Direct-to-Consumer (D2C)

• Fundamental
• Methodology
• Business Model

A business model where companies sell products directly to consumers, bypassing traditional retail channels.

Problem it addresses

Traditional retail distribution involves multiple intermediaries, such as wholesalers, distributors, and retailers, which can reduce the profit margin of producers and increase the final cost for consumers. It also limits the direct interaction between producers and consumers, making it harder for producers to gather feedback and understand consumer preferences.

How it helps

The D2C model eliminates intermediaries, allowing companies to retain more profit and potentially offer lower prices to consumers. It also enables direct engagement with consumers, providing valuable insights into consumer behavior, preferences, and feedback. This direct relationship can enhance customer satisfaction and loyalty.

Related terms

• Omnichannel
• Retention Rate