Direct-to-Consumer (D2C): Why brands are cutting out the middleman

The Direct-to-Consumer (D2C) model is winning over more and more brands, as it responds to a profound change in purchasing behavior. In 2024, the global D2C market was already worth $583.5 billion, and is expected to reach $2,750 billion by 2033, with annual growth of 17.3%. 

This dynamic can be explained by brands' desire for greater control over distribution, margins and, above all, customer relations. On the consumer side, the trend is just as strong: 80% plan to buy directly from brands, attracted by more personalized experiences, exclusive offers and greater proximity to the brand universe.

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Why do brands choose Direct-to-Consumer (D2C)?

The Direct-to-Consumer (D2C) model involves a brand selling its products directly to end consumers, bypassing traditional distributors, marketplaces or retailers. This approach is rapidly gaining ground, as it offers brands a major strategic advantage: regaining total control over their commercial activity.

Regain control over your distribution

Many brands feel constrained by their dependence on traditional distribution channels. These intermediaries often impose constraints on prices, delivery times and product presentation. 

By choosing D2C, brands regain total control over their pricing, logistics and marketing activities. This means they can better manage their inventories, launch targeted campaigns and react quickly to market trends, without going through a third party.

Improving margins

By cutting out the middleman, brands make substantial savings. Every step removed from the distribution chain reduces costs, maximizing profitability. 

D2C also promotes better inventory and flow management, avoiding overstocking or out-of-stock situations that impact sales. This optimization of the value chain helps brands to generate more comfortable margins, while offering consumers competitive prices.

Create a direct link with the consumer

D2C offers privileged access to customer data, a real strategic lever. 

Thanks to this information, brands can personalize shopping experiences, adapt their offers and anticipate needs. This direct link strengthens loyalty, creates a community around the brand, and establishes a lasting relationship of trust, essential for long-term growth.

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What are the challenges facing the D2C model?

Adopting a Direct-to-Consumer (D2C) model represents a major opportunity, but it also means overcoming several major challenges. 

First of all, managing the entire sales chain requires a real change of posture on the part of brands. They must now handle logistics, customer service and returns management, functions traditionally handled by retailers. This requires substantial investment in infrastructure, technology and human resources to guarantee a smooth and satisfactory customer experience.

On the other hand, successful D2C requires effective and often more expensive marketing. Brands need to deploy targeted, engaging campaigns to attract and retain customers, which requires a dedicated budget and skills.

Secondly, delivering a consistent omnichannel experience is another major challenge. Consumers expect seamless interaction, whether on the brand's e-commerce site, via marketplaces or on social networks. This requires rigorous, centralized management of product and customer data. Without clear organization and the right tools, information is likely to be inconsistent, undermining the quality of the customer experience and potentially leading to a loss of trust.

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The key role of PIM in a Direct-to-Consumer strategy

PIM (Product Information Management) centralizes, organizes and enriches all information relating to a company's products. Its main mission is to guarantee the quality, consistency and availability of product data across all sales channels. Centralizing this information is essential to avoid errors and inconsistencies, and to speed up time-to-market.

In a D2C strategy, the PIM acts as a real gas pedal. It enables the rapid publication of coherent, complete product sheets on all digital channels: e-commerce site, marketplaces, social networks, etc. This homogeneous distribution is crucial to delivering a smooth, professional customer experience. This consistent distribution is crucial to delivering a smooth, professional customer experience. What's more, the PIM facilitates the management of multilingual product sheets, essential for D2C brands wishing to expand internationally.

Data quality is also a key factor: accurate information, attractive visuals and detailed descriptions boost consumer confidence and reduce the number of returns or disputes. 

Finally, PIM simplifies workflows by effectively connecting marketing, sales and supply chain teams. It makes it easy to adapt content to the expectations of direct consumers, notably through enriched visuals, product storytelling and personalized information. In this way, the PIM is an indispensable foundation for a successful omnichannel D2C strategy.

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Making the most of D2C

The Direct-to-Consumer (D2C) model appeals for its potential to redefine the relationship between brands and consumers. By cutting out the middleman, it offers greater control over distribution, margins and the customer experience. However, success in D2C requires overcoming significant organizational and marketing challenges. PIM plays a key role in centralizing and optimizing product data, ensuring rapid and consistent distribution across all channels. This technological foundation is essential for building an effective, personalized and omnichannel D2C strategy, capable of building lasting consumer loyalty.