{"id":8675,"date":"2020-08-21T13:44:16","date_gmt":"2020-08-21T08:14:16","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=8675"},"modified":"2024-03-20T15:12:09","modified_gmt":"2024-03-20T09:42:09","slug":"reasons-why-d2c-brands-are-doing-well-during-this-crisis","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/","title":{"rendered":"5 reasons Why D2C brands Are Doing Well During The Crisis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f4747a6ce37\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f4747a6ce37\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#reasons-why-d2c-brands-are-doing-well-during-the-crisis\" title=\"Reasons why D2C brands are doing well during the crisis:\">Reasons why D2C brands are doing well during the crisis:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#1-shift-in-consumer-behaviour\" title=\"1. Shift In Consumer Behaviour\">1. Shift In Consumer Behaviour<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#2-evolution-of-e-commerce\" title=\"2. Evolution Of E-Commerce\">2. Evolution Of E-Commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#3-d2c-brands-customer-retention\" title=\"3. D2C Brands &amp; Customer Retention\">3. D2C Brands &amp; Customer Retention<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#4-d2c-brands-value-storytelling\" title=\"4. D2C Brands Value Storytelling\">4. D2C Brands Value Storytelling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#5-d2c-brands-value-customer-feedback\" title=\"5. D2C Brands Value Customer Feedback\">5. D2C Brands Value Customer Feedback<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/#fundamentally-d2c-exists-to-serve-its-community\" title=\"Fundamentally, D2C exists to serve its community.\">Fundamentally, D2C exists to serve its community.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p><strong>D2C brands have seen a massive uptick during the pandemic to the extent that even heritage brands like Pepsi have entered the fray<\/strong>!<\/p>\n\n\n\n<p>At R-Vue Connect, our exclusive digital summit for retailers, we explored how D2C is tasting success during times of adversity, how D2C brands are approaching AI and technology in the context of customer experience, the additional steps they are taking on customer retention and more.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"730\" height=\"466\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/08\/The-Rise-of-D2C-Brands.png\" alt=\"\" class=\"wp-image-8677\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/08\/The-Rise-of-D2C-Brands.png 730w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/08\/The-Rise-of-D2C-Brands-300x192.png 300w\" sizes=\"(max-width: 730px) 100vw, 730px\" \/><figcaption class=\"wp-element-caption\">Sales in billion U.S. dollars, sourced from a <a rel=\"noreferrer noopener\" href=\"https:\/\/www.statista.com\/statistics\/1109833\/usa-d2c-ecommerce-sales\/\" target=\"_blank\">Statista<\/a> report.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left\"><span class=\"ez-toc-section\" id=\"reasons-why-d2c-brands-are-doing-well-during-the-crisis\"><\/span>Reasons why D2C brands are doing well during the crisis:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:25%\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\t\t<div class=\"wp-block-web-stories-embed web-stories-embed alignnone\">\n\t\t\t<div class=\"wp-block-embed__wrapper\" style=\"--aspect-ratio: 0.600000; --width: 360px; --height: 600px\">\n\t\t\t\t<amp-story-player>\n\t\t\t\t\t<a href=\"https:\/\/www.vue.ai\/blog\/web-stories\/d2c-brands\/\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img\n\t\t\t\t\t\t\t\tsrc=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/10\/Google-Stories-1-169x300.png\"\n\t\t\t\t\t\t\t\twidth=\"360\"\n\t\t\t\t\t\t\t\theight=\"600\"\n\t\t\t\t\t\t\t\talt=\"5 reasons Why D2C brands Are Doing Well During The Crisis\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tloading=\"lazy\"\n\t\t\t\t\t\t\t\tdecoding=\"async\"\n\t\t\t\t\t\t\t\tdata-amp-story-player-poster-img\n\t\t\t\t\t\t\t\/>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/amp-story-player>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:25%\"><\/div>\n<\/div>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-shift-in-consumer-behaviour\"><\/span>1. <strong>Shift In Consumer Behaviour<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As shipments and physical store visits came to a complete halt when lockdowns were imposed, revenues slowed down as well. Interestingly, D2C brands noticed a surge in online tractions and the resurgence of revenue via digital streams even after the lockdown!<\/p>\n\n\n\n<p><strong>The key takeaway from this shift to digital? New customers coming in at a faster pace, and existing customers coming back more frequently than was observed pre-lockdown.<\/strong><\/p>\n\n\n\n<p>D2C brands observed that digital is becoming the natural channel \u2014 for both existing customers and new customers.<\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-evolution-of-e-commerce\"><\/span>2. <strong>Evolution Of E-Commerce<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Discounts drew the first generation of e-commerce buyers online. The second generation however, is now looking at e-commerce as a genuinely better way to purchase. <\/p>\n\n\n\n<p><strong>India is at the inflection point as China was in 2003 during the SARS outbreak\u2014&nbsp; 2003 was the year Chinese consumers were forced to go online.&nbsp;<\/strong><\/p>\n\n\n\n<p>D2C brands are trying to capitalise on this buzz in digital activity. WakeFit, for instance, had plans to launch a new home collection in December 2020. However, after observing a spike in online activity, the brand expedited its R&amp;D, production &amp; manufacturing and launched its collection during the lockdown!<\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-d2c-brands-customer-retention\"><\/span>3. <strong>D2C Brands &amp; Customer Retention<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Among India&#8217;s 450 million connected users,  100 million shop online, and from this bracket, an estimate of 40 million users shop online regularly. D2C brands must prioritise this bracket of consumers in their digital transformation efforts right now. <\/p>\n\n\n\n<p><strong>What happens after, is that 450 million users will grow to 800 million in a few years and as the number of players increase and brands try to grow, the cost of customer acquisition will skyrocket. This is precisely how customer retention becomes important. <\/strong><\/p>\n\n\n\n<p>As brands scale and acquire, they cannot afford to in a situation where they can&#8217;t service a customer again, simply because reacquiring the customer will become too expensive!<\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-d2c-brands-value-storytelling\"><\/span>4. D2C Brands Value<strong> Storytelling<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are 3 different types of consumers: <\/p>\n\n\n\n<ul>\n<li>consumers who discover a brand when they\u2019re looking for something <\/li>\n\n\n\n<li>those who have had great offline experiences with the brand<\/li>\n\n\n\n<li>and those who shop the brand simply because they like the brand <\/li>\n<\/ul>\n\n\n\n<p><strong>The greatest stickiness is from customers who identify with the brand\u2019s values and its story. This is the segment of consumers that direct-to-consumer brands are actively acquiring, converting, and holding on to.<\/strong><\/p>\n\n\n\n<p>The messaging of the brand\u2019s products, values and story &#8211; both online and offline &#8211; have to be consistent at all times because consumers today are very aware of what\u2019s going on around them, and have clear, specific expectations from a brand.&nbsp;<\/p>\n\n\n\n\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5-d2c-brands-value-customer-feedback\"><\/span>5. D2C Brands Value Customer Feedback<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Most D2C brands therefore, highly value customer feedback which they prioritise and fix to deliver maximum customer delight. The receipt of customer feedback is an ongoing process. What does this imply? The most successful D2C brands are backward integrated. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"fundamentally-d2c-exists-to-serve-its-community\"><\/span>Fundamentally, <strong>D2C exists to serve its community<\/strong>.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"410\" height=\"1024\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/09\/D2C-blog-infographic-410x1024.png\" alt=\"reasons why D2C brands are doing well during the crisis\" class=\"wp-image-8701\" style=\"width:469px;height:1171px\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/09\/D2C-blog-infographic-410x1024.png 410w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/09\/D2C-blog-infographic-120x300.png 120w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/09\/D2C-blog-infographic-768x1920.png 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/09\/D2C-blog-infographic.png 800w\" sizes=\"(max-width: 410px) 100vw, 410px\" \/><figcaption class=\"wp-element-caption\">Reasons Why D2C brands have been profitable during this pandemic<\/figcaption><\/figure><\/div>\n\n\n<p><strong>If you missed our R-Vue Connect session on &#8216;The Rise of D2C&#8217; &#8211; access the recording <a rel=\"noreferrer noopener\" href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:6701008054441394176\" target=\"_blank\">here<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> D2C brands have seen a massive uptick during the pandemic to the extent that even heritage brands like Pepsi have entered the fray! At R-Vue Connect, our exclusive digital summit for retailers, we explored how D2C is tasting success during times of adversity, how D2C brands are approaching AI and technology in the context of  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":8679,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1162],"tags":[718,795,720,721,799,798,796,725,247,327,195,588,797],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Reasons Consumers Are Opting For D2C Brands In 2020<\/title>\n<meta name=\"description\" content=\"Why are D2C brands tasting success during the pandemic? How are D2C brands approaching AI and tech in the context of customer experience? Find out here.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/reasons-why-d2c-brands-are-doing-well-during-this-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Reasons Consumers Are Opting For D2C Brands In 2020\" \/>\n<meta property=\"og:description\" content=\"Why are D2C brands tasting success during the pandemic? How are D2C brands approaching AI and tech in the context of customer experience? 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