Retail Asia 2018 RA September.October 2018 (Online) | Page 8

ONE VIEWPOINT
Skipping the middlemen…
Three things D2C
companies are
getting right
Emily Hamilton
C o - Fo u n d e r a n d
C h a i rwo m a n ,
S u pe r n ova
The rise of e-commerce has given a huge
nudge for Direct-to-Consumer (D2C)
players to reach their desired customers.
Is the digital era more favourable to
this group of retailers with their nimble
business development approaches and
millennial-friendly marketing strategies?
T
he direct-to-consumer (D2C)
brands of today are skipping
the middleman and using a
digital ecosystem to reach out
to customers. In South-east Asia alone,
the Internet economy is a whopping
US$50 billion — driven mainly by
massive e-commerce companies. As
of January this year, a staggering 920
million people in the region had mobile
subscriptions.
With mobile connectivity at 141%
and an Internet penetration rate of
58%, it’s no wonder that brands are
taking their operations in South-east
Asia online. D2C companies have burst
upon the scene because of their highly
accessible nature that uses an array of
digital tools to connect with consumers.
Social media to provide
a curated customer
1
experience
Companies with a wholly digital
existence connect with their consumers
in a truly unique way, deploying social
media to provide online customers with
an immersive experience. By establishing
a consistent presence on multiple online
platforms, D2C companies have been
able to develop genuine, long-lasting
relationships with their target audience.
These brands directly and effectively
communicate their marketing message
in the form of posts, videos and other
interactive visual and aural media.
Consumers can access the content no
matter what time they visit the brand’s
pages or which type of screen they use
and let the brand know their opinion
of the products by liking, commenting,
sharing and reviewing. Thanks to this
feedback, brands can fine-tune their
offerings according to the real-time
suggestions and views of netizens.
D2C brands use their social media
presence in many ways to connect with
6
Retail Asia September/October 2018
consumers. For instance, a Manhattan-
based indoor cycle-manufacturer and
lifestyle streaming service provider uses
its instructors to engender consumer
loyalty and give rise to communities of
fitness enthusiasts.
An online luggage-maker uses a
combination of in-house and user-
generated Instagram posts to create a
visual tapestry of travel and lifestyle
content.
data to better
understand consumers
2 Using
Thanks to the digital era, such
augmented interaction between
consumers and brands allows brands
to collect massive amounts of personal
data. Gone are the days when companies
In South-
east Asia,
subscriptions
models are
offered by D2C
brands operating
in a variety
of industries:
beauty,
beverages,
books, fashion
and even food.