is crucial to identify which business model suits your product or service the best. No business can strive in the long run if it tries to follow multiple models and doesn't have a clear idea of the market.
With the advent of the internet, the standard business model of a manufacturer to distributor to retailer to the consumer has been condensed from manufacturer to consumer.
Now there is no need for the products to be stacked on mall shelves to be sold. It can be sold directly to the consumer via eCommerce platforms, website stores, online markets, or shops. The entire chain of production, packaging, distribution, can now be controlled by the manufacturer. This is the D2C (direct-to-consumer) model of business.
Why should I choose the D2C model for my business?
Taking all the responsibilities that were earlier divided among the middlemen might will add more weight to your shoulders but it is worth it.
By cutting the number of middlemen you will save a huge chunk of your profit. Rather than paying distributors, you can keep that extra percentage in your pocket.
That money can be utilized in other areas such as marketing, product development, experimentation, expansion, etc.
As extra fees are eliminated, you can reduce the selling price of the product to attract more audiences.
You have full control of the distribution, packaging and can personalize products according to your consumer needs. You can analyze the market trends and market-specific products that have a high demand in the region. These are some of the perks of D2C.
How can I convert my business into a D2C brand?
To sell directly to the consumers you have to convince them to trust your product and brand then only will they buy it. Brand building is the key to breaking the D2C market and the key to brand building is MARKETING.
A great marketing strategy can make your brand a household name and a multi-million-dollar venture. In today's tech-savvy youth, the only medium to market yourself is through the internet.
Social media platforms such as Instagram, Facebook, Twitter, and websites stores are the main focus of all brands. The issue with social media is that people while scrolling social media are not in the mood of purchasing. They might come across your profile, like your business but not buy anything.
Whereas if they are searching for products on their browser and your website turns up, there are high chances that the lead will convert into a customer.
Power of website/online store
In today's fast-paced life majority of the consumers like easy shopping. Rather than going to malls, online shopping is preferred. Despite the lockdown and decreasing consumer spending, statistics show the rise of eCommerce shopping. India's eCommerce order value increased by 36% in the last quarter of 2020.
India's eCommerce market is expected to reach US$ 111 billion by 2024 and UD$ 200 billion by 2026.
When all businesses suffered, brands selling their products online had a stream of income and could sustain themselves during these testing times.
It is estimated that 14.1% of retail purchases have been made via eCommerce sites in 2019 and it is projected to rise to 22% by 2023. Ecommerce shopping is on the rise and is the platform for all big and small businesses to reach their customers.
This is the power of a website. Entrepreneurs all over the world create a website for their business before launching it into the market. On average websites contribute to 20-30% of sales in the D2C model.
Qualities that are a must in a website
Have you ever been to an ugly-looking website?
Maybe something like this?
Will you ever purchase something from here?
I don't think so. For a lead to convert into a client your website design, organization, ease of use come to play. 38% of shoppers will leave your website if it does not look attractive.
User experience determines if the user will click the buy now button or not. 80% of the people refrain to purchase from a website that doesn't have a great user experience.
Online shopping doesn't only happen from a laptop or computer. Nowadays a majority of it happens via smartphones. 49% of people exclusively use their phones for shopping as it is more convenient.
For your website to pop on their screens it needs to be mobile-friendly.
77% of impulse buying happens via mobile phones hence your website needs to be there! Mobile phones are the best way to reach customers. If your target group is from 15-30 it is a must as this generation is always stuck on their phones.
How have websites revolutionized D2C?
websites have made it very easy for brands to directly reach the customers. Rather than depending on other people you can directly market and sell your products.
It has reduced the investment needed to run a business. Especially for small home-based businesses websites have been nothing but GOLD. From their houses, entrepreneurs can reach out to people from all over the world. It expands its market globally.
How can you make an ideal website to give a head start to your business?
Making a website is not difficult at all. Gone are the days when you had to engage a graphic designer, software engineer, or other professional to create an appealing, functional, and mobile-friendly website. No code, no learning website builders are here to help you.
Product like BUDO and NINJIN are here to solve all your problems effectively and economically.
BUDO is a simple, user-friendly and powerful software that helps you create eye-catching websites within minutes.
NINJIN is an efficient and powerful software that helps create websites stores within minutes.
The best part is that both of the software's have a free version that you can use! If you are happy with it and want more features, then you can upgrade to the premium version at any time.