#21 Innovative D2C For B2B & B2C Expansion in the US

An Innovative Strategy to Catch Two Birds with One Stone

The direct to consumer (D2C) business model, in which manufacturers can freely communicate with buyers and sell products, is increasingly being utilized during the pandemic crisis. As companies that have succeeded in D2C emerged, the number of companies introducing D2C as a new growth engine increased significantly, and the D2C market is exploding. D2C is a model that provides superior price competitiveness and real-time response to customer needs as there is no intermediate distributor. This allows it to be more effective in the current pandemic, which requires minimal face-to-face contact, and D2C is becoming more prominent in the global market as a whole. For example, in the Indian e-commerce market, the D2C method has emerged as a strategy to overcome the coronavirus.

However, the introduction of D2C should not be limited to simply switching channels. Since 2017, Nike has been focusing on building consensus with consumers as an innovator by adopting D2C as a core distribution strategy to resolve their stagnation in North America, and finally stopped selling products through Amazon in 2019. 

A more active D2C method based on a branding strategy of ‘trust’ and building consensus should be used as an opportunity for a leap forward to the global market to catch two birds with one stone for international companies planning to expand overseas markets.

In addition, D2C is not necessarily limited to consumer products, but rather can be a shortcut to securing larger B2B buyers in the North American market. The key is to utilize strategic messages and channels based on accurate targeting based on sufficient B2B insights. Through the use of an omnichannel approach, more active and strategic tactics are used so that the needs for companies and products are met in a short period of time. As technology continues to develop remarkably, more effective platforms are spreading to all industries.

Through a campaign that combines live commerce, virtual exhibitions, and lead generation, our team at BDMT Global recently maximized sales of companies through a B2C & B2B strategy using D2C, and in the North American market found success with healthcare, bio, K-beauty, technology, and more industries. It was able to lead the successful expansion of Korean and 

Asian companies to the North American market and to maximize sales by building relationships with B2B buyers around the world. The new normal era is a time when a major shift in strategy is needed. According to the CMO survey, “innovation” is the top major challenge for marketing leaders in 2021. Direct communication with customers and the use of AI are also expected to increase. 

This is because marketing is subject to tremendous changes in accordance with the behavioral patterns of buyers in the new normal era of the current social environment. It is important to utilize innovative technologies through various digital transformations that maximize the use of technology to maximize the uniqueness of companies and products. In the new normal post-pandemic era, understanding individual needs becomes more important, so the utilization of AI is expected to be further maximized. 

The crisis brought about by COVID-19 can secure tremendous opportunities from a global market perspective by lowering dependence on 3rd party platforms and responding independently. For example, the Korean industrial landscape with a solid manufacturing base is the driving force for overseas market entry. Unfortunately, there seem to be many companies still relying on securing overseas distribution channels. After entering into large distribution channels, many companies were complaining about the limitations of collecting data on their buyers. 

Today, from the data-based performance marketing perspective, which increases sales through effective use of personalized business models, it can be a concern. A sophisticated channel strategy is required in the entangled existing distribution network, and it is time to consider the non-face-to-face situation above all else. In the past several columns, we have presented potential strategies and directions for the health, wellness, bio, and beauty industries in the North American market. Contact BDMT