What is D2C in the Apparel Industry? Business Success Stories. (2021/07/12)
D2C has been getting a lot of attention in the apparel industry lately, but there are so many similar words in business, such as BtoC and EC, that it is hard to know what any of them mean.
D2C refers to a sales method that deals directly with consumers without the intermediary of a vendor. By dealing directly with consumers, it is easier to collect customer information and create brand fans.
According to an international market research firm, almost all consumers will purchase some D2C branded products in the next five years. Not knowing about the growing demand for D2C can be a big loss.
In addition, we will present successful D2C cases in the apparel industry. We will carefully explain what kind of business model is employed and what factors contribute to success. Please read on.
What is D2C? Features Explained!
D2C stands for Direct to Consumer, and refers to a sales method that deals directly with the consumer without the intermediary of a vendor.
In traditional business, the BtoB model is the business-to-business model, which is a form of business conducted by a company for a company. BtoB has the disadvantage of low consumer recognition and lack of attention from consumers.
Since D2C is characterized by direct communication with customers to sell products, it is easy to gain recognition and attention from consumers.
There are other advantages to selling directly to customers. We will introduce two of them in this issue.
Advantages of D2C (1) Easy to collect customer information
The first advantage is the ability to gather customer information, such as who is buying products and how often.
As a result, we are able to provide more tailored services to our clients.
Advantage of D2C (2) Easier to create brand fans
The second advantage is that it is easier to create brand fans by building close relationships with customers.
If they become fans of your brand, the relationship will continue even after they purchase your product, leading to higher overall sales.
Differences from BtoC and EC
BtoC, EC, and D2C each have different meanings that describe who the business is to, where the business is to be sold, and how the business is to be transacted.
- BtoC Business to Customer→Business done to individuals (to whom is the business done?)
- EC Electronic Commerce→Businesses selling online (where to sell)
- D2C Direct to Consumer→Businesses that deal directly with consumers (how they do business)
D2C is also BtoC because it is a business conducted by a company to a consumer. It is also EC in the sense that D2C does not involve a physical store to deal directly with customers.
D2C differs from BtoC and EC in that D2C completes everything from planning to sales in-house, whereas BtoC and EC sometimes use other companies' media or other companies' sales sites.
Successful D2C companies in the apparel industry
So far, we have explained what D2C is.
D2C is a sales method that deals directly with consumers without the intermediary of a vendor, and has the advantage of making it easier to collect customer information and create brand fans.
Here are three examples of successful D2C companies in the apparel industry.
If you are interested in D2C business in the apparel industry, please refer to this page.
COHINA cohina.net
COHINA is an apparel brand specializing in "clothes in sizes that can be worn beautifully by short women" for petite women.
Let us now introduce COHINA's track record and the reasons for its success.
COHINA Achievements
COHINA is one of the most popular brands in the apparel industry today, and has been featured in numerous media, including the popular women's magazines "anan" and "mer".
In addition, COHINA has achieved monthly sales of 50 million yen in just one and a half years since its establishment, making it a successful D2C business in the apparel industry.
Reasons for COHINA's success
One of the main reasons for COHINA's success is its 365-day-a-year live Instagram feed.
The Insta-live system is probably a creative way to convey sizing information by making it easier for customers to get an idea of what they will wear without having to hold the actual item in their hands, and by allowing them to easily ask questions and get an immediate response on the spot.
COHINA's official Instagram account has approximately 200,000 followers, making it an example of a D2C brand that has succeeded through the use of Instagram.
Here is COHINA's Instagram account.
COHINA-Brands for petite women under 155cm- ＠cohina.official
Please check it out.
17kg 17kg.shop
17kg is a petit-price Korean women's fashion shopping site for women in their teens and 20s.
Now, let's take a look at the 17 kg results and the reasons for our success.
17kg results
17kg is a Korean fashion brand originating from Instagram. The number of followers on 17kg's Insta account exceeds 500,000, indicating that the brand has a huge following among young women.
17kg also opened a physical store at Laforet Harajuku in April 2019, becoming a well-known brand in both name and reality.
Reasons for the 17 kg success
One possible reason for the success of 17kg could be its Instagram presence.
17kg was originally created as an Insta-based brand. The founders of 17kg went through a lot of trial and error, setting up about 10 Insta accounts for about 10 stores before arriving at the line of selling Korean petit-price women's fashion.
And as a result of continued outreach on Instagram, influencers gradually spread the word about 17kg's appeal.
17kg is another example of a successful case study that was made possible by the outreach activities on Instagram.
Here is the 17kg Instagram account.
Please check it out.
ALL YOURS allyours.jp
ALL YOURS is an apparel brand that focuses not on fashion or trends, but on functionality as a tool that anyone can wear comfortably and for a long period of time.
Let's take a look at ALL YOURS' achievements and reasons for success.
ALL YOURS Achievements
ALL YOURS has received support from a total of 4,000 people for approximately 58 million yen in 24 consecutive months of crowdfunding since May 2018.
ALL YOURS has also been nominated for one of the most prestigious awards in the Japanese fashion industry, the Mainichi Fashion Grand Prix, and is an apparel brand that is not only supported by users but also attracting attention from the fashion industry.
Why ALL YOURS is successful
A possible reason for ALL YOURS' success is that it focused on making fans of the brand.
ALL YOURS views the relationship between brand and customer as a "one-to-one" relationship, creating a community in which the customer is an "accomplice.
According to the ALL YOURS representative, a community that calls its customers "accomplices" is one in which clothes are made with the input of customers and in which customers themselves are given the right to participate in what they like.
ALL YOURS is a successful example of putting the customer first and growing a fan base for a brand.
summary
In this article, we have explained what D2C is, its characteristics, how it differs from BtoC and EC, and D2C success stories in the apparel industry.
D2C, which is now attracting attention in the apparel industry, is a form of business that deals directly with customers without intermediaries.
Please use this article to learn more about D2C business in the apparel industry.