Almost all consumer products are bought through an intermediary. We buy products from retailers who bought them from the original manufacturer. Right now, I’m sitting over a breakfast cereal which was manufactured by Kellogg’s but bought at the supermarket.
Over the last year, I have spoken to hundreds of retailers and brands seeking to understand the growth in online marketplaces. One of the implications, that few have yet fully appreciated, is that “direct-to-consumer” sales by manufacturers are about to take off.
Let’s look at the difference between the traditional retail and direct-to-consumer models.