Consumers have never been so well connected. They are embracing digital media and are increasingly confident about interacting online:

  • More than half of UK consumers currently own a smartphone and adoption of technology is growing at an exponential rate1.
  • Digitally-influenced shoppers spend more per transaction than 'store only' shoppers and are worth 44% of all (non-food) sales2.
  • Digitally-influenced consumers are more loyal with 46% willing to share personal data with retailers in exchange for special offers2.
  • 14% of consumers trust messages provided by the brand, whereas 90% trust brand messages from friends and peers3.

Consumer products companies are responding to this shift in consumer behaviour and are increasingly interacting directly with their consumers. They are building brand engagement through communication channels such as content-rich media, online communities and social networking sites, as well as achieving revenue growth through direct sales channels such as proprietary websites, flagship stores, marketplace websites and online partnerships.

For example, Diageo has just launched a new online platform to sell its portfolio of premium spirits as well as opening a flagship store - the Johnnie Walker House – in Beijing for its Scottish whisky brand. P&G has experimented with digital walls and has the P&G e-store, an online transactional site for all products across categories. Apple and Nespresso have highly designed and interactive flagship stores, creating unique spaces to engage directly with their consumers. Various consumer products businesses such as L'Oreal trial and sell products through social networking sites. This is a trend that will only grow.

Interacting directly with consumers can be complementary to existing trade relationships, selling personalised or innovative products or a broader product range than would normally fit within established channels or within a retailer's product or price hierarchy.

Going direct to consumer can provide consumer products businesses with significant benefits. Communicating directly with consumers in a two-way dialogue can promote consumer loyalty, provide insight on consumer trends as well as providing instant product feedback, all of which drive analytical product portfolio and innovation decisions. Selling directly to consumers either through a physical retail presence such as flagship stores gives companies greater control over margins, consistent brand positioning and increased access to valuable consumer data.

Read more about Deloitte's direct-to-consumer proposition, 'Connecting with today's consumer: building brand value'.

Footnotes

1. The dawn of mobile influence, Deloitte Digital, September 2012

2. The Connected Consumer, Deloitte, 2012

3 Global Trust in Advertising and Brand Messages, Nielsen Trust Survey, The Nielson Company, April 2012

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