Retailers have come to understand now that e-commerce is the most secure anchor to hang on to and that omnichannel is the industry's future. Among the other developments that have emerged in retail since the COVID-19 outbreak is the increasing change from retail firms, consumer goods companies, fashion brands and even farmers across the country to direct-to-consumer sales.
Mom-and - pop retail stores began to lose sales as millions of Americans remained confined in their homes to practice social distancing and the government closed down all but necessary retail outlets as a pandemic-prevention measure. The increase in online shopping for consumer products, grocery, food and beverages; and the increasing demand for home delivery services are driving retailers out of the shell and trying out creative sustainability business models.
As the
United States continues to be COVID-19's epicenter with over 5.44 million
positive events, the economy of the nation is significantly impacted and the
burden on companies to get it back on track is immense. All the country's 50
states have been getting back on their feet in the past few months. Yet a lot
has changed.
The pandemic
hit the retail industry in America hard, particularly brick-and-mortar
retailers, throwing a bunch of tough fight challenges at them, and some
fast-emerging market trends to keep up with. At the same time, though, it has
also opened up some huge opportunities for retailers to grab and stay
competitive amid COVID-19's market effect.
Manufacturers
or retailers sell directly to the customer in a direct-to-consumer model
without the intervention of intermediaries such as third-party distributors,
wholesalers, and retail outlets for distribution. This is usually achieved by
creating an online marketplace, or even a social media profile, from which
customers can search and place orders. The company then ships goods directly to customer markets,
using an in-house logistics facility or third-party transporters.
Direct-to -
consumer sales have been a steadily growing development for quite a while now.
Web traffic to D2C pages has doubled over the last two years according to an
eMarketer survey. But the pandemic has provided retailers and consumer goods
firms a huge drive to sell directly to customers, triggering a massive rise in
the industry.
Fashion and
clothing companies such as Levi's, Nike, and Adidas are going high on D2C
sales, reinventing their online sites, launching new products on a daily basis, and offering their customers customized product choices. Top supermarkets with
existing retail chains like Walmart and Publix also exploit this opportunity
and sell online to meet the demands of millions of people in quarantine.
The greatest
advantage of using e-commerce to go directly to customers is that it helps
companies to establish a partnership with their end-users. It also gives
manufacturers and retail brands a cost-effective sale choice. At the same time,
though, there is some significant competition from major online retailers like
Amazon.
Manufacturers
and retailers must also consider the logistical difficulties that may occur
when selling directly to customers. Not all brands have the best
transport management system in place and will need to rely on logistics
companies from third parties to ensure successful last-mile deliveries.
For those with an in-house logistics system, ensuring quick and timely delivery is a must, combined with excellent customer service. Retail brands do not forget that they have set out to please the consumer 'I want it ASAP' and 'Where is my order.'
Coronavirus
has shown us that the next big thing in retail is direct-to-consumer selling,
but to make it huge success brands need to strategically implement this
business model. Efficient
logistics is a must-have to ensure two-day and the same-day deliveries, and
technology such as fleet management, order tracking, and live status updates
will play a crucial role in boosting customer experience in D2C selling.
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