D2C is a business model that captures the essence of consumer needs and has shifted from value based on specifications (things) to value based on usage (experiences) . For example , Allbirds sells shoes (things), but consumers are buying an environmentally friendly lifestyle (experiences) . In B2B , too, the emergence of the outcome economy, which charges for the success of client companies, is causing a restructuring of value.
YouTube and Instagram, which D2C uses for digital marketing , are often used by millennials to Gen Z. They buy products as a ticket to enter the worldview and content of the brands they see on social media .
It is possible to define D2C as selling products directly at low prices , and DNVB as increasing brand value . However, if a DNVB specializing in mattresses expands its sales of lighting and other products, it becomes HB (horizontal) rather than VB . When major companies start digital marketing, they become AN (analog native).
There is stable demand for replacement purchases of consumer goods such as clothing and shoes. Durable consumer goods such as bedding and furniture lock in customers, allowing for long-term service charges. In both cases, the needs are readily apparent, making it easy to enter the market . Differentiation is possible by selling products with added value in the form of experiences in a market filled with similar products.
D2C brands are not created by local craftsmen, but by masterminds with a deep understanding of digital marketing . They adopt the Apple model, offshore manufacturing and bring design and service in-house, placing value on the brand's worldview (story) . Rather than imposing a brand's worldview (story), they let the customer speak for themselves (narrative).
The value that D2C brands possess is unstable and fluid, based on their customers, the evangelists they create, and the value of the experiences they share . To maintain this value, they continue to burn fuel in the form of content and solutions that stimulate demand.
Of the approximately 160 brands selling commodity products online in 2013 , only 30 % survived, with many entrants in the fashion, beverage, and other daily necessities sectors, while 80 % survived in niche areas such as general merchandise and educational materials for young children . There are many success factors to learn from the strategies of the surviving companies, such as directing consumers who have graduated from subscriptions to e-commerce , flexible review of prices and payment models, and a shift from product value to experience value.
No matter how valuable an item is, it won't sell unless its craftsmanship and tradition are recognized as being worth the price . Media commerce uses its own unique worldview to communicate the greatness of an item (media) and sell it to people who share that message (commerce), and recently has even developed original products, which has resulted in it approaching D2C .
Consumers' latent needs lie beyond the purchase of goods, but the quality of the goods supports the experiential value . Experiential value, such as getting good quality sleep every day without allergies by buying bedding made from natural materials, or expressing your opposition to labor exploitation by buying ethically produced jewelry, cannot be achieved with goods of poor quality.
It is inevitable that customers will choose you, in other words, by providing the optimal solution to their latent needs. An era will come in which even worldviews will be commoditized. At that time, products (things) will play a major role in providing the optimal solution to customers' latent needs.