Direct to consumer
DTC for grocery brands is an emerging global sales channel for manufacturer’s.
But don’t get too excited; because here in Australia there are limited numbers of the major manufacturer’s selling direct!
And for good reason, because, they are geared to supplying a handful of key retailer’s in large volumes; and don’t yet have the infrastructure or logistics to cost effectively handle smaller orders.
More importantly, they have formed lasting relationships with the major supermarket businesses, and therefor would be reluctant to jeopardise this crucial and beneficial relationship.
15% of grocery purchases
Yet in the digital space things evolve rapidly, COVID has accelerated consumers online purchasing of brands direct from manufactures from 2% to an amazing 15% (US data) of all consumer goods purchases.
Notwithstanding consumers in Australia have taken to purchasing groceries online with exponential year on year growth via Woolworths Online, Coles Online, IGA Shop Online, Amazon, Ebay and Costco.
Consumers in Australia are now accustomed to buying brands online via retailers. But why would you want to order a single product from a manufacture when you can do your entire shopping from a retailer?
Reasons to buy direct
- The product is heavy or awkward to purchase from a store i.e. cartons or slabs of beverages. Having a bulk product delivered to your door saves handling, and bad backs.
- Your favourite product is no longer stocked by the retailer. More and more the range of brands are being diminished from the supermarket shelves and replaced with store branded product. Always have what you want in the pantry by ordering direct in bulk.
- You regularly use a product in large volumes. Your family may consume quantities of cereals, drinks, snacks etc which may be convenient to order direct.
- Minimising the time you spend in a store environment is sensible given the global COVID crisis. Become a smarter shopper and avoid crowded spaces by purchasing direct your home.
