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Beverly Hills Chamber of Commerce
  -  “How to’s”   -  Out-of-the-box Direct to Consumer Strategies for 2020

Studies show that direct-to-consumer (DTC) brands are changing the world of ecommerce by incorporating digitally creative and “disruptive” strategies to gain more visibility and brand loyalty, particularly with Millennials and Gen Z’ers. Many indie brands are also launching innovative campaigns and customizing products centered around consumer preferences and feedback.

The DTC approach for many indie brands means building and nurturing more meaningful brand-consumer relationships and creating a sense of community with consumers.

So why is everyone talking about direct-to-consumer ecommerce?

In a nutshell, this strategy is all about brands working to build better relationships with consumers while sharing their unique brand story without having to go through a middle-man to disrupt that process. The product basically goes directly to the consumer instead of a big retailer, thus creating more opportunities for brand loyalty, authenticity, and transparency.

There are many benefits to going the direct-to-consumer route, including getting to really know your consumer on a personal level through direct and efficient feedback; as well as cutting down on inventory costs, as AdWeek explains.

More indie brands are turning to DTC to help provide exclusive options to loyal consumers. Brands like MeUndies have focused their efforts on giving consumers a chance to be a part of the collective brand experience, while giving exclusive perks through a personalized membership program, for instance.

MeUndies provides both affordable and sustainable undergarment options for both men and women. It also is committed to inclusivity, as reflected on their Instagram feed spotlighting couples wearing their membership-based pair undies.

The brand takes an interesting approach in selling undies by offering membership or encouraging couples to purchase matching pairs of underwear that’s delivered straight to the consumer’s door every month.

This membership strategy gives consumers the opportunity to choose exclusive prints and pick and customize the style, size, and shape of their favorite pair of underwear — giving full reign to consumers to be in charge of the unique clothing options available to them. This strategy gives consumers the chance to be a part of the experience, and to feel like they are being heard by a brand that cares.

Consumers are more likely to show brand loyalty with brands that follow the DTC model, provide affordability, and show a sense of understanding of the modern consumer and keep the feedback loop for their consumers open.

For brands that take the DTC approach, consumer input is very important to them because it’s what helps their brand truly stand out from major retailers. This approach is enough to pose somewhat of a threat to big retailers and “legacy brands” that might not have the advantage of a niche line, however.

Some large companies are concerned that they don’t have the same charisma as indie brands. In fact, the Globe and Mail reported that in the past few years, large companies lost billions of dollars to smaller, independent brands.

But there’s also plenty of room for big brands to take away key ideas from the successful indie brand DTC movement such as incorporating a strong mission statement to amplify or strengthen brand loyalty, and to create an authentic bond with consumers beyond the product. Being transparent and also having a social media presence can help big brands focus more on what their brand can offer beyond the product.

These days, it is not enough to have a physical presence. Brands must also be digitally creative and come up with daring and innovative ways to help consumers be a part of the experience. Brands must also align themselves with authentic storytelling and social causes they are most passionate about as well.

For more information regarding Direct to Consumer Strategies for 2020, read the full article by Absolute Web here.