As a manufacturer, wholesaler, or distributor, you are well aware of the seismic shifts in the retail industry. Consumer demand for greater convenience and value, startup companies with disruptive business models, and the “Amazon effect” are drastically changing the retail landscape. How do you equip your business to face the new world order?
How can you best leverage these trends to make sure your company is profiting and growing? Add business-to-consumer (B2C) capabilities into your business-to-business (B2B) business.
- Direct-to-consumer (DTC) – Manufacturers are increasingly selling through DTC channels. The trend is being led by startup companies – such as Dollar Shave Club, WarbyParker, Casper, Everland, and The Honest Company. As newer brands capture the minds and wallets of consumers, Nike, Under Armour, P&G, VF Brands, and other incumbent brands are fighting back with aggressive DTC sales targets. In fact, Unilever, one of the world’s largest consumer goods company, purchased Dollar Shave Club for $1 billion.
- eCommerce role in DTC – Many brands using the DTC model rely exclusively on online channels. Online retail sales is expected to reach $452.76 billion, accounting for 9% of total retail sales.
In the B2B world, business buyers are expecting the ease, convenience, and personalization available on consumer sites from their business partners. In fact, business-to-business (B2B) eCommerce was more than double that of retail online sales ($829 billion) in the US last year. Building out or creating a system that supports both customer-facing and back-office operations for both retail and business sales is critical.