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Some CPG Companies Are Still Ignoring DTC Opportunities

August 10, 2018: 12:00 AM EST
An article on Forbes.com suggests that CPG companies are facing myriad challenges, and many are losing market share by neglecting to address some of the changes in industry, notably the direct-to-consumer channel. The DTC model is not a panacea, but brands should consider how they might benefit from a DTC approach. The author highlighted a number of reasons for exploring DTC opportunities. Online sales are expected to contribute half of retail growth through 2025. Other benefits include the ability to test and launch new products in a less constrained environment; opportunities to gather consumer data; and interacting with consumers directly, to build a direct relationship and loyalty. Products that proved successful online could be extended to offline channels, and the testing period can be shortened significantly. NatureBox, for example, introduces over 40-50 new products each year, selecting those to keep on the basis of customer feedback. Traditionally, brands have had little chance to get to know their consumers, but DTC offers them a way of talking to them directly without having to rely on syndicated or panel data. However, the decision to go DTC needs to be backed up by a strong proposition and a strategy to retain customers.
Steve Olenski, "3 Reasons Every CMO Should Consider The Direct-To-Consumer Model", Forbes.com, August 10, 2018, © Forbes Media LLC
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