Why is this the perfect time to build a direct to consumer business? The Pandemic has changed the world. From the way we socialize to how we do business. Many fashion companies have suffered through these times. But some have seen the opportunities in the challenge and have managed to grow their businesses.
When the quarantine started and the stores closed I suggested to my client that he become aggressive in promoting his product online. He followed my advice and in 5 months he has had an 800% increase. That is amazing!
No matter the problem there is always a way to take advantage of it to do things better. That is why I believe that now is the perfect time to build a direct to consumer business as a solution to this crises.
There are many advantages to selling direct. The following are what I see.
- You create your brand experience. When you sell your product to a store who then sells your product to a customer, your product is part of the stores branding not your own. Selling direct to consumer gives you the control to create the messaging you want to create. You also control the look and feel of your website or store plus the labeling packaging and customer service. I have a client who is so good at customer service that his consumer comes back again and again for more styles.
- Your margins are much better. Selling directly to the end consumer cuts out the middleman. By taking out that profit need, you then can keep a portion for yourself.
- You can sell 24/7. When you have an online business you can sell your product 365 days a year and 24 hours a day. Your customers can shop when they want and what is better than waking up in the morning to see that sales happened overnight.
- It’s less expensive than selling to stores. There are lots of expenses that you incur when you are selling to stores. Some of the costs are, showrooms, trade shows, travel, sales salaries, and sales commissions.
- There is an ease to entry. There is a lot of set up to sell to stores. You need an infrastructure to sell to retailers. Have a place to show your line as well as salespeople to sell. You also have to have someone who stays on top of charge backs from stores and ensures that people pay on time. With an online business you need a website and a marketing plan as well as customer service. Much easier!
- You have more control over your business. With the pandemic we have learned that brick and mortar stores have had to cancel lots of orders. In fact there have been a lot of bankruptcies and closures. If you were reliant on these stores you have experienced cancellations as well as no new orders going forward. If you have a thriving on-line business you wouldn’t have suffered the fate of brick and mortar stores. These stores were already having serious trouble as the way we buy fashion has changed quite a bit. So on line business is where the growth will be.