Why are brands banking on Direct to Consumer (D2C)?

The Direct to Consumer (D2C) model is revolutionizing the traditional codes of commerce. It enables brands to sell their products without going through distributors or intermediaries, relying mainly on digital technology. This model has gained ground in recent years thanks to the boom in e-commerce, consumers' quest for authenticity, and brands' desire for greater control over their image and data.

In this article, we'll look at why D2C is winning over more and more companies, what its benefits and challenges are, and why product data management - via a PIM - is a key lever for success.

‍

Why are brands turning to D2C?

The Direct to Consumer model is winning over more and more companies, and not by chance. 

Controlling supply

It gives brands total control over their customer relationships, freeing them from distributors. By collecting first-party data directly via their e-commerce site, brands can personalize the experience, refine their marketing targeting and build loyalty more effectively.

Controlling margins

Another major advantage is the sales margin. According to McKinsey, D2C brands capture 60-70% of the final margin, compared with only 25-35% in a traditional retail model. By selling without intermediaries, they improve profitability and reinvest in innovation and customer acquisition.

Mastering the brand experience

D2C also gives us total control over the brand experience: the site's UX interface, storytelling, packaging, tone of voice... everything is mastered from start to finish to create a coherent, differentiating experience. This is essential at a time when 86% of consumers consider authenticity to be a decisive purchasing factor.

Accelerate time-to-market

Another key advantage is speed of launch. Brands can test a new product or range in a matter of weeks, without having to rely on a distribution network. This agility is crucial in a fast-moving market: in 2024, D2C was already worth $162.91 billion, and could reach $595.19 billion by 2033.

‍

What are the challenges facing D2C?

While the Direct to Consumer (D2C) model offers many advantages, it also entails a series of operational, logistical and marketing challenges that brands must anticipate if they are to succeed.

Logistics, from order to delivery

In the absence of an intermediary, the brand itself becomes responsible for the entire supply chain: inventory management, delivery times, packaging quality, returns management, etc. The slightest hitch can impact customer satisfaction and damage the brand's image. D2C therefore demands agile, well-oiled logistics.

Costly customer acquisition

Unlike retail, where traffic is brought in by distributors, a D2C brand must generate its own audience. SEO, SEA, social networking campaigns, influencer marketing: the levers are numerous but often costly. The pressure is on to optimize the ROI of marketing investments.

High standards of product quality

The product is at the heart of the experience. Not only must it be good, it must also be perfectly showcased: clear descriptions, quality visuals, immersive storytelling, etc. Product information is becoming a differentiating element, especially at a time when sales are going through digital product sheets.

Complex omnichannel management

Even in D2C, sales channels are diversifying: e-commerce sites, marketplaces, social commerce, live shopping, etc. Consistency of content and synchronization of data are essential to guarantee a fluid and homogeneous experience across all points of contact.

‍

The strategic role of PIM in a D2C strategy

In a Direct to Consumer (D2C) model, the product is the brand's showcase. With no intermediary to present it, everything hinges on impeccable product information: striking visuals, precise descriptions, clear benefits, engaging storytelling. This is where Product Information Management software (PIM) becomes a strategic ally.

A PIM makes it possible to centralize all product data in a single, reliable and constantly updated repository. This avoids errors, duplication and obsolete information - all of which can hinder online conversion.

Thanks to PIM, D2C brands can also :

• Automatically distribute product sheets to all their channels: website, social networks, marketplaces, e-mailing campaigns, etc. ... ;
• Easily manage multilingual versions or product variations (sizes, colors, packaging, etc.);
• Accelerate time-to-market by reducing time-to-market for new products;
• Guarantee a consistent brand experience, whatever the channel.

In short, in a D2C strategy, where every interaction depends on the quality of the content produced, a PIM is essential for automating, enriching and managing a high-performance omnichannel strategy.

‍

The contribution of PIM to D2C

The Direct to Consumer (D2C) model is emerging as a strategic lever for brands seeking autonomy, profitability and customer proximity. It offers unprecedented control over the entire value chain, but also involves complex challenges. 

In this context, the quality of product information becomes a major differentiating factor. Adopting a PIM enables D2C brands to structure, enrich and distribute their product content with rigor and agility. It's an essential technological building block for success in a digitalized, omnichannel and increasingly demanding retail environment.