Brands Skip Retailers, Go Direct to Consumers
An August 2010 poll by RetailWire asked if there was a greater upside for manufacturers who went the consumer-direct route versus those who only sold products through retailers. Sixty-eight percent of respondents said brands going the consumer-direct route had a much or somewhat bigger upside than those selling exclusively at retail.
Now comes a new study conducted by the Economist Intelligence Unit (EIU), sponsored by Oracle Consumer Goods, that found more manufacturers are exploring new ways to create direct relationships with consumers.
According to the research:
- The percentage of manufacturers selling directly to consumers will increase from 24 percent to 41 percent over the next year.
- Manufacturers are looking to improve interactions with consumers through social media. Activities planned include promotion (74 percent), consumer feedback (63 percent) and customer service (62 percent).
Procter & Gamble, perhaps the best example, has sold products directly to consumers through a variety of online and physical store environments in markets around the globe, including its own e-store, shopping walls using QR codes, platforms such as Alice.com, pop-up locations, Facebook and more.
"Manufacturers are increasingly exploring ways to integrate new channels such as mobile and social media into their marketing mix," said Cassandra Moren, senior director, consumer goods industry marketing, Oracle, in a press release. "It is critical in today’s highly-competitive global economy that consumer goods companies take advantage of every touch point with the consumer. As the EIU report shows, this now involves a combination of physical and digital environments."
- New Study Reveals Consumer Goods Companies Are Increasingly Going Direct to Consumers – Oracle/Marketwire
- Is it time for Brands to Go Direct to Consumers Online? – RetailWire
- Alice Takes Brands on Different Path – RetailWire
- P&G Opens eStore to the Public – RetailWire
- P&G Explores F-Commerce Opportunity – RetailWire
Discussion Questions: How do you think the nature of communications between manufacturers and consumers will change in the years ahead? How will increased consumer-direct activity change the dialogue between retailers and manufacturers?