So, now we’ve gone through the pros and cons of a D2C business model, let’s visit a few best in class case studies of how some well known brands have found success with D2C. Starting with Nespresso…

As a legacy brand that’s known for its unique coffee machines, Nespresso’s focus lies in providing premium, high quality coffee machines and capsules to consumers. This focus naturally led Nespresso to veer towards a business model organized around providing exclusive and personalized services to shoppers, and so, it moved into the D2C space early.

In 1996, Nespresso opened its first website to promote its coffee expertise and products, and by 1998 it had developed online ordering capabilities too. Today, Nespresso isn’t a brand that’s widely available through typical retail channels. Instead, it relies on its D2C website and app - with the help of its bricks-and-mortar stores called ‘Nespresso Boutiques’ - to generate the majority of its business.

The compelling value proposition that Nespresso uses to entice consumers to shop with the brand is its product variety - shoppers have many different coffee blends, machines and accessories to choose from. Nespresso also offers an ‘Easy Order’ program, which makes it super convenient for consumers to replenish their caffeine stocks through a subscription model, and also reward its users with an occasional gift for their ongoing loyalty.

Ultimately, the key ingredients involved in Nespresso’s success are - 1) a strong and regular user base who are willing to shop outside of their main retailer channels to get a quality product that they care about. And 2) a commitment to providing a convenient subscription model that incentivizes ongoing brand loyalty through extra features and rewards. For Nespresso, this was the perfect blend to achieve the D2C eCommerce success that it’s experienced over many years.

Next up, let’s learn about Dollar Shave Club…

Best in Class D2C