Originally Posted by
+Snoop
The direct to consumer model is much better for both the manufacturer and the customer as: the manufacturer deals directly and can get feedback from the end-user, as opposed to filtered feedback, and the benefit of the increased margin the manufacturer will make, and in theory less the customer pays (retail margin varies by product type). The down side for a manufacturer is unless they have an active e-presence, social media etc, their sales volumes are just not going to grow as they would selling in 1000 units for example via a retailer. Depends also on the product category. In the States Kuiu and Exo MTN Gear for example sell direct to consumer. Kuiu have invested heavily in direct to consumer marketing. Exo no so much, but both do "product placement" with leading you-tube channels. What I like about Exo though, is they hate the whole thought of professionally sponsored reps, and mostly put kit out there for guys to test, so they can improve their designs. That and they are all about producing a better product, sales volumes.
Both are excellent kit. Both are really expensive. Both - you either take a punt on buying and hoping the product fits, or finding someone who has one, and trying it. Your talking $600-700 USD product here. We have quality equipment being built locally by Twin Needle, Southern Lite Packs etc, so I'm going there for my next pack and supporting local.
For consumer products, take for example, dehi or free dried meals, you need a retail model as direct shipping to customer isn't going to meet deadlines, and as a "consumer/fmcg" product, you just have to have it in front of the punter in store. Dealing with retailers in not fun. You end up giving up a margin + potential rebates (advertsing, promotions, give aways) + in store support (potentially sales reps in store training and promoting your product). But for that you get bricks and mortar exposure, product availability, no doubt lower than RRP pricing, and hopefully no questions asked product support if it goes pear shaped.
If you want to buy NZ, that's awesome. I try to support local brands, for example Swazi, Hunters Element, Twin Needle. But is it NZ made? Or a NZ company that imports and markets overseas made products? Swazi outsources fleece, they had to as they were not competitive. Their high end jackets are robust and NZ manufactured still. Hunters Element/Stoney Creek overseas it appears. Twin Needle - awesome local kit. One brand I've actively moved to is MTN Gear - I've just replaced a Spartan Bipod with a MTN bipod. Why? Because it is a better product with the range of movement I need for where I use my equipment, and the Spartan fitting failed. The fact that Matt designed and produced these locally is awesome and love seeing him export internationally as that grows our economy. But at the end of the day it is a better product, that's why I bought it. Innovation is costly so I'm prepared to pay more in this case and buy direct as he is setting up his business base.
So, it depends. For consumer goods, your gonna be doing the majority of your sales through retail with 5-10% through a direct to web site. For higher end equipment retailers may not stock it, and you want to consider if they will support it if something goes wrong. For mine, technical equipment, you want a quality local provider who can cover warranty.
Do your research and trust the opinions of those you value.
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