The 3S’s: A new model is developed for D2C as it picks up pace in Southeast Asia.
As Direct-to-consumer initiatives are on the rise in Southeast Asia a new operation model is emerging. The 3S’s are defined as Sales Journey, Science, and Supply chain.
The Direct To Consumer (D2C) party is arriving on Southeast Asian shores. Brands are taking ownership of their products controlling the 3 S’s of their business: Sales Journey, Science & Supply Chain.
There have been many Direct-to-Consumers initiatives out there, the D2C marketing approach has been disrupting the markets for years by cutting out middlemen, building a strong foundation for a loyal client base. Great examples of the D2C business models that have been successfully implemented, can be seen by well-established companies. For instance, big players like Disney and Microsoft have launched their D2C ventures over the past few years.
In Southeast Asia, brands that follow the 3 S’s would be in an advantageous position to ride this new D2C wave.
The 3 S’s: Sales Journey, Science & Supply Chain
- The first step is to cut out the middlemen by selling their products directly to consumers. Building relationships directly with consumers helps brands control their image and truly understand consumers’ behavior throughout the whole journey. The point of this step is to have brands own their sales journey and take greater control of the perception of their products. To strengthen a brand’s identity as this is crucial for customer loyalty and retention.
- Companies have to focus on technological innovation through their research, product development, and supply chain process. Companies invest and come up with innovations to help differentiate themselves from others. Innovating in an environment that is not in the brands’ full control puts it at risk and makes the brands more susceptible to “leak” or giveaway strategic developments. Also, brands that control their platform are more agile with split testing ideas, the ability to measure product engagement amid communication and experience changes is extremely important.
- To decrease their cost companies must decrease their touchpoints/ handoff. Not only will this limit the processes their product has to go through, but the time that it takes to reach their consumers. With complete control over manufacturing operations, D2C firms are using predictive analysis to anticipate not only future client trends, but also quantities, regional interests, and production issues, among other things. This allows for a fast turnover of products, which is crucial when companies have to quickly adjust to changes in consumer behaviour and preferences.
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