D2C is the new B2B for Food Manufacturers

Coronavirus swept into 2020 with a gusto knocking everyone sideways and upsetting any growth businesses were expecting. I haven’t found an industry untouched by the evil and destructiveness Covid-19 left for the economy.

The food industry has had many casualties. What took everyone by surprise in a matter of weeks were the opportunities that quickly developed.

As supermarkets were struggling to cope with demand, emotional shopping and unprecedented regulation, we saw a clear indicator. Anyone that could sell online could experience growth and demand only dreamt of a few weeks earlier.

Online stores that could pivot were experiencing that growth.

We had a B2B client that was seeing massive growth overnight, and that spurred us on to reach out to other B2B business able to pivot to D2C.

We started seeing other businesses that saw Direct to Consumer as a considerable opportunity and made the switch quickly.

We created various posts on LinkedIn and Facebook that got loads of attention. We didn’t understand why more businesses were not taking the opportunity to expand and offer their product directly to the consumer.

Businesses need to be able to respond to change in their particular sector and their industry in general. When everyone was looking for more food, and they were hoarding buying large quantities of anything they could find. It became clear fast that supermarkets couldn’t handle it but the wholesale business could.

Everyone has a website.

Wholesale or B2B has its ways of doing business. They rely on sales rep and reordering. As part of developing their own sales process, wholesale and B2B created online portals for companies to buy without the need for a sales rep. The existing portal only needs to undergo some simple adjustments to be better suited for the average to consumer to use and enjoy using this e-commerce website So, allowing access to customers to buy the same quantity at the same expectations isn’t a big jump. With changes to the check-in process and small improvements to product details, the website is ready up and running.

B2B and Traditional Channels

One of the most significant issues facing B2B is deciding where their allegiance lies. Are they committed to there clients whether supermarkets and general retail or their growth and opportunities? What Corona consumers and businesses alike was that they could rely on the internet and get the products that they needed. Websites, online deliveries, buying from social sites and other internet-based services are maturing and helping the average family get the food. A new trend is brewing where more and more people will rely on the internet for ordering. Families habits will change. B2B needs to think about the future. Their clients and retail will remain, but wholesale and B2B can’t afford to overlook the value of channels online.

Marketing and Communication Changes.

B2B works with sales managers and regular reordering by businesses. They know what they want, and they want to know prices and delivery times t restock. Sales have an opportunity to upsell and cross-sell but its much less pretty and more functional.

D2C creates a demand for more marketing channels to influence buying decisions. Social media across various platforms can engage shoppers with cooking ideas and featured products. Paid campaigns can catch shopper’s attention. Retargeting through emails, ads and a developed web presence can generate significant sales, a relationship and expanding opportunities.

Wholesale Doesn’t mean the wholesale.

Most B2B businesses are selling in bulk instead of single units. Wholesale companies have grown from a model that requires them to sell large minimum quantities of their product. The reality is that it is not always true. There are instances where wholesales can sell in smaller amounts. The small group of products that can sell as individual purchases poses an opportunity to test the waters and attract consumers.

Everyone forgets about that relationship.

One thing we learn if we didn’t know already; the products they like they will do anything to get them. You're selling products via all those stores and you have data on where the most significant sales area and what products are selling the most. You don’t have a relationship with them. Maybe that’s not a problem, but you would be lying to yourself. With fierce competition, brand recognition and creating that meaningful relationship can help sales. Developing the D2C channel can strengthen those relationships, increase brand strength within that competitive playing field and strengthen other channels.