5 examples of manufacturers that successfully moved to eCommerce
Miguel Nicolás
25/08/2020
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Let´s see 5 examples of manufacturers that moved to eCommerce: the advantages of direct sales to the end customer with inspiring successful stories.
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Recently, we have talked about the advantages that electronic commerce has for manufacturers, which are many and important. Anyway, once the theory is seen, it is often helpful to see how some companies have paved the way in a practical way (and they are doing great, by the way).
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5 examples of manufacturers that successfully moved to eCommerce
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Let's see what happens when we leave B2B (Business to Business) and B2C (Business to Consumer) and we focus on D2C (Direct to Consumer).Although it seems that we are playing with such an acronym, it is actually something very serious that can make you rethink the meaning of your business model and reinvent yourself.There is really more to look at than we might think at first.We have selected several manufacturers from different sectors, both domestic and international, to get a broader view.
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#1 – McLaren
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If you have kids, you have surely heard of the famous McLaren baby seats. In recent years, they have become one of the most desired items and in greater demand despite having a high price.It is seen that they have given a lot of thought to how to reach the end customer, skipping distributors, but without hurting them too much because they still need them.The solution has gone through a range that they have called Direct-to-Consumer, which is sold exclusively online. They do not hide that the main advantage is that you save costs - without losing quality - by eliminating agents.
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INSIGHT: Take care of the distribution channel especially if it is what you have been supporting yourself up to now. The idea of a line of online exclusive products is a good solution.
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#2 – Kartox
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Companies with an innovative gene always have a competitive advantage. This is undoubtedly the case for Kartox and its parent company, Font Packaging.After 3 generations of specialists in the manufacture and design of cardboard packaging, they knew how to surf the wave of eCommerce as manufacturers.The business line is completely separate, letting Font to continue in charge of wholesalers and other manufacturers, while Kartox sells online for smaller businesses and individuals. They even serve orders from a single unit, something uncommon in their industry.
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INSIGHT: Unlike McLaren, which sells to the same customers as its distributors, in the case of Kartox, through eCommerce, they have reached a different segment that was not directly covered.
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#3 – KaveHome
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Selling furniture online is such a good idea that there is a lot of competition. If we add to that the fact that one of the most important trends is branded by a giant like IKEA that, in reality, is committed to affordable design, things can get a little more complicated.KaveHome is an example of how a manufacturer that moves to eCommerce can fight for an interesting market share. Originally, its founder sold sofa- beds and, with perseverance and knowledge of the furniture industry, he found a way to sell his own designs around the world.First, he started an eCommerce in 2013, and thanks to the success he had, he was able to consider bringing his products to retail a few years later.
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INSIGHT: ECommerce is a great way to validate the viability of a given project. By having lower fixed costs, it is the ideal platform to grow later, controlling the investment.
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#4 - Reformation
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Like the home sector, another one that is more powerful is that of online fashion. There are numerous examples of vendors selling third-party products, but many clothing manufacturers have also started selling their designs online.The case of Reformation is quite interesting because, in addition to using the online store to distribute its lines of women's fashion in combination with its physical stores, it is also a communication channel to enhance its values of sustainability and ethical work.
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INSIGHT: By using copywriting we are not only more persuasive: we can also use storytelling resources to create a private label narrative that is not swallowed up by that of a hypothetical distributor.
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#5 – Who gives a crap
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One of the star products, the niche par excellence during the confinement derived from the health crisis of COVID-19.Indeed, we are talking about toilet paper.Who gives a crap is one of those amazing projects worth checking out. Selling toilet paper online directly to the consumer can be complicated, especially since, along with cellulose tissues, it is the only product in its catalog, and the margin should not be something to shout out about .In fact, its positioning in terms of price is that of a Premium product, since it has a cost far above what a standard roll costs.That said, it has two advantages: the supportive side (50% of the profits are used for the creation of toilets for communities with sanitary problems) and recurrence. We all consume this type of product regularly.
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INSIGHT: For manufacturers of consumables or high-turnover products, the online channel is very interesting. Once the user is acquired, we can retain them due to quality and service, which means that we stop generating business for the distributor.
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What do you think of these 5 examples of manufacturers that successfully moved to eCommerce? Do you realize that you can do it too?
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Images | Unsplash and linked websites