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Tag: Direct to Consumer

Streaks In An Offline Business

I ended up damaging my finger today so typing is bit of a struggle.

I came across this tweet by Moiz Ali, founder of Native. Moiz is known for building a $100M D2C brand that he sold to P&G under 3 years. His company only employed 7 people at the time of acquisition. On his twitter, he likes to give away ideas that he thinks can grow into multi million dollar businesses. Here’s one of his ideas using one of my favorite game-mechanics.

I don’t know much about gym economics, so I don’t know how well this could work. But I do know that gym memberships are sold way beyond the capacity because most members have a poor record of showing up.

If these economics don’t work, I’m sure that a different variant of this same model will definitely work e.g $45/month fee and $1/day waiver so the gym makes $15 even if a member shows up daily. The idea is in the offering and not the pricing.

You’re rewarding your members for showing up daily which encourages them to show up. The statement that you’re making is that your gym really cares about their health as you’re willing to charge less as long the customers are healthier. The attendance rate would still only slightly improve as most members will continue to have attendance rates as before.

In addition, you’re taking 1 year commitment so you’re still likely to make money of your most regular customers.

I think it’s a great idea. What do you guys think?

Pepsi Is Now a D2C Brand.. But Why Did It Embrace D2C

As online shopping goes through forced-adoption and becomes the new normal, Pepsi has embraced the direct-to-consumer trend and launched PantryShop & Snacks.com (will not open from Pakistan’s IP).

Some say that it’s more cost effective to be D2c by eliminating all middlemen. Which I think could be true in some cases if your brand has strong affinity but not necessarily true if you don’t have enough repeat purchases and always acquiring customers through advertising on Facebook, Google etc (the new middleman).

It makes sense for smaller, newer brands to embrace D2C as that probably is the most cost-effective way for them to launch the brand. But Pepsi has the supply network streamlined better than most companies in the world and probably not going D2C for cost-reduction. So why did Pepsi embrace the D2C?

I think, they are going D2C for other benefits of the model. Such as building relationships and acquiring data.

When you’re winning over your competition at a retail store, you may be winning the sale, but are you winning over your customers? Do you have control over your customers’ experience?

Do you have your customers’ data? Do you have their address, phone number, or other demographic data?

Do you really know your customer, or are you making (educated) assumptions about them?

How do you test or launch new products?

These are the reasons why I think Pepsi is embracing D2C.