In the fast-paced digital retail world, effectively engaging potential customers is crucial for success. A recent study by Jan Becker and Christian Barrot, professors and marketing specialists at KLU, sheds light on consumer preferences in online shopping. The research titled “Understanding Customers’ Preferences: D2C vs. Multi-Brand Operations” reveals a growing preference among consumers for direct-to-consumer (D2C) online shops over traditional multi-brand retailers.
The study highlights that consumers are increasingly attracted to D2C platforms due to their personalised shopping experiences, comprehensive product information, and extensive product selections. These preferences often manifest early in the shopping journey, influencing consumer decisions before specific products are considered.
Personalisation is a key strategy for retailers to thrive in the evolving digital retail landscape. Retailers can significantly enhance customer satisfaction and foster loyalty by tailoring the online shopping experience to individual preferences and behaviours. Moreover, focusing on product categories that offer a diverse mix and depth of products can further attract and retain customers on D2C platforms. Concurrently, targeting marketing strategies for exclusive products helps differentiate offerings and appeal to discerning consumers seeking unique experiences.
Professor Jan Becker underscores the significant potential of direct sales strategies in today’s digital marketplace. He emphasises that companies can maintain a competitive edge by aligning with consumer preferences and leveraging their product category strengths. This research provides actionable insights for branded retailers looking to optimise their omnichannel strategies and enhance their D2C operations, ensuring relevance and success in an increasingly competitive online retail environment.
More information: Eda Kalayci et al, Understanding customers’ choice for digital D2C versus multi-brand operations, Journal of Retailing. DOI: 10.1016/j.jretai.2024.02.001
Journal information: Journal of Retailing Provided by Kühne Logistics University