Before the intervention of D2C, manufacturers rarely interacted with the people who purchased their product. var AdButler = AdButler || {}; Other findings in the Forrester Research include: Over 50 percent of manufacturers have said that D2C sales helped to improve brand awareness and boosted leads and sales for their channel partners. According to a recent report by IRI, online sales will account for 10 percent of all CPG sales by 2022, which will be up by approximately 1.4 percent from 2015. Direct to Consumer (D2C) is a new yet already popular business strategy for many new, and some experienced small manufacturers. Legacy CPG brands, who usually hold a monopoly in a particular sector and have established connections with retailers, are not pressurized to innovate since they are literally sitting on a large profit pool. Plus, D2C can benefit both retailers and manufacturers, as D2C can help to improve brand awareness and boost leads and sales for retailers. However, it is often the case that ‘cheap and cheerful’ solutions at the other end of the scale amount to little more than enabling one spreadsheet to talk to another. But, and it is a big ‘but’, in all of this discussion of customers, marketing and fulfilment, there is rarely if ever any reference to how the D2C business model feeds back to and changes manufacturing and the upstream supply chain. Here are our top five findings: 1. You can find him feeding his beloved fish when he's back in Australia. With D2C, CPG firms maintain complete control over their brand from the moment a customer makes their initial engagement right up until the product has been purchased. AdButler.ads = AdButler.ads || []; Also, most retailers are too risk-averse. For legacy CPG brands, that is a lot of time and effort. D2C is not, of course, a single solution. A notable example is the men’s razor market. var abkw = window.abkw || ''; ‘Classic’ enterprise systems from the likes of SAP and Oracle are more suited to multinational companies than an SME with constraints on access to financial and human capital. var AdButler = AdButler || {}; But without an appropriate IT platform, which combines traditional manufacturing ERP with new e-commerce channels, the benefits … Crucially, D2C gives the manufacturer/brand owner direct access to vital data that otherwise may be yielded late, reluctantly, or not at all by wholesale and retail partners. GlobalData reports that 87 percent of consumers in the US check the ingredients before they purchase a food product, and 75 percent are concerned about consuming too much processed and unhealthy foods. 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