insights! #53: How can manufacturers strengthen their presence in consumers' minds and grow in competition with retail?
Joubin RahimiManaging Partner · synaigy2 min read
“Even though buying in retail is (still) a habit, manufacturers are winning people over with a better image.” That's the first thesis of the D2C study we set up and examined together with IFH! There we looked at consumers' expectations and purchasing behaviour towards manufacturers and retailers and obtained unique results.
77% of previous non-D2C buyers prefer retail out of habit
The study's findings underline the need for manufacturers to strengthen their presence in the consumer purchase decision process while leveraging positive image factors to increase buyer perception and loyalty.
The study shows that manufacturers in the home & garden sector are not yet anchored in the relevant purchase decision set of many consumers. This is because, for many, buying through retail remains the first port of call due to habit and a lack of consideration of manufacturers as an option. About 77% of previous non-buyers prefer retail out of habit, while 68% of this group have never even considered buying directly from the manufacturer.
The purchasing decision is largely shaped by the respective situation. Spontaneous purchases and the desire for immediate availability tend to lead consumers to retailers. Buyers, on the other hand, prefer direct contact with manufacturers, particularly when it comes to information on the manufacturing of the product or the availability of spare parts.
Interesting result: positive perception of manufacturers regarding soft factors like trust, sense of security and loyalty. These soft factors play decisive role in evaluating manufacturers versus retailers.
Recommendations and further insights can be found in this insights episode as a podcast or video on YouTube, as well as in the study: https://kampagnen.synaigy.com/de/d2cstudie
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Great to have you back for a new episode of insights. My name is Joubin Rahimi and today we're not at the news desk, but looking at the first thesis of our study on D2C in the HVAC sector. Since we've packed it with so much information and detail nuance, this time with paper in hand.
We put forward the thesis that "even though buying via retail is still habit, manufacturers win over customers with a better image."
Who among you doesn't know this? Who among you goes into the DIY store and buys things? But online I don't go to the DIY store's website, but rather to the manufacturer I'm looking for. And that's of course one of the core questions: why is that the case? On this question, those who aren't yet D2C buyers said, in retail, 77 percent, I'd always rather buy through retail. And of those who have already bought before, 68 percent would rather buy through retail. The other way round, that means around 30 percent would also buy from the manufacturer. If we think back 20 years, that number was certainly noticeably lower. That means our recommendation for action: it's totally important to know the customer, the relevant set, so that we can ultimately meet exactly this need. And that's not just at the point of purchase, but before and after too. The second recommendation for action we could draw out is that the situation totally shapes the purchase decision.
We have three further pieces of information.:
Point 1, of course, the study. After providing your name, e-mail address and phone number. And yes, we'll call you too and look forward to a brief chat. Even if you're not interested or not our ideal customer, you'll receive all the data from this study that will then help you: https://kampagnen.synaigy.com/de/d2cstudie
Point 2, the core of this study is Customer Experience. That means we have developed a maturity model showing where you stand with your Customer Experience. You get this by answering seven questions plus recommendations for action tailored to your situation. https://kampagnen.synaigy.com/cx-readiness
Point 3 as a starter package with the ECC Next, the corresponding consulting arm of the Institute for Retail Research, and our specialists from strategic consulting, a starter offer to move forward on the topic quickly and efficiently without any waffle.
Have questions or feedback?
Then feel free to contact us directly.
- Joubin Rahimi
Managing Partnersynaigy
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