1、Brands are taking control by going direct to consumerHow to implement a digital commerce strategy to improve brand awareness without disrupting the distribution channel.Brands are taking control by going direct to consumerHow to implement a digital commerce strategy to improve brand awareness withou

2、t disrupting the distribution channel.3 Brands are taking control by going direct to consumerMarket TrendsThe continued growth of ecommerce and the emergence of new digital channels are driving forces in the changing retail landscape.Faced with internal and external pressures to keep pace,an increas

3、ing number of brand manufacturers are establishing direct-to-consumer online sales channels.Todays consumer has more options than ever for researching and purchasing products.Ever-increasing online sales and the explosion of marketplaces,mobile devices and social media channels drive innovation and

4、opportunity for brand engagement in a constantly evolving retail landscape.As a result,brand manufacturers are experiencing internal and external pressures to open up direct-to-consumer(DTC)sales channels.3 Brands are taking control by going direct to consumer4 Brands are taking control by going dir

5、ect to consumerExternal and Internal Pressures for Going DirectWith the prevalence of digital channels,consumers expect to be able to purchase directly from the brands they love.Manufacturers realize that they need to offer a better experience for consumers already shopping on branded sites.At the s

6、ame time,they must gain tighter control over their brand,pricing,and distribution.Internal PressuresBrand controlPricingExternal PressuresCompetitionConsumersProduct ContentRich product content that is consistently syndicated across sales channels is an issue for many manufacturers.Content must be o

7、rganized efficiently in order to help manufacturers fuel their sales through not only their channel partners but also through a direct to consumer strategy.This also includes creation and distribution of unstructured content that conveys brand values and brand experience.This means syndicating conte

8、nt and providing the right information(data feed)every time it is needed to make sure it is consistent.This is what customers value most about the brands they love:true and authentic content.The Power Of Using Data5 Brands are taking control by going direct to consumerProduct Ratings and Reviews Col

9、lecting and managing ratings and reviews is a great tool for a DTC strategy;it is also useful when looking for feedback about the role the brand plays in the lives of consumers.Take the star rating as an example.According to a study by PowerReviews and Northwestern Universitys Spiegel Research Cente

10、r,a star rating of 4.2 to 4.5 stars is the ideal average for purchase probability.Using ratings and reviews data,manufacturers can fine-tune product assortment,inform product development,and optimize pricing.Customer Data A complete vision of the customer how,what,where,and when they buy,their onlin

11、e behavior,and product preference-are a rich source of data previously controlled exclusively by retailers.With a direct-to-consumer online sales channel,brands gain a deeper understanding of customers and are better able to meet their expectations for product,price,and purchase experiences.Competit

12、ion comes from all directions.As a result,brand manufacturers are forced to explore channels that are free from competitive distractions.Opening up direct-to-consumer online sales channels lets brand manufacturers reach and connect with increasingly flighty consumers.That connection is more importan

13、t than ever in an online world dominated by never-ending buying options.According to most consumer studies,shoppers typically conduct research online before making a decision to buy.A natural source of information during this discovery phase is the brand manufacturers website,as consumers trust the

14、brands they know.Customers prefer to buy directly from brands,and may be willing to pay more because they know they will receive an authentic product and are often eligible for additional perks.Brands can encourage direct purchases by offering benefits consumers dont get when they buy from a retaile

15、r or third-party marketplace.By offering better return terms,an extended warranty or customer service perks,brands can convert more shoppers and grow loyalty in the process.The pressures faced by most brands from competitors,other retailers,and marketplaces can often result in a lack of brand contro

16、l and product pricing.These pressures compel brands to exert a stronger influence on marketing and pricing so that brand equity remains strong.Adding a direct-to-consumer online channel provides a new avenue for direct customer engagement and a way for brand manufacturers to control the brand experi

17、ence and pricing strategies.These practices can be shared with retail partners,creating a win-win cycle.CompetitionWhy Pay More for Buying Direct?Control of Brand and Product Pricing6 Brands are taking control by going direct to consumerWhy Go Direct?Investing in a digital channel has many upsides.F

18、or one,sales increases can be driven by a number of factors,like new customer acquisition,improved ability to increase average order value,and better chances for repeat business from loyal customers.Digital channels are also an effective way to generate traffic in other channels like stores,through

19、mobile apps,at events,etc.Additionally,brand manufacturers will see better brand awareness as they foster relationships with consumers through direct sales.Convergence of B2B and DTCAll business buyers are consumers.A B2B customer can be a DTC customer and even EDI users are coming to B2B sites befo

20、re ordering.B2B and DTC sites are converging,narrowing the gap between buying for personal and business needs.This allows the brand manufacturer to get closer to the customer,to engage with them,learn from them,and find better ways to sell to them.With the customer now engaged with the brand,brand m

21、anufacturers can use direct-to-customer marketing to establish loyalty.The overall strength of the brand will see huge improvement.By borrowing techniques from DTC,digital commerce brands can create relevant experiences for B2B business buyers.Currently,many manufacturers approach B2B digital commer

22、ce initiatives seeking merely to create web-based interfaces of ERP and back-end processes,but there is a better way.Taking a customer-first approach,like you do with consumers through personalized experiences,timely offers,and relevant content also accelerates growth in B2B digital commerce.Why do

23、brands go direct?Build direct relationships with customers Grow loyalty and repeat purchasesBetter understand consumer behavior,preferences,and trendsTurn product research into a purchaseGain market shareStrengthen the brand7 Brands are taking control by going direct to consumerMeeting Customer Dema

24、ndsShoppers have high demands.They want a seamless shopping experience at all touch points.The digital commerce platform facilitates the front-end experience but brands must also focus on the operational aspects of the business to ensure a seamless customer experience.All departments must be aligned

25、 for flawless customer service as there is a higher risk of losing customers once you are directly engaged.As such,learning to respond to customer behavior is critical.Provide them with excellent service and unique experiences,and they will become your best advocates.Disappoint them and you risk los

26、ing them for good.According to Gartner Research,the key challenges when developing a digital commerce strategy are:The lack of business alignment and neglect of customer experience that tends to occur when IT leaders are tasked with deploying the digital commerce platform.Being caught off guard and

27、failing to respond to fast-changing market conditions and variable customer preferences.8 Brands are taking control by going direct to consumerDealing with Channel ConflictHistorically,the biggest challenge in establishing a direct-to-consumer sales channel has been the fear of channel conflict not

28、wanting to harm existing retailer relationships by competing with those retailers.While some retailers refrain from doing business with brands that sell direct-to-consumer,manufacturers are increasingly overcoming this conflict by working with retailers to devise strategies that are beneficial for a

29、ll parties involved.Selling direct does not mean abandoning existing distribution channels.A successful direct-to-customer business should be built on a strategy that supports current distribution partners and increases revenue across all channels,rather than prioritizing one over another.Sony Brazi

30、l sells direct to consumers via their online store,but from the marketing site to the product page they suggest a list of many other online retailers without giving preference to their store.Whirlpool DTC in Brazil is the 11th largest ecommerce retailer.SUCCESS CASES9 Brands are taking control by go

31、ing direct to consumerFrom Manufacturer to RetailerRunning an ecommerce channel is a completely different business model than a wholesale retail business,as it requires a different set of internal skills,processes,and infrastructure.Brand manufacturers who sell online do not just need to become onli

32、ne merchants;they need to think and act like retailers.If brand manufacturers do not plan and prepare for these operational differences,the customer experience will suffer.Everything from order placement to fulfillment to shipping,returns,marketing and customer service needs to be tailored to the ec

33、ommerce channel in question to deliver a seamless customer experience.To ensure that the customer experience is on par with the brand experience,front-end experience and backend operations must receive the same amount of care and maintenance.If the backend infrastructure and logistics are not equipp

34、ed to handle the direct channel,customer experience will suffer,which will in turn have a significant impact on the brand.10 Brands are taking control by going direct to consumerBehind The ScenesWhile a user-friendly and effective customer-facing ecommerce site is essential,it is also critical to pl

35、an for what happens behind the scenes once an order has been placed.The processes involved in delivering a smooth and seamless experience after the point of purchase are paramount.Failure on the part of operations,backend infrastructure,and logistics to deal with the direct channel will negatively i

36、mpact consumer experience.Because these processes differ so significantly from what brand manufacturers are accustomed to,most brands struggle to overcome these challenges.Diligent planning should always include an investment in skilled ecommerce labor resources,infrastructure adjustment,new technol

37、ogy systems implementation,and new operational resources covering everything-from order management to warehousing,shipping and customer service-are critical to ensuring success.To develop a successful digital commerce strategy,establish a cross-functional team with a variety of skills,set the right

38、objectives,design a better customer experience,and also find the right option to get the products directly to consumers.It is important to note that filling orders for single items is not the same as delivering pallets of products to retail partners.You can adapt what you already have or choose to o

39、utsource with the right partner.ConclusionThe transition to ecommerce can be overwhelming.In todays economy,however,the benefits of direct channel sales outweigh the long-term costs.By setting objectives,bringing in the right team,selecting the right technology and building a flexible foundation tha

40、t focuses on a complete customer experience,brand manufacturers can launch,manage and run an effective and successful direct-to-consumer digital commerce business.The bottom line is that brand manufacturers who are not selling direct-to-consumer are missing out on a share of this growing online chan

41、nel.10 Brands are taking control by going direct to consumer11 Brands are taking control by going direct to consumerAdd-On Selecting the Right Ecommerce PlatformAfter deciding to go direct,it is important to select the right digital commerce platform.From a technology perspective,brand manufacturers

42、 should look to an ecommerce platform that allows non-technical marketers,content professionals,and merchandisers to easily manage content and customer experiences.The platform should include such features as Personalization and Segmentation,Publishing Tools,Guided Navigation and Search,Account Mana

43、gement and SEO.Since brand manufacturers can realize significant growth due to an already established brand,they should be concerned about the ability to scale the platform to handle increased traffic and sales.International expansion and maintaining a balance with the expertise of the organization

44、are two other major considerations.This is why a Crawl,Walk,Run strategy is always recommended.Brand manufacturers should choose a platform that allows them to scale upwards to support their growth and lets them learn about the digital channel without disrupting their existing business.The speed of

45、the Crawl,Walk,Run strategy should be considered when evaluating digital commerce platforms in the mid-market or enterprise arena.11 Brands are taking control by going direct to consumerWhen Sony Latin America realized that its existing platform had become difficult to maintain and customer needs we

46、re not being met by outdated elements,the company knew that it was time to find a new digital commerce technology partner.Sony wanted to provide customers across Latin American with a simple,secure and efficient way to acquire Sony products on its website from any device;they also wanted the ability

47、 to easily expand into other markets.Sony looked for a robust yet flexible commerce platform that could keep up with the changing demands of customers and allow them to expand to new markets while delivering a high ROI.CASE STUDYWith VTEX,Sony found a highly efficient cloud-based solution that was e

48、asy to integrate,scalable,and cost-effective.Six months after launching the VTEX platform,Sony Latin America has seen regional expansion in 7 countries and double digit growth in conversion rates.VTEX is a multinational tech company that provides a global,fully integrated,end-to-end commerce solutio

49、n with native marketplace and OMS capabilities.We help enterprises in retail,manufacturing,wholesale,grocery,consumer packaged goods and other verticals to sell more,operate more efficiently,scale seamlessly and deliver remarkable customer experience.Our modern APIs architecture and our powerful bus

50、iness and developer tools allow VTEX to future-proof our customers businesses and free them from software updates.Major brands including Whirlpool,Sony,Carrefour,Adidas,Stanley Black&Decker,AB InBev,Nestl and Coca-Cola Andina,plus 2,500 active online stores across 32 countries,trust VTEX to accelerate and transform their commerce.Visit to learn more.AccelerateCommerceTransformation