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Perspectives

2B or Not 2B? Growth through new business models is no longer a question

The D2C2B opportunity

With growing consumer expectations, competition, and technology advancements, agility is more important today than ever before. Could business model innovation be the key to advancing your strategic priorities? Learn how companies can accelerate scale, value, and impact by exploring the D2C2B business model.

Business model innovation to meet consumers evolving needs

Today’s sheer magnitude of product and service options, increasingly available in the home and across nearly all facets of life, provide empowered consumers with never-before-seen choices. With a plethora of offerings at their fingertips, consumers are choosing based on who can best meet their needs rather than on long-standing brand assumptions or loyalties. According to NielsenIQ, during the pandemic, 67% of shoppers have changed their habits—including selecting new brands based on value, availability, and convenience.

To be successful in this dynamic environment, cross-industry players are converging to help meet consumer needs and combat market disruption. Companies need to be able to constantly build and flex new capabilities and adapt to the only constant: change. This key capability—agility—can manifest in many ways, including what business model a company pursues today, tomorrow, and in the long-term future.

2B or Not 2B: Growth through new business models is no longer a question

The rise of D2C2B

Across many industries, the direct-to-consumer (D2C) business model—offering a product and/or service directly to an end consumer—has proven successful over the years in attracting, engaging, and retaining consumers (e.g., video streaming services, D2C pharmacies, pet food, and razor blade subscriptions). However, Deloitte analysis suggests a growing trend in the shift from D2C toward a direct-to-consumer-to-business (D2C2B) business model—offering a product and/or service directly to end consumers (D2C) and later offering it through a business, in addition to or instead of offering it D2C exclusively (e.g., fitness trackers subsidized by employers, professional networking platforms, and online therapy offerings). (Note: Download the full report and refer to the Appendix for deeper dives into these business models.)

Deploying new business models, including D2C2B, can offer companies an opportunity to advance enterprise priorities including expanding reach, scale, and impact. Companies generally deploy multiple business models simultaneously and/or sequentially over time as enterprise strategies evolve, which can require ongoing assessment of business models to help ensure they align to and reinforce the enterprise’s overall strategy, mission, and ambitions.

Download the full report to explore:

  • Success factors from the D2C business model that companies should consider and leverage to evolve into new business models, including D2C2B.
  • The D2C2B opportunity for a faster path to scale and impact.
  • Recommended actions to help maximize value realization through the D2C2B business model.

Get in touch

   

Ryder Riess
Principal
Deloitte Consulting LLP
rriess@deloitte.com

   

Alex Sedler
Principal
Deloitte Consulting LLP
asedler@deloitte.com

               
   

Leslye Talpalar
Manager
Deloitte Consulting LLP
lebarth@deloitte.com

     

 

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