Why industrial companies should consider D2C—and how Gung can help

As manufacturers continue to explore new avenues for growth, the direct-to-consumer (D2C) sales strategy stands out as a powerful approach to stay connected with customers in an ever-evolving business landscape. By embracing this model, manufacturers can gain greater control over their brand, increase profitability, and rapidly adapt to market trends. Furthermore, through direct customer engagement, manufacturers can foster loyalty and leverage customer insights to create innovative products that truly resonate with their target audience.

Gung has developed functionality that will support its customers who want to take advantage of moving to a D2C model—without sacrificing what they have already built for their B2B channels. This article explains the benefits of a D2C sales approach, as well as how the Gung platform can enable it.

What are the benefits of moving to D2C for industrial companies?

Greater Control over the Customer Experience: When manufacturers sell through traditional retail channels, they often relinquish control over how their products are presented and perceived by consumers. By adopting a D2C sales strategy, manufacturers can take charge of the entire customer experience. From branding and marketing to product information and post-sales support, every touchpoint can be customized to align with the manufacturer's vision.

Enhanced Customer Insights: Direct customer interaction provides invaluable insights that can fuel product innovation and drive sales growth. By owning the entire sales process, manufacturers can gather detailed data on customer preferences, purchasing patterns, and feedback. This information can help manufacturers gain a deeper understanding of their target audience, identify emerging trends, and adapt their product offerings accordingly.

Increased Profit Margins: By eliminating intermediaries such as distributors and retailers, manufacturers can significantly improve their profit margins. D2C sales enable manufacturers to capture the full retail price and avoid profit-sharing with middlemen. Additionally, cost savings can be achieved by streamlining the supply chain, reducing inventory levels, and optimizing logistics.

Rapid Adaptability and Flexibility: The D2C sales model empowers manufacturers to swiftly adapt to changing market dynamics. With direct access to customers, manufacturers can react in real-time to emerging trends and consumer demands. This agility allows for faster product launches, customization options, and the ability to address customer needs promptly.

Brand Building and Customer Relationships: Meaningful and effective D2C sales interactions enable manufacturers to create a direct and emotional connection with customers. Strong customer relationships not only result in repeat purchases, but also encourage customers to become brand advocates, amplifying the manufacturer's reach and influence.

Testbed for Innovation: D2C sales provide an ideal environment for manufacturers to experiment with new product concepts and innovations. By directly engaging with customers, manufacturers can obtain immediate feedback and gauge market response to new ideas. This direct interaction eliminates the guesswork associated with traditional retail channels and minimizes the risk of launching products that may not resonate with consumers.

How do Gung’s B2C offering work?

Gung’s B2C solution is based on the Shopify webshop platform where, together with our clients, we configure the entire B2C process—from product data and order information to inventory balances and design. Shopify is then integrated with Gung PIM, which means that the management of product data and images is still collected in one place and reaches B2B, B2S, and B2C at the same time.

Below are just a few examples of B2C stores we have populated using our Shopify + Gung PIM integration:

Although we began with Shopify, it is not the only web platform with which Gung integrates. We also develop and support integrations with Jetshop, Magento, PrestaShop, and WooCommerce, to name a few. Regardless of which B2C webshop platform you choose, Gung’s PIM is an excellent data source to use as a basis for the integration.

We do not think it should be difficult for our customers to open up to B2C. With our Gung PIM solution, the integration becomes easy. Product data and product images are pulled directly from your ERP system, and enriched by the data in Gung’s PIM. Updates can be made in one place—your Gung PIM—and they can be immediately published everywhere you choose. The integration also pulls stock balances into the selected B2C solution. As a result, your B2C sales channels will always showcase up-to-date product information in a branded, easy to use interface—complete with integrated order processes and payment options that communicate right back to your ERP system.