Consumer business
franchisekaro | July 11, 2021 | 0 Comments

Why should you consider a D2C franchise business opportunity?

Why should you consider a D2C franchise business opportunity?

Here are a lot of factors which are pushing companies to consider a D2C model especially in India. And this throws up totally new business opportunities even in the franchising world. Recently Mercedes Benz has announced that it is bringing a D2C model where their cars will be sold directly to the customers from the company.

1. Transparency in sales

With so much adoption of the internet and social media and the uncertain Covid scenario, many global brands are switching to the D2C model. Reasons are many but one of them happens to be the transparency in sales. Franchisor or global brands will have more control on direct sales which will give them better transparency in the entire sales process.

2. Direct relationship with the customers

Another reason for switching over to D2C model is to get in direct touch with the customers and offer them better sales and after sales experience. This is also part of the overall marketing strategy of many companies where the thought process is to know your customer (KYC) better.

3. Lower investment for the franchise owner

So, as an entrepreneur this would mean that franchise will be available at a much lower investment. As there would be no huge inventory costs which will be borne by the franchise owner. This is one of the upcoming franchise business model where entrepreneurs will have access to the best brands with the least investments.

4. Better customer service

Another bigger benefit that will eventually get passed on to the customers would be the superior after sales and customer service. This is again a win-win situation for the franchisor-franchisee-customer relationship. This would eventually result in better ROIs for all the three stakeholders.

5. Better pricing to customers

Last but not the least, customers will not have to bargain much with the mediators as sales will be directly handled by the company. Discounts which would otherwise get missed to be passed on to the customer will now reach the end consumers. Additionally, this would also result in uniform pricing of products / services for customers at different locations.

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