The 5 Points of Courage for Manufacturers Wanting to go DTC
Channel conflict is still a flashpoint in direct to consumer eCommerce between manufacturers and retailers - despite us having more than two decades to sort this out. Many manufacturers are still afraid of backlash while taking their first D2C steps.
Here are a few points to give you courage:
It's about the consumer. Likely these retailers have other brands taking similar steps. Why? You get to learn and serve your customers better.
Retailers can't have it both ways. They only want to buy a limited assortment. Either they need to carry more of your product (perhaps via drop shipping), or they need to let you offer it to direct. To shut off both options is unrealistic in 2020.
You can set a channel pricing policy - work with your partners to ensure that there is price consistency anywhere the consumer may shop to avoid confusion and undercutting.
You can offer unique or custom products. New colors and styles are ways to excite consumers about your brand, helping drive sales in the "staples” that your retailers are carrying.
Retailers don't care about your feelings. House brands are ascending. Channel partners can cannibalize any of your products. If the consumer doesn't see the value in your brand, whose fault is that?
I would encourage any brand considering going DTC to first build a story about how their entry into the market will help the consumer. Be honest. Answer a few simple questions:
What are you offering unique and different?
How do you plan to use it to amplify purchases across all your channels, instead of it being a zero-sum proposition?
What about your experience elevates the brand in the mind of your consumer?
How does your site help consumers make better decisions about real problems they are facing?
Without that story, you have nothing.
I also want to share this post about branding in the era of disintermediation. Some very smart points in here.
