Comment: Direct-to-consumer sites need to communicate the benefits

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Poor old brands. Once they held the upper hand over retailers, now they are fighting a constant battle to get their products on store shelves.

The rise of private label, the growth of discount stores, switch and save schemes from grocers and the trend towards smaller shops all means one thing - less shelf space for all but the mightiest brands.

To wrestle back the initiative, some brands are looking to bypass retailers and sell direct to consumers. Over the past few months I get the impression this has become a matter of urgency for manufacturers.

There have already been success stories (think Apple’s retail stores or Nespresso) that have turned the retailing of brands’ wares into an experience and they have built their own systems to lock consumers into their products. The past couple of years have also brought pop-up shops from brands ranging from Marmite to Pop-Tarts to generate buzz.

Now brands are experimenting with ways of selling direct to consumers. P&G launched an ecommerce site in the US in 2010, for example, selling a range of its brands. Nestlé, meanwhile, launched Marktplatz in Germany in 2011.

On one hand, I can see the appeal of such sites selling regular deliveries of bulk quantities, such as washing powders and nappies, or items that need to be regularly replaced, such as toothbrushes or razors.

Amazon is already pushing its Subscribe & Save service - offering discounts and free delivery for those willing to commit to regular orders. But I’m also pessimistic - surely the inconvenience of buying from separate sites (on top of the normal weekly grocery shop) will deter most shoppers.

To work, direct-to-consumer sites need to communicate the benefits of the model - that by cutting out the middle-man (retailers) they are able to offer lower prices.

In addition, these sites could offer shoppers something they can’t get at a retailer, such as exclusive promotions or even products.

This might attract some consumers, but I doubt Tesco will be worrying too much about a Persil or Pampers shop opening in the near future.