DTC stands for direct to consumer. However, in the midst of the Corona virus pandemic it would make sense for understand for due to Corona virus. And due to Corona virus, many retailers these companies have been forced to move to the direct to consumer business model.
While DTC companies have increased over the years and the business model is used much more often in today’s world, there are still plenty of small businesses and mom and pop shops that solely rely on in-person brick and mortar stores to make money and sell items.
While in person shopping has seen a decline, many people still prefer to go to physical stores to do their shopping. Nothing can truly compare to seeing, feeling, smelling, and looking at and product in person before you decide to purchase it. The digital world has yet to create such an experience for customers, which is why there has still been a need for brick and mortar stores.
However, when a global pandemic hits and retail stores are forced to shutter their doors to shoppers, a true problem for these businesses is created. A once successful retail shop that has made plenty of sales over the years and has done well may now be going out of business were forced to totally change the way they provide business for their customers.
It is important to keep in mind that retail shops are not the only ones affected by COVID-19. Both large and small companies who traditionally have most of their sales done online or only have online shops are feeling the effects as well. These online retailers must also consider shifting their business models to DTC process.
Why switch to direct to consumer sales?
There is an ample amount of reasons for businesses to switch to direct to consumer sales. In the current economic environment during the Corona virus pandemic it is essential for all businesses to start using online sales.
While some retailers have online shopping capability already, many are either not established enough or they need to start their online presence from the very bottom. Lack of online sales means lack of revenue for your business.
Direct to consumer sales allow you to have direct access to any data you want about your customers. You will also find you have a higher retention rate; you can provide your customers with a consistent experience that you are in complete and total control of.
Furthermore, many times it is much less expensive to sell direct to customer rather than going through a retailer. Access to more control and information also gives you the ability to do more testing so you can create better promotions and improve your pricing strategies based on your competition.
COVID-19 has changed a lot about the way our world works. It has changed the way we go about our daily life and is changed the way we interact with other human beings; it has changed the way we shop and buy products, and it has also changed the way businesses have to operate in just about every way imaginable.
During a time of crisis and when things suddenly have to change on a dime, businesses in particular have to get creative and figure out ways to make sales and keep up their revenue so their businesses can stay afloat.
With the huge influx of people transitioning to shopping online and not going into retail stores, and consumers overall spending less money than they were pre-pandemic, both small and large companies should consider direct to customer sales in order to make up all or a portion of what they may be losing during this time.
When the world changes people and businesses must change with it, DTC sales could be your answer to even greater growth and success.