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Brand manufacturers must think about their technology strategy while attempting to balance the desire to go direct-to-consumer (D2C) and managing continued market uncertainty. But how can this be accomplished successfully?
Jordan Jewell, research manager for digital commerce and enterprise applications at International Data Corporation (IDC), answers this question in a recent D2C Strategy Playbook session.
Jewell outlines considerations for brand manufacturers looking to optimize their technology stack and how they should determine the technology that best fits their needs out of the many options available to them.
Interest in D2C has exploded in recent months. Besides pandemic-related overall ecommerce acceleration, Jewell highlighted that a brand’s website is often the “gold standard” in product information.
Content, product pictures, and information associated with each SKU tend to be the most up-to-date on a brand’s website instead of third-party (3P) sellers. There are numerous aspects that brand manufacturers need to consider before investing in D2C. However, Jewell noted that too often, brands don’t take the time to determine what their goals are with D2C.
They may also run into conflict with existing channel partners or internal teams who don’t understand the value in D2C and are unfamiliar with what changes need to happen for it to be effective.
Then, of course, there is the technological complexity. According to Jewell, there are over 100 vendors offering commerce solutions. Among this sea of competing vendors, how can brand manufacturers ensure they choose the right one for their business and their goals?
To that end, Jewell has segmented the commerce technology market into four categories: agility-, functionality-, content-, and architecture-led. Each category boasts a set of vendors with particular strengths and weaknesses that need to be considered by brand manufacturers as they determine the best fit for them.
By effectively segmenting vendors into categories that decipher strengths and weaknesses, brand manufacturers can save a lot of time in energy in their technology selection stages of the process while also having the confidence that they are ultimately making the right choice. The result is a smart investment to kick off D2C initiatives, which will help scale efforts and prove D2C’s effectiveness.
Watch the full session, "How to Shift Your Marketing Strategies and Teams Right Now," and sign up for upcoming Digital Shelf Virtual Summit sessions.
Watch the full session, "D2C Technology Strategy Playbook," and stay tuned for upcoming sessions.
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