Are You Doing Direct-to-Consumer All Wrong? Here’s How to Fix It

In the past, most multinationals invested in their direct-to-consumer (DTC) business hoping to unlock a scalable, high-margin sales channel but instead found failure and frustration. Now, beverage companies are changing how they approach their online DTC business.

Despite their struggles in the past, brands have to rethink and reinvest in the DTC channel. “Instead of trying to build a large, margin-accretive DTC business, large food and beverage companies should use the channel to build a robust ecosystem for gathering consumer insights and testing new ideas that can be used to improve efficiency and spur innovation across their organization,” according to Bourcard Nesin, Analyst – Beverages.

“With the potential to revolutionize the brand development pipeline, improve customer segmentation, and drive the efficiency and efficacy of marketing campaigns, a DTC program optimized for insights offers more benefits and far less risk of a billion-dollar mistake than the past approach to the channel as a scalable sales channel.”