Tackling DNVBs for emerging brands and legacy retailers
The recent years have seen the emergence of DNVBs or micro-brands; brands that focus on providing a niche product for a niche customer, which is changing the consumer brand landscape completely. These direct-to-consumer micro-brands or DNVBs, also known as v-commerce brands, are spearheading new approaches to retail. These brands have a distinct business model; combining the growth of an e-commerce company with the profit margins of a brand.
These brands control the entire experience - from sourcing and manufacturing to delivering product experiences online (website or social media platforms), thus enabling them to iterate product design and demand and connect with their customers in an authentic manner via micro-targeting.
So what can emerging brands and legacy retailers learn from the DNVBs that are disrupting and taking over the e-commerce environment?
Adopt a data-driven model
Standardized messaging is a big no for DNVB customers. High performing DNVBs invest heavily in collecting and measuring data to improve their communication with their customers. They leverage first, second and third party demographic, behavioral and psychographic to design bespoke digital advertising. This further enables them to understand the messaging that would resonate with the different segments in their target demographic.
Every touch point with a customer is devised to convince and convert. Legacy retailers and emerging brands must leverage data to intersect their demographic and strategically target potential customers.
Design strong product experiences
DNVBs offer customers a buying experience which is as memorable as the product. DNVBs create product experiences that are visual, descriptive and transparent (the product is represented in an image enabling the customer to visualize the product as part of their daily life). Furthermore, they also leverage UGC content and customer reviews to further represent the product ensuring that the customer is well briefed about the product before making a purchase. Emerging brands and legacy retailers must further focus on creating strong product experiences to drive revenue.
For example: For a home decor brand, besides how the product looks like, it is important for the brand to provide details about the materials used, sourcing of the materials as well as the durability of the product. The product page must mention all these details along with the size, height, frame of the product. Pages that include lookbooks or UGC content further helps the customer to make a better choice.
Build tech with a human touch
DNVBs collect data on every transaction and interaction with customers and leverage this information to better understand their customers and how they behave online. The goal is driven to be relevant, highly personalized, efficient and convenient for the customers.
Traditional or emerging brands, while interacting with their customers, must ensure that their message is personalized. For ex: If the customer in the past has purchased organic, whole wheat pasta, the messaging they could receive could include organic tomatoes or organic arrabbiata sauce they could use for their pasta.
Take the brand experience offline
Digitally native brands understand the importance of brick and mortar and do not restrict themselves to being digital-only. DNVBs often expand to shops through partnerships with third-party retailers, pop-up stores or by creating their own physical locations. Moreover, these locations are heavily marketed by influencers, with strategic content as well as promotional offers. They ultimately expand from a digital-only space but without sacrificing their brand or customer experience.
Most e-commerce companies are heavily focused on distributing other brands' goods and competing with e-commerce giants like Amazon, Walmart, and Alibaba while DNVBs are paving the way for a new retail experience with technology, social sharing and being perceptive to the shifts in consumer buying behavior.
Consumers are increasingly demanding informative and convenient product experiences across every sales channel and with more DNVBs coming into the market, expanding their presence beyond digital channels to brick and mortar stores, it is imperative for traditional brands to take inspiration from the DNVBs and adapt their business models to the changing consumer trends. Brands that can not only meet these expectations but also deliver on it will be the most successful in the digital space.