However, if manufacturers can create a direct selling business model that works, it’s a potentially lucrative revenue stream because a significant number of consumers are open to this option. Ecommerce has changed and it’s continuing to change. Avon cosmetics, Tupperware, Aqua guard and Amazon.com are examples of companies engaged primarily in direct marketing. "Consumers may benefit from the ability to buy cars directly from manufacturers – whether they are shopping for luxury cars or economy vehicles. Why Brands are Going to Direct to Consumer. Manufacturer to consumer: Direct marketing includes use of personal selling, direct mail, telephone selling and internet. This trend doesn’t apply exclusively to customer-facing products. For example, this could include new product liability risks related to labeling and shipping or cyber and general liability risks that come with running an e-commerce store. A recent example of direct-to-consumer advertising is Pfizer’s commercial for its anti-cholesterol drug, Lipitor. Brands large and small across industries are racing to embrace the opportunity of selling direct. A television spot featured Robert Jarvik, creator of the artificial heart and a “distinguished doctor.” Jarvik tells viewers that even as a doctor, he worries about his cholesterol. The company contacts customers directly through salespersons, mail, telephone, or internet and makes sales. Expanding liability risk: Selling directly to consumers introduces new exposures to the manufacturer that wholesalers or retailers may typically take responsibility for as part of third-party contractual agreements. Direct to consumer means you are selling your product directly to your end customers without third-party retailers, wholesalers, or other middlemen. For example, auto parts manufacturers design and sell goods to auto companies that sell their completed vehicles through auto dealers. The model of the multichannel retailer is failing, and it’s falling apart because the margins are small. Apple is a great example of the shift of brands selling directly to consumers. The Shift to Direct. The writing is on the wall. In 2017, 61% of all wine revenue came from direct to consumer sales – cheers! And the number of manufacturers selling directly to consumers is expected to grow by 71% this year to more than 40% of all manufacturers. The products are sent directly to … Here are just a few examples: Nike is investing heavily in their direct to consumer model, predicting to grow DTC sales from $6.6 billion in 2015 to $16 billion in 2020. Many well-established companies run both B2C and B2B operations, but they typically apply different marketing and sales strategies when dealing with consumers vs. businesses.