A successful online advertising company conducted a market research on “Digital D2C”. “D2C” is an abbreviation for “Direct to Consumer” and refers to a model in which products are sold directly to consumers using in-house channels such as e-commerce.
Consumers have shifted their focus from the “mass” world, represented by television, to the “digital” realm, where they use smartphones and other social networking services. This D2C market in the digital realm, or the “digital D2C” market, is a market that is expected to grow.
This survey showed that the digital D2C market is growing and is expected to continue growing in the future.
Reference source: Digital D2C market size predicted to reach 3 trillion yen in 2025 (Talesuru Net Advertising Co., Ltd.)
Consumers have shifted their focus from “mass” to “digital”
With the spread of smartphones, the Internet and SNS have become more familiar and indispensable to consumers’ lives than ever before. Symbolizing this is the fact that internet advertising expenditures overtook TV advertising expenditures in 2019.
Along with the shift from a focus on “mass” to a focus on “digital,” there has been a major change in consumer consumption behavior. It is said that users who previously felt reluctant to purchase products on e-commerce sites are gradually becoming less reluctant to purchase products on e-commerce sites. There are users who purchase products online without visiting a store, and users who see a product in a store and purposely purchase it through e-commerce instead of going to that store.
In response to these changes in consumers, digital D2C is attracting attention. Using social media, it is possible to communicate directly with consumers without intermediaries. This type of digital communication has the advantage of being able to communicate the company’s brand’s worldview and new values to consumers more clearly than ever before.
Being able to have two-way communication with consumers also allows companies to improve their products and services and build stronger relationships of trust. It will also be possible to foster brand loyalty among consumers and lead to the generation of lifetime value (lifetime customer value).
Taking note of these benefits, many companies, both start-ups and major companies, are entering digital D2C one after another, and the market is growing at a high level.
Reference:
https://www..co.jp/mk/column/6908
Expected to reach 2.22 trillion yen in 2020 and 3 trillion yen in 2025
Based on the above, the digital D2C market is expected to continue to grow over the medium to long term. Market estimates and forecasts for successful online advertising companies are shown in the graph below.
*Estimated based on the past five years of proprietary data from popular online advertising companies and surveys of related industries. Forecasts from fiscal 2020 onwards are the company’s forecasts. *Does not include transaction volume of intermediary business operators such as e-commerce malls and businesses that sell products through them.
Reference source: Digital D2C market size predicted to reach 3 trillion yen in 2025 (Talesuru Net Advertising Co., Ltd.)
According to this forecast, it is expected to reach 2.22 trillion yen in 2020, 109% of the previous year, and 3 trillion yen in 2025. The new lifestyle with the slogan “stay at home” due to the coronavirus is also expected to encourage the trend of purchasing items through e-commerce rather than physical stores, further accelerating the growth of the digital D2C market.
Reference source: Digital D2C market size predicted to reach 3 trillion yen in 2025 (Talesuru Net Advertising Co., Ltd.)
Reference:
https://www..co.jp/mk/column/10122