Braun Büffel – award-winning retail case with the D2C approach
The medium-sized leather goods manufacturer Braun Büffel has done its digital homework and successfully initiated the transformation. The digital offensive was so successful that the case won 1st place in the Best Retail Case Award in September 2021.
The main success factor was the overall cultural change in the company. Through the customer journey analysis, Braun Büffel got to know its target group better and could optimally align online sales to it. At the same time, the employees were brought on board and participated in the restructuring from the very beginning. The success is very clear:
The share of D2C e-commerce sales rose to 30% within 2 years.
Challenges of Successful D2C Ecommerce Strategy
Companies have more control over the value chain in the D2C, which can be both an advantage and a disadvantage.
If a company lacks marketing, sales, or customer service competencies, it may be better to outsource these steps or use a platform to support their efforts. However, acquiring these competencies or outsourcing processes will likely cost money. If a company masters distribution and marketing, it can be a major advantage, as they know their products best.
Another challenge of a direct-to-customer approach is that retail is a strong competitor.
This is because retail companies know best about their target customers’ local characteristics and needs. In addition, these companies already have experiential knowledge and data about which products are profitable and sell well.
This knowledge can be an advantage over companies that are just starting to choose D2C as their only strategic plan. However, by entering this market and utilizing electronic commerce statistics and data, brands can gain valuable insights into their target audience and optimize their offerings accordingly.
Probably the biggest challenge is that when you start selling directly to customers without intermediaries, you are confronted with a completely new area.
We are talking about order management, returns, and the associated management.
Technically and, above all, logistically, this is a huge challenge because, as a manufacturer or brand without previous direct sales, you have to set up the returns process for the first time. This is where the differences between D2C e-commerce and traditional retail become apparent.
While traditional retailers have established processes for handling returns, D2C brands need to build these capabilities from scratch.
Despite these challenges, this model offers significant opportunities for brands looking to drive growth and connect with customers directly.
Top brands in the D2C space have demonstrated the potential for success, with many achieving significant electronic commerce growth and building loyal customer bases.
As more brands enter the D2C market and invest in their electronic commerce capabilities, the future of retail will likely see a continued shift towards direct-to-consumer sales and novel commerce models.
More and Happier Customers with D2C Commerce in Electronic World
Improved customer contact through a direct-to-consumer strategy leads to higher customer satisfaction, repeat purchases, and loyal customers. This reduces the effort required to acquire new customers and generates trust through good reviews and word of mouth.
Brands can sell without an intermediate, enhance their customer interactions and achieve sustainable growth by utilizing digital commerce platforms and the D2C master plan.
Offering optimal returns management, including uncomplicated and fast returns processing and friendly customer service, is crucial for increasing customer satisfaction in a D2C ecommerce model.
D2C brands can differentiate themselves from traditional retailers by providing exceptional customer service and a seamless returns process, creating a more personalized customer experience.
Through direct contact with the target customer via marketplaces or their own brand webshop, companies also have the opportunity to respond to feedback and requests for improvement. As a result, customers’ wishes and needs can be better understood and met. D2C, therefore, helps companies to focus more on the target customer.
“The systematic analysis of the reviews brought product management and marketing closer to the customers”
— Marcus Nessler, Head of Customer Experience, Samsung
With the help of review management, the feedback gained can be efficiently managed and evaluated.
A decisive success factor here is the topic of customer experience management. Those who actively accompany their customers during the customer journey can influence buying behaviour and build brand loyalty. After a purchase has been made, analyzing customer reviews is increasingly important.
The founder of the direct-to-consumer brand Wiesemann 1893, Manuel Siskowski told us in an interview that, review data is much more meaningful and of higher quality than market research data. He, therefore, advises all companies to monitor customer reviews actively and, in the event of a negative review, to contact the customer directly.
Focusing on customers’ needs enables companies to grow sustainably and in the long term, thus successfully competing with rival companies. Brands can maintain an advantage over competitors by venturing into the D2C sector and use customer feedback to enhance their products over time.
Through direct consumer sales via their ecommerce website or marketplace, companies can obtain important information and understand consumer behaviour and preferences.
This data can be used to optimize marketing campaigns, product offerings, and the overall customer experience. As more brands enter the D2C space and invest in their electronic commerce capabilities, the future of retail will likely see a continued shift towards direct-to-consumer sales and novel commerce models.
