insights! #56: D2C study examines the question: is limited brand awareness the main barrier for product providers?

Great to have you along for a new episode of insights. My name is Joubin Rahimi and by now I've really grown fond of this table. Today it's about the fourth thesis: "Manufacturers' lack of brand awareness often drives consumers into retail."  

What are we trying to say with this thesis? No awareness, no purchase sounds fairly clear at first. And the study proves exactly that too. Namely, 55% of non-D2C buyers say they simply don't know that there are suppliers in that space where they could buy directly. And so they don't even look for it. We're also of the opinion that it's not really the typical case that I'd say, I want to buy directly from the manufacturer. But everyone has a challenge, a problem, and wants to buy something to get that problem solved. And that's why it's hugely important within this D2C strategy to say: I have awareness. Sure, everyone knows Gardena, Stihl. But there are lots of other brands that also have top products, that have a particular niche, have their desired customers, but the end customer doesn't know about them. And in the course of the internet, it makes total sense to inform not just the intermediary, not just the retailer, but really the buyer too, accordingly, that there's one out there on the market.  

The second area, which is really exciting, is that a considerable number of respondents said we don't even know, so 35% said, we don't even know that you can buy directly from you. I want to. I don't know. It doesn't even occur to me. And here too we say, that's simply money being lost. Either margin or indeed revenue, because then something else gets bought in retail instead. And this visibility, this purchase intent, needs to be captured much more strongly in users' browsing behaviour, so that you as a manufacturer can act directly too. Really important low-hanging fruit from our point of view.  

The final insight from this thesis is that manufacturers simply get lost in the jungle of retailers. Of course, because manufacturers aren't used to fishing, angling, in this red ocean, this red sea. All the sharks are in there. And the figures on this were interesting too. So a large number of D2C buyers simply prefer to buy from retailers. That's 60%, and it's no small percentage either, but a considerable one, 48% of D2C buyers say, by the way, that they're not even aware that the respective manufacturers also sell directly, and 36% say it's far too much effort to search for that. I really understand that last part, because we want to buy convenience, and it's not about buying from the manufacturer for us. But what's interesting in this construct is that within this whole oversupply from retailers, I have to position myself very clearly again, work out my niche very precisely. Where do I move as a manufacturer, who do I want to address? What is their pain point that I offer the solution for? Then you have a much better customer story and can move forward massively there.  

Example: I have garden and want water garden. Gardena have watering plan. Great, you have configurator. I can work it out. Great step forward. Only can't buy yet quite so easy. But that of course process where they must go. Other side, if I don't have watering project, but holistic garden project, where besides watering I also plant flowers, build terrace and co, then my case totally different. Situation different there. So we come back to episode number two. Totally important, which customer situation I move in, and I must know as manufacturer, where my added value, and place it best possible. 

We have three further pieces of information: 

Point 1: the study after providing your name, e-mail address and phone number. And yes, we'll call you too and look forward to a short 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.  

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.  

Point 3: as a starter package with ECCNext, the corresponding consulting arm of the Institute for Retail Research, and our specialists from strategic consulting, a starter offer to move forward on this topic quickly and efficiently, without any waffle.