Solteq Insight

Download our new eBook from the Direct-To-Consumer (D2C) series and learn about the incumbent manufacturers' dilemma when using digital sub-brands

This eBook introduces the concept of the "incumbent's D2C dilemma" and how to assess the potential of launching a digital sub-brand. The D2C eBook series is designed for business leaders, who want to base their company's business development strategy and investments on a foundation that assumes a wide perspective on D2C transformation, instead of blindly following the next-best-trend in eCommerce.

Many traditional manufacturers with their established product distribution networks (i.e., "incumbents"), spot themselves in an uncomfortable position. On the one side they feel attacked by new digital-native players that disrupt their market with an innovative D2C business model. While on the other side they feel strong legacy ties and commitment to their distribution partners, hindering them to sell directly to consumers themselves. Some of these incumbent manufactures may consider the introduction of an own digital sub-brand for leap-frogging their own D2C transformation, without jeopardizing their legacy business and partnerships.

While there is ample evidence for the benefit of the sub-brand approach for digitizing one's operations towards a Digital-To-Customer business model, we venture that its effect for a Direct-To-Consumer business model is less clear. The key issue is that sub-brands undermine the top two D2C arguments presented in our previous eBook: Owning the customer relationship and brand control.

The eBook gives you:

• the introduction to the Incumbent's D2C Dilemma concept
• an understanding of the benefit of a digital sub-brand
• arguments why a sub-brand may be more promising the Digital-To-Consumer transformation
• arguments why a sub-brand may be less promising for the Direct-To-Consumer transformation

Download the eBook "The Incumbent's Dilemma" >