Megatrends D2C Strategy in Action Economist Research Success Stories Going Beyond the Sale CMO Guide D2C Readiness Quiz Data-Driven D2C Demo Showcase Next Steps
Megatrends
Megatrends
Strategy
D2C Strategy
in Action
Strategy
Economist
Research
Success
Success
Stories
Beyond
Going Beyond
the Sale
Guide
CMO
Guide
Readiness
D2C Readiness
Quiz
Driven
Data-Driven
D2C
Demo
Demo
Showcase
Steps
Next
Steps
Radical shifts in consumer preferences and market dynamics are forcing businesses to consider new selling channels, with direct to consumer (D2C) chief among them. Noting the success of Allbirds, Casper, Dollar Shave Club, Zappos, and other digital-native niche brands over the past decade, many consumer products companies still relying on traditional retail and marketplace channels to sell their products are rethinking their go-to-market strategies and launching D2C channels to reinvent their business models.
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D2C is more than just a buzzword. It is a sustainable growth model that empowers brands to stay relevant in rapidly evolving markets, as consumer preferences and buying trends continue to change and new shopping and buying channels continue to emerge.
Megatrends
Trends impacting business across multiple business-to-consumer industries
Changed
in-store
expectations
Touchless commerce,
curbside pickup, and reserved
shopping times have gained
popularity, in addition to
in-person and BOPIS.*
Increase
in brand
switching
Increased digital options
resulted in less brand
engagement and loss of
brand loyalty, with more
than 40% of customers
trying new vendors during
the pandemic.
New business
and selling
models
New business models such as
subscriptions and product-and-
service bundles – as well as new
selling models such as pop-up
portals, live virtual sales, and
socially influenced sales – are
constantly emerging.
Personalization
as table stakes
Customers are demanding
real-time, hyperpersonalized
experiences and promotions
as the default, in return for
sharing their activities and
preferences.
Supply chain
pressures
Changes and restrictions in
supply chains mean
businesses need a better
understanding of inventory
so customer expectations
can be met consistently.
New touch
points and
experiences
New touch points such as
wearables and virtual- and
augmented-reality devices
are appearing at a rapid pace
– vastly expanding the range
of potential sales channels
available to consumers.
1
Changed in-store expectations
Touchless commerce, curbside pickup, and reserved shopping times have gained popularity, in addition to in-person and BOPIS.*
2
Increase in brand switching
Increased digital options resulted in less brand engagement and loss of brand loyalty, with more than 40% of customers trying new vendors during the pandemic.
3
New business and selling models
New business models such as subscriptions and product-and-service bundles – as well as new selling models such as pop-up portals, live virtual sales, and socially influenced sales – are constantly emerging.
4
Personalization as table stakes
Customers are demanding real-time, hyperpersonalized experiences and promotions as the default, in return for sharing their activities and preferences.
5
Supply chain pressures
Changes and restrictions in supply chains mean businesses need a better understanding of inventory so customer expectations can be met consistently.
6
New touch points and experiences
New touch points and experiences New touch points such as wearables and virtual- and augmented-reality devices are appearing at a rapid pace – vastly expanding the range of potential sales channels available to consumers.
*BOPIS = Buy Online Pick Up in Store.
The Situation – According to Industry Insiders
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*Source: eMarketer, February 2021
The downward impact on revenue has been felt by 48% of consumer products companies, adding renewed urgency to the task of creating a comprehensive game plan. The largest group experiencing a revenue decrease (60%) is the large-company category.1

Product portfolios for consumer goods have taken a big hit during the pandemic, especially in the health and personal care segment, of which 90% reported moderate-to-high disruption.2
1., 2. "The Consumer Products Pulse Check Survey," SAP & Deloitte, 2020.


D2C e-commerce sales in the U.S. – including both digitally native and established brands – grew 45.5% last year, generating US$111.54 billion and making up 14% of total retail e-commerce sales, per our estimates. We expect relatively steady growth each year through 2023, with D2C e-commerce sales reaching US$174.98 billion.3
“Now is the time for D2Cs to . . . figure out how to capitalize on the growth they saw last year. . . . With shoppers feeling more comfortable returning to stores, these brands will likely face heightened competition, so the last thing they want is to lose relevancy with the customers they’ve just acquired.”
Cindy Liu, Director of Forecasting at Insider Intelligence, eMarketer4
3., 4. "Insider Intelligence: D2C Marketing Trends Roundup," eMarketer, 2021.
D2C Strategy in Action
Watch these short video spotlights to see two different perspectives on how a modern approach to e-commerce can drive new revenue streams by winning loyal customers through digital channels.
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angela
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Best Run Coffee – A virtual case for a real-life shift to digital
Meet Kayla: Coffee aficionado and
Best Run Coffee customer
See how Best Run Coffee is making a direct connection with consumers to uncover new possibilities for building long-term, value-driven relationships with customers such as Kayla.
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Best Run Coffee – A virtual case for a real-life shift to digital
Meet Angela: Chief Growth
Officer at Best Run Coffee
Learn how the right e-commerce solution optimizes Best Run Coffee’s business, end to end, by enabling profitable new selling channels at minimal cost and effort, making it an easy sell across the whole C-suite.
The Economist: Consumer behaviors are changing – Is your CPG business keeping up?

The Economist Intelligence Unit research

The Economist Intelligence Unit recently surveyed more than 4,000 consumers in the U.S., Germany, UK, Italy, and Spain, and it found that the landscape is quickly evolving for consumer brands. Learn why consumers of different generations increasingly prefer shopping online and how buying habits vary by age, region, and product category.
Read the report
Success Stories
True tales of best-run brands leading
through e-commerce

From food to footwear, see how agile innovation empowers these forward-thinking companies to reset, reinvent, and reinvigorate their business models to drive new growth and build lasting brand loyalty with customers.
Going Beyond the Sale
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Four steps for building an enterprise-wide strategy for better customer relationships
1
Importantly, an effective direct sales channel should offer a smooth and consistent experience across channels, especially mobile, as a growing percentage of sales are happening on these devices. This experience should meet brand storytelling and content marketing needs.
2
By gaining the ability to understand and act on each customer’s motivations, preferences, and behaviors at each step of the buying journey, you also gain the ability to provide a bespoke experience that keeps them more engaged and promotes long-term loyalty.
3
By making the pivot to D2C, brands that have previously operated with only indirect retail and wholesale selling channels can unlock the ability to build more valuable and lasting relationships with customers.
4
Most companies make the leap to a D2C model primarily in search of more direct revenue and higher profit margins, but that’s only the beginning of what this strategy has to offer businesses who get it right.

What can a well-executed D2C sales channel do for your consumer products brand?
CMO Guide
Read our CMO guide on attracting and growing your audience through a new direct digital selling channel.
question_answer
Is your business ready for D2C?

This is your opportunity to grow your audience and get closer to your customers by amazing them at every step of their journey with your brand. Complete our brief questionnaire to see if your brand is ready to be the next D2C star.
Find out now
Data-Driven D2C
Build more loyal and trusted relationships with customers through cloud-based customer identity and access management solutions from SAP.
When it comes to your customers – never underestimate the power of trust.
Learn how modern cloud-based customer data management technology can help you get closer to your customers, unlock the true power of personalization, and connect the customer journey across the enterprise – all while helping to minimize risk to your business.

Turn anonymous online visitors into loyal brand advocates.
Fuel highly relevant and convenient customer experiences with trusted first-party data and build rich, unified customer profiles synchronized across your Web and mobile channels to unlock the true value of personalization for building valuable lifelong customer relationships.

Read the brochure
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Key Benefits

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Deliver seamless customer onboarding experiences
Create customer-centric registration, login, and authentication flows with passwordless journeys and progressive profiling screens that are customizable for different business cases.
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Accelerate time to market with a global customer identity strategy
Manage customer profiles at a global scale with a solution that has one of the largest geographical footprints, while delivering secure experiences with an ID security shield tightly designed with our identity flow.
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Respect customers data privacy
Offer your customers control of their data during engagements through a customer identity solution designed with consent and preference management.
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Take a Deeper Dive
Look into the future of data-driven customer engagement in our on-demand podcast series, “Customer Data – The Key to Consumer Packaged Goods Success in the Digital-First Economy.”
  • Episode 1: The Data Deficit Dilemma
    ×
    Understand what lies ahead for today’s customer-acquisition stakeholders, with the death of third-party cookies looming.
    Listen now
  • Episode 2: The Skyrocketing Value of First-Party Data
    ×
    Learn how consumer brands can learn to effectively build the direct customer relationships formerly owned by advertisers and retailers.
    Listen now
  • Episode 3: A Glimpse into the Future of the CPG Industry
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    Hear about the strategies and technologies consumer packaged goods (CPG) brands are adopting to drive higher retention rates and increase customer lifetime value.
    Listen now
Demo Showcase

As is true with every good relationship, the one you establish with your customer should be based on trust. To deliver on your brand’s promise, every direct-channel consumer engagement must be appropriate, timely, and consistent – from first touch to fulfillment.

Check out our video showcase to walk through key moments in the customer journey step by step – from initial acquisition to a successful long-term relationship with your brand.

View the showcase
Next Steps

Go further by exploring the full spectrum of solutions for driving next-level strategies for consumer brands, retailers, and D2C organizations.
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