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etaily Sees a Direct-2-Consumer Approach That Pays Off

A direct-to-consumer (D2C) approach presents a middle ground

Amidst the global pandemic, brands have either continued to grow or taken hits and struggled to recover. The difference-maker is a robust direct-to-consumer approach that enables them to thrive with e-commerce platforms.

Businesses that thrived during the pandemic, such as Amazon, were able to do so because its DNA allows it to scale massively in a short amount of time. Yet this doesn’t necessarily mean every brand must become a technology company with a strong platform, even with the world’s mass shift to e-commerce. A direct-to-consumer (D2C) approach presents a middle ground that is efficient without having to compete with platforms themselves.

The promises of D2C.

A D2C approach means instead of using wholesalers or retailers, brands sell directly to their end consumers. This can be done by setting up an online store or joining an e-commerce marketplace. There are numerous advantages coming from this approach.
One, D2C can create a distinctive brand identity with authentic and consistent communication, bringing brands closer to their customers. This brand authenticity is crucial for Gen Z and millennial consumers who want to buy from brands with similar values.
D2C brands can also collect consumer real-time data and better understand consumers’ interests. The insights gleaned can improve targeting and develop closer relationships, which also lead to higher customer retention and lower cost per customer acquisition. DTC brands can also leverage customer data to deliver best a better customer experience from website UX, product recommendations, and personalized offers.

Finally, the D2C model can bring on high average order values, strong gross margins, and repeat rates via subscriptions models thanks to brands being that much closer to their customers. The model can even drive lifetime value through customer loyalty, leading to greater brand confidence towards new customer acquisition.

Etaily use cases for the D2C model.

As an e-commerce enabler, Etaily is a way for brands to efficiently switch to a robust D2C model. In the past, multiple retailers have become successful use cases.
In the cases of fast fashion brand Terranova Philippines, retail department store Landmark, and pet food brand Goodest, Etaily was able to help all three transition to D2C by creating channels for them on leading e-commerce marketplaces like Lazada and Shopee. In the case of Terranova Philippines, Etaily also created its ZALORA storefront through API channel integration, which involved integrating the brand’s website functionalities directly into the online store to help streamline order fulfillment, shipping, and delivery processes.
Etaily was also able to create a distinct brand identity for all three brands by creating and managing content for them. For Landmark, Etaily was able to strengthen the brand’s social media presence and drive traffic to its e-commerce channels. Etaily also provided product photography services to diversify content for Terranova Philippines. All of these services were crucial for helping craft distinctive brand identities.
Using an e-commerce enabler was also key for helping the three brands better leverage data analytics. Etaily, for instance, helped manage the social media accounts of the three brands and helped craft insights from Facebook and Instagram analytics on what target audiences would want to see in the future.
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Results.

Within the first two months since the brand’s launch, Goodest ranked within the Top 10 brands of the pet care category of the leading e-commerce platforms in the Philippines. Landmark achieved PHP1 million GMV (gross merchandise value) in April 2020 before also becoming recognized as one of the top eight brands in the “Kitchen & Dining” category on Lazada just a month later. Terranova Philippines reported double in terms of business growth rate and monthly repurchase rate, 1.5 times higher in conversion rate and average order value, and decreased cart abandonment rate.

Switching to a D2C model with the help of an e-commerce enabler like Etaily clearly bought crucial benefits to Goodest, Terranova Philippines, and Landmark. As the retail landscape conitnues to evolve, the advantages they’ve been afforded will surely prove indispensable.