PA Consulting’s Alan Treadgold, a retail expert, is quoted in The Grocer. Alan shares his view on direct to consumer businesses. The article also draws on recent research from PA Consulting.
Alan comments on the importance of brand in a crowded marketplace. He says: “You need to be able to invest significantly in marketing, which can still be very expensive when you’re trying to establish a new brand, although there are ways of mitigating those expenses, particularly using social media and using the data you’re collecting.”
The article also references PA’s The direct-to-consumer opportunity report. The report found that one of the key drivers behind the trend is the opportunity to increase sales: “Ninety-eight per cent of consumer goods companies surveyed in a 2018 study by consultancy firm PA said they expected D2C branches of their business to increase sales in the next year, with a quarter expecting them to grow more than 20% by 2020. This trumped, by far, the benefits of marketing effectiveness (14%), brand experience (10%) and better consumer relationships (9%).”