How COVID Created A Perfect Storm For D2C Brands

How COVID Created A Perfect Storm For D2C Brands
B&T Magazine
By B&T Magazine



New research from Ogilvy has found that direct-to-consumer (D2C) brands have a greater ability to adapt to shifting customer expectations amid the COVID-19 pandemic.

The study, which maps the trend of digital commerce in South-East Asia, found that internet penetration, digital payments and consumer trust all increased in 2020, creating a perfect opportunity for brands to connect with customers directly.

“Not many thought of buying toilet paper online before Covid,” said Ogilvy’s Delivery and Operations Center Global Vice President for Verticurl Waheed Bidiwale.

“Brands that are thinking ‘I’m in a commodity business, or I am in the impulse purchase category or nobody buys a car online so I don’t need digital commerce,’ need to relook at their strategies.”

Ogilvy’s Vice President of Presales Consulting-Technology Tim Till also suggested influencer marketing is playing a role.

“Referral-based commerce with influencers may see an increase as the sophistication in payments to those influencers matures,” Till said.

“A growing consumer base, including unbanked individuals will increasingly be able to buy online as individuals and businesses become able to receive payment and pay through new and developing methods such as crypto currency, buy-now-pay-later, e-wallets.”

Additionally, the report suggests that eCommerce marketplaces – such as The Iconic or Catch in Australia -may not be a long-term solution, with costs around advertising and generating web traffic adding up over time.

These costs will inevitably be passed on to the consumer.

With D2C, the ‘middleman’ is essentially removed, and these costs are avoided. This could ultimately result in greater savings for shoppers.

 




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