D2C and Existing Distribution Channels

Despite the undeniable advantages of the D2C (Direct-to-Consumer) model, manufacturers and brands often postpone its implementation due to fears of damaging relations with existing and established distribution channels—distributors, retailers, and value-added dealers.

However, experience and numerous studies of the D2C market by leading consulting companies such as McKinsey & Company, Forrester Research, Deloitte show that the effective implementation of a direct sales channel positively affects long-term relationships with partner companies.

When brands proactively manage their product marketing to end-customers, it creates high-quality rich product content for all sales channels (both its D2C and partner channels), leading to growth in conversions and sales. An effective D2C channel builds brand awareness and reduces CAC (customer acquisition costs).

Modern product management tools enable brands to build any form of multichannel marketing. Workflow, a part of the Syntes MDM platform, helps to quickly and conveniently automate information exchange with partner’s ERP/CMS systems in real-time. For example, it supports order integration between manufacturers/brands and their partners, providing current information on product availability in all distribution channels, whether online or offline.

Using this platform, brands can focus on selling small-scale and niche products through an official brand store, allowing trading partners to handle standard products with established systems for transportation, warehousing, and sales. It also allows manufacturers to test new products before bringing them to market.

The effective implementation of a direct sales channel
positively affects long-term relationships with partner companies

The introduction of D2C does not have to force companies to abandon other existing marketing channels. Ultimately, the efficient operation of D2C and hybrid commerce benefits the manufacturer and all its trading partners, minimizes risks, increases the product line’s diversity, and improves customer satisfaction.

Syntes, an international company, develops a next-generation MDM (Master Data Management) and PIM (Product Information Management) cloud platform and provides brands and manufacturers with services for creating, managing and automating D2C (Direct-to-Customer) sales and marketing channels. Syntes solutions and services are used by the world’s leading brands and manufacturers of consumer and business products such as Razer, Scarlett, Pantone, X-Rite, AVerMedia and others. Syntes is a registered trademark of Syntes, Inc.

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