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D2C

D2C

Direct-to-consumer - a model of sales where companies sell directly to consumers (B2C) in industries where traditionally sales would be done via other distribution channels like retailers, resellers, etc.

Direct-to-Consumer (D2C), is a business model in which manufacturers and Consumer Packaged Goods (CPG) companies sell directly to their consumers, as opposed to pipelining through wholesalers to retailers and then to consumers.

D2C business is highly beneficial when it comes to consumers. Consumers can purchase their desired goods at lower costs because it is manufacturer direct. Additionally, manufacturers can cut costs by removing the third-party "middle-men" responsible for the wholesale and retail sale of their goods. Although there are many reasons to strive to be a D2C corporation, there are many reasons companies do not make the transition, one of them being competition.

When a manufacturer makes the shift from B2B2C or Business-to-Business-to-Consumer, to D2C they suddenly begin competing with the retailers that once supplied their products to consumers. This means the company needs to start better understanding their customer, which is advantageous, to promote repeat business. Due to the difficulty of the transition to D2C, many manufacturers opt for a hybrid business model that empowers them to continue to sell to distributors while also distributing directly to their consumers as well. This method reduces risks while still providing many of the major benefits such as cost reduction and understanding the consumer market.

Timeline

People

Name
Role
LinkedIn

Further reading

Title
Author
Link
Type
Date

COVID-19 Case Study 2020: New Direct-to-Consumer (D2C) Opportunities During Lockdown - ResearchAndMarkets.com

Web

July 1, 2020

The Rise of D2C

Vivian Wagner

Web

November 18, 2019

Documentaries, videos and podcasts

Title
Date
Link

How to Launch a D2C Brand (ft. the founders of Made.com/Typology, Ho Karan & Le Slip Français)

August 1, 2019

Scaling a D2C Startup through Organic Growth // Helena Price Hambrecht, Haus (Design Driven NYC)

February 26, 2020

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
Connie Loizos
September 1, 2021
TechCrunch
Bright Cellars, a six-year-old, Milwaukee, Wis.-based subscription-based wine seller has, like many upstarts, evolved over time. While it once sent its club members third-party wines that fit their particular profiles, Bright Cellars says it's now amassing enough data about its customers through its "palate" quizzes that it no longer sells wines made by other brands. [...]
Alex Wilhelm
August 25, 2021
TechCrunch
Warby Parker has two main sales channels, largely attractive economics, falling losses and rising adjusted profitability. You could even argue it handled the pandemic well. So what's it worth?
Meha Agarwal
July 21, 2021
YourStory.com
D2C lifestyle brand Zouk has big plans after its pre-Series A fundraise of $1.5 million. It aims to scale to Rs 100 crore by FY23, expand in India, and start operations in the US, Canada, Europe, and the Middle East.
Saumya Tewari
July 5, 2021
mint
Launched in 2015, Sugar Cosmetics clocked over Rs130 crore in revenue in FY21. The company currently offers over 550 products in makeup and skincare verticals
Saumya Tewari, Suneera Tandon
June 30, 2021
mint
Drawn to quality and customization, affluent Indian consumers are falling in love with direct-to-consumer brands.India has a growing young and upwardly mobile population which seeks niche, high-quality and customized products that are underserved by the traditional players
June 25, 2021
Moneycontrol
The company plans to launch the gourmet coffee brand Eight O'Clock next week in India through the D2C channel. Earlier this month, the company had launched customised coffee brand Sonnets through the D2C channel.
Madhurima Nandy
June 3, 2021
mint
Over fifty limited partners participated in the fund.More than half the investments came from family offices, and from over 20 listed companies who participated directly or through promoter entities
Richard Dal Porto
May 21, 2021
TechCrunch
Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.
Omar Faridi
May 3, 2021
Crowdfund Insider
Bhavik Vasa: CEO at Asian revenue-based financing Fintech GetVantage says startups should focus on sustainable growth.
AlleyWatch
March 31, 2021
AlleyWatch
The Pulse of New York Tech
April 5, 2021
WebWire
Samsung Electronics today announced that the company has launched its N-ERP (Next Generation - Enterprise Resource Planning1 ) system in its regional and local offices in Southeast Asia, Southwest Asia and China. The N-ERP is the enhanced system of the current G-ERP (Global ERP) which has managed the company's global operation throughout manufacturing sites and sales offices worldwide. Samsung will expand the system in phases to reach complete global implementation by January next year. "...
Saumya Tewari
March 12, 2021
DealStreetAsia
This is the first institutional fundraising by the company, which plans to use the capital for building its brand and expanding the business.
Ingrid Lunden
January 28, 2021
TechCrunch
If the rise of direct-to-consumer businesses has been one of the big e-commerce trends of the last decade, then the growth of startups raising huge rounds to consolidate D2C players, to bring more economies of scale to the model, has definitely been a related theme of the past year. In the latest move, a startup [...]
Ingrid Lunden
January 28, 2021
TechCrunch
If the rise of direct-to-consumer businesses has been one of the big e-commerce trends of the last decade, then the growth of startups raising huge rounds to consolidate D2C players, to bring more economies of scale to the model, has definitely been a related theme of the past year. In the latest move, a startup [...]
Walter Thompson
January 18, 2021
TechCrunch
Shifting consumer demands within beauty and retail are creating rich opportunities for U.S.-based beauty/consumer tech SaaS companies.
Walter Thompson
January 6, 2021
TechCrunch
Venture capital, from my vantage point, has lost its sheen for a lot of product-based brands. They're not destitute and desperate for financing.
December 11, 2020
WebWire
, , , , • Direct-to-consumer sales worth £96bn for UK manufacturing in 2020, and set to grow to £120bn in 2023 , , • 57% of consumers now choosing to buy direct from manufacturers , , • 85 million packages will be sent direct-to-consumer by manufacturers this year as logistics companies also benefit , , • New Barclays Corporate Banking research gives cause for optimism after a tough 2020: average manufacturer earnings have fallen by 26% this year, and headcount by 19% , , , , , , A boom in manufactu...
Catherine Shu
November 25, 2020
TechCrunch
The COVID-19 pandemic has hit the consumer, leisure and media companies hard, but a new venture firm called The-Wolfpack is still very upbeat on those sectors. Based in Singapore, the firm was founded by former managing directors at GroupM, one of the world's largest advertising and media companies, and plans to work very closely with [...]
Jordan Crook
September 1, 2020
TechCrunch
The world of retail has been absolutely rocked by the coronavirus pandemic. Stores closed across the country, and at the same time, online sales went through the roof. Direct-to-consumer brands, many of whom are masters of both online and brick-and-mortar channels, experienced unprecedented change in a matter of weeks and months. To unpack all of [...]
Jordan Crook
August 20, 2020
TechCrunch
Eric Hippeau is the founding partner at Lerer Hippeau Ventures, whose portfolio companies include the likes of Axios, BuzzFeed, Casper, Warby Parker, Allbirds, DocSend, Fundera, Everlane, Giphy, Genius and the recently acquired fitness company Mirror. It would not be an overstatement to say that Hippeau is well-positioned to discuss startups across a wide spectrum of [...]
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