Direct to Consumer How Brands Eliminate Retail and Thus Open

If a few years ago – not so many, moreover – the key to reaching the consumer with a brand or a product was to position oneself well with it wherever consumers shopped, things are no longer so unique these days. In other words, a few years ago, when a product or brand was launched, it was necessary to find out in which spaces consumers bought those products. Then you had to get those stores, physical or electronic, to also sell the brand you were trying to launch. Successor failure depended on knowing how to get into the distribution channel. That was the gold standard of sales, although things are no longer like that. More and more brands are testing the direct-to-consumer model. It is what in English is known as direct-to-consumer (DTC). The brand in question does not go through a third party to sell the product.

Intermediaries Have Disappeared Between the Brand and Its Buyers

One of the companies that could promote this type of model in Spain is Xiaomi. The chinese mobile manufacturer – which has become one of the most fashionable in recent years and whose. Brand is beginning to be more than recognized – could launch a more direct model of connecting with the consumer. As explained in digital economy, the fact that the company begins to have points Finland Phone number of friction. With distributors is what would lead them to bet on it. The large chain stores believe that the income from the sale of xiaomi mobiles (20 euros for a 200 terminal) is not enough to cover. The expenses that they entail and they have begun to press to increase their margins.In 2015 they were already 9.4% and since then it is more than likely that the percentage has grown because more and more brands are betting on it.

An Emerging Model Although the Apparent Reason Why Xiaomi]

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Although the apparent reason why xiaomi would be making this decision and migrating from. One system to another would be absolutely pragmatic. The truth is that the issue is not so unexpected. The direct product sales model, in which the brand connects directly with the consumer and does not go through. An intermediary in the distribution channel, is becoming more and more common. At the beginning of this year, analysts already pointed out that it was in a moment of boom and at the end of the year this trend seems clearer. The data coming from the united states makes it quite clear. In 1992. These types of brands were less than 4% of all sales.

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