In recent years, as consumer brands accelerate their digital transformation, the DTC (Direct to Customer) model has gradually emerged and has become the goal pursued by many apparel companies. This article will explain how Chinese apparel companies can layout and operate the DTC model and achieve a new round of business growth under the new situation of the epidemic.
1. Differences between the DTC model and the traditional sales model
The DTC model is significantly different from the traditional sales model in all aspects. For the apparel industry, the DTC model emphasizes the target consumer as the core, directly reaching customers through online and offline channels, and providing a unified, cross-channel experience and in-depth interaction. Improve consumer operation capabilities through data precipitation, and reversely drive changes in production and supply chains.
2. Challenges and opportunities
Under the DTC model, apparel companies face challenges such as regional expansion, market sinking, and channel integration. Especially with the rise of private domain operations and e-commerce, apparel companies need to cope with the challenges of increasingly fragmented customer connections and how to retain old customers. However, this also provides companies with opportunities to expand growth methods and profit models for emerging channels.
3. Implementation strategy
For DTC transformation, it is recommended that apparel companies adopt a “two-step” strategy: the first step is to cultivate from “points” and “points”, deepen cooperation with e-commerce platforms, and find suitable methods for brand growth; the second step is to plan different DTC channel positioning and linkage through “points” and “surfaces”, channel positioning and linkage layout.
4. Practical cases
Taking Tmall, Douyin e-commerce and Tencent as examples, the sales activities and DTC channel operations of apparel companies on different e-commerce platforms are introduced. Through private domain operations and brand strength enhancement, sales growth and customer stickiness have been improved.
5. Future prospects
Looking forward, Bain will assist traditional apparel companies in creating a DTC system around five modules. It is recommended that corporate leaders carry out reforms centered on the overall operating model, clearly define the DTC strategic vision and development path, improve the operational capabilities of online e-commerce platforms and private domain systems, and flexibly organize business models to jointly authorize changes.
The DTC model provides apparel companies with opportunities to withstand challenges and achieve a new round of growth. By deeply studying consumer needs, optimizing channel layout and strengthening operational capabilities, clothing companies can achieve sustainable development under the new situation.