
Direct to Consumer (D2C)
How D2C strategies can help build relationships with consumers, improve margins, and supplement your retail partnerships.
How D2C strategies can help build relationships with consumers, improve margins, and supplement your retail partnerships.
Imagine purchasing your favourite product or service directly from the brand - no supermarkets, no online marketplace. It's a win-win - brands save on third party costs and consumers enjoy a more customised direct experience. With Direct to Consumer(D2C) sales making up a significant 10-15% of total Indian e-commerce and continuing to grow, it is already redefining the retail sector.
Direct to Consumer(D2C) is a model that enables brands to engage directly with its customers, manage sales and offer more personalised shopping experiences. Instead of relying solely on retailers to get their products into the hands of customers, manufacturers can sell directly to consumers by creating their own digital commerce channels.
In 2025, D2C sales are expected to be worth more than $100 billion ( Approximately ₹8,600 Crores) in India alone. That’s why many manufacturers are considering going direct to consumers.
But how do you create a successful D2C strategy and grow sales on your ecommerce platform without alienating your relationships with retailers? Read on to know more about its benefits, challenges, application, and integration.
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Simply put, direct-to-consumer is when a brand sells its product straight to the end user instead of distributing products through retail partners. For example, a maker of tennis rackets can sell them through a sporting goods store (a retail partner). Or, they can take a direct-to-consumer approach and sell the same tennis racket directly to the player through a D2C channel. Common direct-to-consumer channels include ecommerce websites, social commerce, and apps. D2C channels often complement, rather than replace, traditional retail channels. For example, a confectioner might sell their candy in gift shops and sell directly to consumers online.
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B2C describes any company selling products to the end consumer. D2C is when the maker of the product sells it to the end consumer. A B2C company could be a retailer, marketplace operator or a manufacturer selling D2C. However, it’s possible - and becoming more common - for brand manufacturers to sell their products in two ways, through two different channels:
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Relying solely on third-party retailers or marketplace operators for your sales comes with certain challenges. For example, retailers and operators often charge fees for each sale, which can reduce your profit margin. They may also have rules and policies that hinder your creativity when it comes to branding and merchandising. Additionally, selling through retailers means that you need to compete with other manufacturers for shelf space - whether digital or physical - which can affect your brand’s visibility and sales.
That’s why companies in many industries are launching direct-to-consumer channels. When a company looks beyond its wholesale strategy to include D2C channels, they can tap into new opportunities to build relationships with existing customers, expand their reach to new audiences and grow sales beyond the limitations of current retail partners.
The benefits of DTC channels go beyond increasing sales. Here are a few other ways that going direct to consumer can drive success for your business:
One of the biggest challenges when it comes to going direct to consumer is maintaining your relationships with retailers. If you’re adding a D2C channel to supplement your strategies with third-party retailers, you’ll need to consider how to manage these business partnerships. Some retail distributors may see a brand’s D2C expansion as a threat to their partnership and to their bottom line. This reaction is understandable. Concerns companies commonly have when brands go D2C include:
However, a smart D2C strategy can actually complement existing channels and boost sales for everyone. You can help to assuage retail partners’ concerns by explaining how your plan can benefit them. Here are five tactics consumer goods companies can use to avoid channel conflict when going direct to consumer.
It’s important to recognise and appreciate the symbiotic relationship between your D2C initiatives and your distributor network. That helps you to find ways to integrate your marketing efforts and improve sales for everyone. However, some channel conflict is inevitable. Besides your own B2B and B2C channels, it can come from marketplaces and platforms such as Amazon, affiliate networks that promote your products for you and even your social media channels.
Mitigate that risk and compensate with mutually beneficial initiatives. For example, load up wholesalers with items that have demonstrated broad consumer interest. Keep more specialised items on your D2C site. This plays to the strengths of each channel.
Relying too much on retail partners can limit your growth. Strengthen your position in the market by adding D2C channels to complement existing wholesale channels. The best ways to initiate D2C sales are with a branded website or owned retail channels.
The adoption of the Direct-to-Consumer (D2C) model in India’s fast-growing retail landscape is both rapid and transformative. Below are two success stories that highlight how D2C strategies are driving measurable business growth and delivering exceptional customer experiences.
Create a smooth and engaging shopping experience through D2C
Pepe Jeans transformed its digital shopping experience by streamlining the shopping experience, resulting in a smoother, faster path to checkout and significantly reducing drop-offs. Smart product recommendations helped keep customers engaged, encouraging optimised exploration and repeat visits. The brand also enhanced performance: first-time visitors experienced page load times of under three seconds, contributing to improved satisfaction and conversion rates. By integrating with leading social platforms, Pepe Jeans achieved greater visibility and interaction, with cart abandonment rates dropping to less than 1.5%. With access to real-time insights into consumer behaviour, sales trends, and conversions, business leaders were able to make faster, data-driven decisions that supported continued growth.
Transform engagement and operations with a unified customer view
By streamlining and automating customer journeys, Jaipur Rugs improved customer and employee experiences. Streamlined lead-to-order management processes improved conversions and efficient order fulfilment, while a single source of customer truth helped personalise customer interactions. Effective audience segmentation and targeted email and SMS campaigns deepened customer engagement. Capturing service requests from multiple channels on one platform enabled seamless, omni-channel service, and a 360-degree customer view helped resolve service requests faster. Powerful reporting tools consolidated data from CRM, ERP, and other systems and offered actionable insights.
As a result, Jaipur Rugs achieved a 30% increase in lead conversions, a 40% improvement in customer satisfaction, and a 30% improvement in case handling productivity.
Sometimes your customers are browsing in retail shops. Sometimes they are there to get their hands on your product immediately. But more and more, they are searching and shopping online. A direct-to-consumer channel lets them get closer to your brand, learn more about your products and find exactly what they need. Adding a D2C channel to your distribution mix can help your company improve, grow and even strengthen your relationships with your distribution partners.
Direct-to-consumer is when a brand sells their product straight to the end user rather than relying on retail partners. Common direct-to-consumer channels include ecommerce websites, social commerce and apps. D2C channels often complement, rather than replace, traditional retail channels.
Unlike traditional retail, where third-party sellers control the customer experience, pricing, and delivery, D2C allows the manufacturer to own the customer journey, from discovery to delivery. While D2C channels often complement existing retail strategies, they offer more control over profit margins, branding and customer satisfaction.
In contrast, selling through retailers means that you need to compete with other manufacturers for shelf space, be it digital or physical, which can affect your brand’s visibility and sales in return. That’s why companies in many industries are launching direct-to-consumer channels to build stronger customer relationships. With the support of technology-led shopping experiences like personalized recommendations, seamless checkout, and real-time customer insights, D2C brands can create more engaging, efficient, and data-driven journeys that deepen loyalty and drive growth.
When a company looks beyond its wholesale strategy to include D2C channels, they can tap into new opportunities to build relationships with existing customers, expand their reach to new audiences and grow sales beyond the limitations of current retail partners.
The benefits of DTC channels go beyond increasing sales. Here are a few other ways that going direct to consumer can drive success for your business:
Selling to retailers and other businesses is different from selling to consumers. Consumers have different needs and expectations and you’ll need to tailor your D2C channels to meet them. Here are a few challenges unique to D2C (and how to overcome them):
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