What is Direct-to-Consumer (D2C) Business? How D2C Brands in India can Benefit from Self Service Kiosks?

The traditional supply chain for product delivery comprises Manufacturers → Wholesalers → Retailers → Consumers path. This model involves a long chain of players, the manufacturer finds it difficult to grab customer feedback easily. The Direct-to-Consumer model eliminates the wholesaler and the retailer from the supply chain and connects consumers directly with the manufacturers. This offers the biggest advantage of a deeper feedback loop and creates a direct relationship between the manufacturer and end-users. Additionally, this blog post throws light on various aspects of Direct-to-Consumer (D2C) businesses. We have provided a simple definition, advantages, and different ways to implement them. Also, we have provided information on how to leverage self-serve kiosks in implementing D2C models.

What is Direct-to-Consumer D2C: A Simple Definition

D2C is a Supply chain model of directly delivering products from the manufacturer to the end-user bypassing Wholesalers and Retailers. This model is a major changeover from the traditional brick-mortar model during the days of the covid-19 pandemic.

What are the key differences between D2C Vs B2C :

In a Traditional Supply chain model (B2C), the manufacturer sells the product to a wholesaler who then distributes it to the retailers and the retailers ensure the product reaches the end-user through a brick-and-mortar store.

Whereas in the D2C model, the manufacturer eliminates the wholesaler and retailer and sells the products directly to the end-users.

According to Statista, in India, the D2C market is expected to grow by over 15 times from 2015 to 2025. In 2020, the total D2C market was valued at 33.1 billion U.S. Dollars. By 2025, the total D2C market is forecast to grow almost threefold and reach 100 billion U.S. Dollars. Also, fashion and accessories lead in the market share.

D2C Market India in Billions of US Dollars ( 2015 to 2025)

Here we have identified specific advantages of D2C:

The manufacturer has Complete Control of Customer Data

As a manufacturer, you can procure complete statistics on customer behavior by analyzing the website and by obtaining demographic details of customers who are shopping for your products.  

Additionally, Data is the power. It enables your organization to map the customer journey and develop new products to meet consumer demand.

Have Better Control Over Customer Experience

Selling your products directly to the customer provides better insight into the customer’s buying journey. Moreover, it provides clarity regarding the medium customer chooses to buy the product (from Instagram or Facebook or any other media). Also, it helps to identify whether a customer used one-click checkout or bought time to purchase the product.

Nurture Better Relationships with the Customers

As a manufacturer, you have direct connectivity to the consumers. You have direct access to the customer’s details like email address, telephone number, postal address, etc. Helping you to directly market to them with SMS or WhatsApp or email marketing. Thus, you have a better rapport with the customer.

Three Popular D2C Approaches

Usually, Direct-to-Consumer (D2C) Businesses take up three popular approaches while implementing the D2C model and they are:

1. Collaborating with gigantic online stores like Amazon, Flipkart, or eBay.
2. Further, open temporary or permanent Pop-up stores at strategic brick-mortar setups like shopping malls or trade centers.
3. Also, they enter into brand partnerships to capture mutual audiences with like-minded retailers. 

How Pop-up D2C Shops Can Leverage Self-Serve Kiosks

The key idea of this blog post is to disseminate information on how temporary or permanent Pop-up shops established at strategic places like famous shopping malls benefit the Direct-to-Consumer (D2C) businesses to capture the market with little investment!

Moreover, it is obvious, that getting a shopping floor for rent or lease in an upmarket shopping mall premises is highly expensive. Instead, if you as a D2C player can take up a 2X2 square foot or 4X4 square foot place to install a small customized self-serve kiosk and lure customers to your offerings with minimal investment then nothing can stop your growth.

In addition, you can install such self-serve kiosks at Residential Apartments, Bus Terminals, Metro Stations, etc. to garner customer attention. Thus, Self-serve Kiosks operate as a window to your inventory using which customers can place orders for the products that they need without any hassles.

Moreover, Aidio being an OEM of self-serve kiosks and interactive displays can always customize it to suit your actual needs.     

Also, SelfServe Kiosks aptly address the major challenges faced by D2C players such as:

• Managing the operations of the business.
• Technology Enablement of Operations.

Advantages of Embracing Self-Serve Kiosks 

• Enhanced Customer Experience & Resonating Brand Values

Self-serve kiosks help to promote resonating brand value amongst customers and thus enhance the overall customer experience.

• Predict User Progression

Self-serve kiosks not only help to promote your products but can also be utilized to disseminate educational content to consumers. In fact, it can showcase content explaining how consumers can better do their jobs!

• Offer Futuristic Value Propositions

Self-Serve kiosks help your brand meet customers’ current expectations and exceed them. Your brand can bring value to the anticipated needs and demands of the future.

• Address Customers Needs 

Self Service kiosks offer the best mechanism to ask customers for any help they need on the ground. A rare commodity to be found in the current retail and Direct To Customers arena.

• Facilitate Customer-Centric Support

Engaging with customers post-transaction is vital. Self-service kiosks help you to communicate with customers on a frequent basis and understand customers’ habits, preferences, and complaints.

• Boost Customer Retention Rate

Self-Serve Kiosks come with a learning curve. If your customer doesn’t receive post-purchase updates they tend to lose track of why they are paying you and are less likely to renew subscriptions. Self-serve kiosks enable you to send post-purchase updates.

• Create Online Customer Communities & Focus Groups

Self-Serve enables your brand to build online customer communities and focus groups to keep them posted about your activities and create brand awareness.

• Conduct Follow-Ups On User Experience & Have a Call To Action

 Self-serve helps you keep customers happy through follow-up communications and ensure they are valued. Through this overall customer experience gets a boost. In addition, Self-Serve offers better ways to include Call To Action features.

About Aidio

Aidio, a Bangalore-based startup, an OEM of Android Displays  & Kiosk,  delivers a one-stop solution for all your interactive application requirements, Powered by a Customized Android motherboard, Smart edge computing capabilities,  Capacitive touchscreen & Professional LCD panels.

So, Get in touch with our customer support to implement robust self-serve kiosks to build better Direct-to-Consumer (D2C) Businesses.

Frequently Asked Question: What is a direct-to-consumer example?

Direct-to-consumer brands is a novel way of selling directly to customers online, bypassing the wholesalers and retailers. It helps to control the user experience, collect first-party shopper information and increase profits. Also, the top 10 D2C brands from India include Bombay Shaving Company, Mamaearth, The Moms Co., Plum, Loom Solar, Wakefit, Wow Skin Science, Sugar Cosmetics, BoAt, Noise.