Online sales have increased at an unheard-of rate over the last two years. By 2025, it is anticipated that the region’s online retail market will have grown to $2.8 trillion. More than 90% of customers in APAC anticipate shops selling their goods online, demonstrating how integral digital interactions have become to the entire buying process, from product research to purchase.
Brands are exploring diverse omnichannel ecosystems in response. Nike aims to have a 40% owned digital business by 2025, and Coles, a traditional offline retailer, is making innovative strides online. Digital-first beauty brand Nykaa is opening up physical stores, and small-and medium-sized businesses are reaching global consumers at scale through partners like Shopify.
They recognise that a direct-to-consumer (DTC) approach helps to future-proof their business in an increasingly competitive e-commerce landscape, which is a crucial characteristic of such astute firms with an eye on sustainable bottom lines.
Here are some ways a DTC approach can boost your brand’s sustainable business growth: through cultivating brand love and trust, gaining access to first-party data, and automating marketing.
DTC opens the door for brand love and aids in building brand trust.
While brand love has long been a target for marketers, brand trust has grown to be just as important because consumers are seven times more likely to buy from highly trusted brands. Importantly, the one without the other is no longer sufficient. According to Edelman’s Trust Barometer Special Report from 2021, four out of ten consumers claim to have stopped buying beloved brands because they lack faith in the organization.
People yearn for sincerity and transparency during difficult times. Consumers today are concerned about being duped, as evidenced by the 140% increase in “legit” search interest across APAC. However, consumers gladly support businesses they adore and are eager to reward companies that have earned their trust.
Brand-owned channels offer a special chance to demonstrate what your company truly stands for and to foster client affinity and involvement.
DTC makes it possible for businesses to grow steadily in a world where privacy is valued thanks to first-party data and marketing automation.
Additionally, organizations may use DTC channels to collect actionable first-party data in real time and to implement a marketing automation-driven, value-driven e-commerce strategy. In addition to connecting with high-value customers at scale, this helps brands to accelerate business growth and profitability.
Brands must collect data responsibly and openly as privacy concerns grow in order to meet consumer and governmental demands for internet privacy and to maintain consumer trust in their products.