How pandemic effected Direct to Consumer (D2C) businesses?

December 14, 2021

Pandemic effects on D2C - Trakop

With the Covid-19 halting the lives in almost every part of the world, the businesses suffered the most. Most brands and businesses had an only way that was to rely on the online mode channel of products reaching directly to consumers.

Due to the lockdown, people wanted to buy things but because of the restrictions donned, they were unable to do so and only trust on the online mode so the Direct to Consumer (D2C) approach became a must during the pandemic and to increase the sales in the Covid situations the brands gradually started to move towards the D2C approach.

As a result of this, the brands started shifting to the D2C approach to make sure their business is alive and realized that not only during a pandemic but even afterward their sales graphs have gradually increased from 30-40%.

Direct to Consumer Boom during Covid-19

It’s a fact that during Covid many big and major brands have suffered very much loss in their sales as the selling of the product to the customers just stopped and the revenue generation process also got stuck which forces the businesses to think out of the box and get the process somehow on the track.

Some advantages oif Direct to Consumer (D2C) business model…

Hence, the only option left with the brands meeting their customers halfway. With the D2C approach, the businesses got a lot of control over their brand and got to know the customer choice for the product and resulted in higher sales rate and profit margins really got increased and as a result of the market opportunities also grew where you can target another set for the audience.

Consumers Shift to Digital Channels

The benefits of shifting to digital channels are many but to name a few are that it eliminates the gap between the producer and the customer which gives much better control over your brand, reputation, marketing, and sales tactics. As a result, it will engage the producer and give a better opportunity to him to get involved with the customer and hence get to know him in a better way.

Consumer online behavior is here to stay

The consumer has one thought while shopping online, first, one being that the products have been praised by many of his known community and they value the consumer thoughts so if the consumer finds himself in any situation then the company is there to help him take out from that situation so as far as the customer is getting a good response and support from the company he is there to purchase.

Companies accelerated their adoption of digital, automation, and other technologies

During the COVID-19 scenario, happening worldwide, according to a report consumers have moved dramatically towards online channels and companies have responded to them back in a very nice way. The survey conducted also reveals that the rates of adoption by the customers and the brands to this approach are many years ahead of where they are actually when the previous surveys were conducted.

Brands that cultivate the right talent will thrive

Only those businesses grow that have a definite goal. So to reach out to customers using the right approach is the only way to sell the products to customers through the online channel, and the businesses having the right channel to reach customers will survive.

Look Beyond the pandemic to a greater trend

Global digital transformation in the past years has broken all the previous records and reached another level. The lockdown has changed people’s mindsets.

For example, the milk industry was the one that has started the Milk Delivery App to deliver milk to all the houses in the need, which had a very positive effect on this industry.

So if we look beyond the scenario of Covid, there is a lot more scope in the D2C approach where businesses can relate to customers’ impersonal level and gain their trust for long-term results.

Hope You Enjoyed the Read!

Ravi Garg Founder & CEO

He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.