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Coronavirus has brought the direct-to-consumer (DTC) business model into sharp focus for manufacturers. As storefronts shut down, and state and local lockdowns kept shoppers in their homes, many swapped instore purchases for online shopping. But how can distributors remain relevant in this ever-lean landscape? In reaction to current market conditions, manufacturers are building fully integrated distribution channels which shrink the supply chain. This simplified DTC model is set up by using data to expose and target high-value segments and the rewards are significant. 100% of gross margin can be retained, market reach expanded, and capital expenditure reduced. Disintermediation is challenging for distributors, but it is possible to add value and even thrive by making key operational and strategic changes, and by capitalizing on strengths such as deep product knowledge, service capabilities, and technical expertise. Manufacturers need to outlay significant capital to possess these advantages. The hurdles are surmountable. By moving quickly, it is possible to increase market share and increase tight margins, create deeper customer relationships, and retain and seek new competitive advantages by adopting smart technology solutions. This guide will help you to map out a bold strategy, fast. It covers:
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