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The two years we have been in crisis due to the pandemic has forced people to change their personal and work interactions, and undoubtedly technology has been a determining factor. This particularity will continue to manifest itself in the future, where things will not go back to the way they were before, influenced by the campaigns on social media that, without being extreme, have been effective.
DTC brands began to try out tools such as videos, using influencers to spread the word about their products and also forming teams to help build online communities. Regardless of the strategy they adopt, the ultimate goal of DTC brands is to drive word-of-mouth marketing.
DTC brands are those that reach the consumer directly and only sell online. Although some have created emerging channels to complement the omnichannel journey that today’s consumers expect, they generally bypass retailers.
This model is focused on creating direct-to-consumer (DTC or D2C) strategies, a tactic that has provided great effectiveness in reaching into customers’ lives. DTC brands are also investing in online communities to humanize, increase customer retention and overcome skyrocketing advertising costs.
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In fact, direct-to-consumer eCommerce sales generated $111.54 billion in the U.S. last year, so it’s no surprise that DTC brands are doubling down on the growing trend. Market research firm eMarketer predicts that DTC sales in 2023 will reach $174.98 billion.
Hans Kluge, WHO Regional Director for Europe, argues that “the pandemic has pushed us to be more technological, to expose us more to new technological tools. The most transcendental part is seen in interpersonal communication,” a circumstance that opened up great opportunities in the eCommerce space.
With the crisis, digital content consumption increased on social networks and advances relentlessly through the Internet. One of the tools most used by DTC brands is video, which unlocks the power of social media commerce.
On the other hand, the drastic drop in the return on advertising investment pushes brands to build customer loyalty for life, promoting their loyalty, where trust is the key point of the future of e-commerce, and making social networks the epicenter where users spend most of their time.
Social media networks are not only an excellent virtual showcase and consultation but also generate another series of advantages for commerce, such as interaction, trust, and speed.
The landscape of eCommerce activity converges in these applications, from brand marketing to direct customer service and promotional actions to the final purchase.
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