What is D2C?

　D2C is an abbreviation of "Direct to Consumer" and means "sellers trade directly with consumers".The rise of D2C's business model started around Europe and the United States around 2010.In areas such as apparel and cosmetics, various D2C brands have their own worldview.

　In Japan, it is attracting attention as the spread of SNS and customer needs are diversifying.Here, let's explain the characteristics of D2C, and look at the difference from BtoC and EC, a similar word, and the background of the increase in brands.

Sales method to trade directly with customers

　D2C is a business model that trades directly with customers.From the planning stage, we will incorporate customers' voices and consistently perform everything from manufacturing to marketing and sales.Until now, it was a common trend to sell products in the interprecs and retail stores, and reach customers.The D2C is characterized by the lack of these intermediate companies and the voice of the customer is likely to be reflected.For this reason, there are many D2C brands that incorporate products that incorporate customer opinions.

　In addition, the sale of D2C has the feature of not only product functions, but also providing a lifestyle that matches the world view of the product.

Difference from BtoC and EC

　BtoC and EC are words that are easy to mistaken for D2C.BtoC is an abbreviation of "Business to Consumer" and is a business model that companies do for consumers.While D2C indicates how to sell the product, BtoC is a word that means "who and who is trading".It is used in contrast to BtoB "Business to Business", that is, "Corporate Transaction".

　EC is an abbreviation of "Electronic Commerce", which refers to the general public trading of products and services on the Internet, which is an Internet mail order.D2C sales are often performed on EC sites, and EC is one of the important sales routes for the D2C brand.

Background as D2C brands have increased

　One of the reasons why the D2C brand has increased is the widespread spread of smartphones.Today, everyone can easily shop on the Internet and disseminate information on SNS.Information that had been obtained in newspapers, magazines, and TV commercials is also changing into web advertisements via the Internet.In addition, SNS, such as Twitter and Instagram, facilitates communication between companies and customers, making it possible to develop products that make use of customer voices.

　In product ads, the evolution of ad technology has made it possible to narrow down more efficient targets, making pinpoint appeals.In addition, SNS can be expected to spread to many people by sharing customers using the D2C brand.

　The diversification of customer needs is also why the D2C brands are expanding.Today, many products have spread to people in developed countries, and more consumers are seeking elements such as concepts and stories than products that emphasize functionality so far.Not only functions and prices, but also products with "commitment" are now required.

Features of D2C

　Since D2C is consistently performed from planning to sales without intermediate companies such as agencies and retail stores, it has a characteristic that is different from the previous sales form.The biggest difference is that there is no clear distinction between sellers and buyers, and the distance to customers is short.Cost and target layers have the unique features of D2C.

　Here, let's introduce the characteristics of D2C.

Connect directly with consumers

　D2C is characterized by incorporating consumer voices from the product planning stage and connecting directly.In the case of a sales form that has been around for a long time, the customer who purchased the product does not reach the company directly.

However, in D2C, companies and customers interact directly, so the sense of distance between each other is close.SNS will also be able to communicate in dialogue, and you will be able to pick up more realistic customers.You can make use of customer voices to improve the product, and also have a synergistic effect, such as leading to customer satisfaction.

Provide products at low prices

　The D2C does not cost a fee because there is no intermediary for middle traders.It can be returned to the price of the product and provided at low cost.

　For example, if you open a store on an EC site such as Amazon or Rakuten, you will be charged a registration fee, store opening fee, and sales commission.The D2C trading at your own market can be provided at a lower price because all of these costs are omitted.

Heart customers as friends

　Until now, customers have been generally positioned as buyers.However, D2C regards customers as friends who raise brands with their company.By communicating directly, it is possible to develop a product that builds a trusting relationship and meets customer needs.

　For example, Warby Parker, an American glasses brand, which has been successful in D2C's business model, offers services that can order and try on products.Customers who use this service will give you advice from the brand by putting a hashtag on the tried on and publishing it to SNS.

　With such a strategy to deepen communication, you can increase brand fans.

Target the millennial generation

　The main target of D2C is the millennial generation.Millennials, born between the 1980s and late 1990, have become popular since the time they were aware and had high affinity on the Internet.Smartphones are part of life and are generations that usually do shopping online.From the launch of the site to the information dissemination, and the purchase, it will tend to be familiar with the D2C business model, which is completely digital.

　Millennials are also characterized by different values for consumption.It consumes not to own "things", but to gain experience.In order to decide on a purchase based on the values of the brand, the D2C brand that provides not only functions but also the world view of the product tends to be preferred.

D2C merit

　D2C has a variety of benefits in relation to different from the conventional sales form.They are not only the benefits of the company, but also the benefits of the customer in that they can get the products they want.Here are the three benefits of D2C.

You can freely decide how to sell

　D2C has the advantage of selling freedom.Sales routes intervened by intermediaries cannot be sold freely due to contracts or rules between contractors.There are restrictions such as not being able to change the content and price of the product immediately, and the free campaign cannot be performed.

　However, the D2C, which is completed at its own market, will be able to develop its own marketing and campaigns, and increase customers.

You can accumulate customer data

　The advantage of D2C is that you can accumulate detailed customer data.If you are a D2C that trades directly with customers, you can get customer attributes and purchase history.

　With accumulated information, you will be able to provide services according to your customers.By directly delivering the product, you can get a more responsive feedback.

You can get a strong fan

　The advantage of D2C is that it is easy to acquire strong fans.Communicating directly with customers makes it easier to convey your vision, values, and commitment to products.

　In terms of customer psychology, it is easier to feel familiar with companies that can interact directly.As a result, it will lead to core fans.

D2C success examples

　The D2C brands born in Europe and the United States are expanding in Japan.A venture company that incorporates the D2C method is launching a business, and a major company is expanding.Here are four D2C brands that are particularly noticed in this situation.

Glossier

　A cosmetic brand founded in New York in 2014.Starting with the beauty blog "INTO THE GLOSS", it is gaining popularity in creating products that incorporate customer voices.It features a skin -friendly product, which attracts the original beauty of the skin.Simple and sophisticated packages are also popular.

　In communication with customers who made full use of SNS that started with blogs, we sell products that are easy to use in real life with customers.You can get a glimpse of the uniqueness of providing a lifestyle for healthy makeup and the style that incorporates customer voices (Reference article: Featured "D2C" model rapid growth cosmetics brand "GLOSSIER"Did you cut into the market?)

NEWN

　NEWN is an apparel brand "Cohina" for small women and online -only cheesecake brand "MR.It is a company that develops six D2C brands, such as "CHEESECAKE".

　 It can be said that the D2C brand is not only the value of the simple thing that provides products, but also providing stories and empathy, and creating products that meet niche but customer needs.

　 COHINA has grown to 100 million yen monthly sales in three years, and MR.CHEESECAKE is characterized by a wide range of businesses, such as developing collaboration products with Seven-Eleven.It is expected to be active, with more than one brand launch in the future.

Base Food (Base Food)

　It is a D2C brand that handles completely nutritious bread and pasta and sells in a subscription (subscription) format.A simple product has a wide range of arrangements, and original arrangements are posted on Instagram and other factors, which has a repeat effect.

　It is characterized by two types of products, while keeping the production costs down, they are regularly renewed while making use of the customers' voices.

　In addition, the company operates a community "Base Food Lab", which can only be participated in regular purchasers, and makes use of feedback directly obtained from customers in product development.

Bulk Homme

　It is a men's cosmetics brand that attracts attention as a Japanese D2C success example.We launched the D2C brand with the creed of "making a product that we believed to be good, without deciding the target."It features web marketing that uses SNS and influencers.

　Product photos posted on Instagram on Instagram, which conveys specific images, are used as creative SNS advertising.We are attracting customers on our website by developing advertising from a user perspective.We provided special prices and special prices for the first time, and succeeded in acquiring customers (reference article: How to grow Bulk Homme D2C brands that we do not know).

D2C is a sales method that meets diversifying needs

　D2C is an unprecedented new method of trading directly with customers.With the spread of the Internet and diversified needs, the market is expected to expand further.

　In addition to the functionality of the product, it is characterized by the empathy of corporate world views and stories of products, and increases fans.In an era when digital evolves further, the D2C brands will be unable to keep an eye on it.