Rob Bridgman is the CEO & Founder of Snug, the UK’s first Sofa in a Box company - where sofas are delivered in days and not weeks. Having worked in the furniture industry for over 10 years and across three generations within the furniture sector, Rob is challenging the industry and revolutionising the furniture e-commerce market with his innovative business model. By analysing and defining these questions given by Rob, below, you should be able to evaluate your business model to ensure it meets both yours and your consumer needs.
Recognising changing markets
The pandemic has revolutionised not only the way in which we live, but also in how we shop. It is this rapid shift in consumer behaviour that has accelerated digital adoption of the traditional retail experience. With this, comes a change in the way that companies must structure their businesses. From production to supply chain and delivery, it is vital for businesses to adapt to the environment around them. Brands that have acknowledged and responded to this change, including ourselves, are securing their future successes while those that don’t risk becoming irrelevant to today’s consumer.
Identify your consumer
To sell to your customer, you first must identify exactly who they are and secondly you must research and understand their behaviour - including how they make their purchase decisions. For example, its increasingly important to know how digitally minded audiences are becoming. How much time Millennials and Gen-Z in particular are spending browsing Instagram and other platforms opens a great opportunity to spend marketing resources on social commerce. Its currently one of the best sales tools for SMEs, allowing them to reach a core audience in a way that our more traditional competitors do not.
Pioneer different selling methods
One of the biggest trends emerging globally within the evolution of social commerce is livestream selling. While it is still early days for livestreaming in the UK, there a several brands emerging as frontrunners in this space. The phenomenon is already well established in China, with brands and celebrities reporting multi-million dollar revenue generating events in an overall market estimated to be worth $171 billion in 2020 (source: McKinsey & Company). It is also a fast-growing trend in the United States, where the livestreaming market was worth about $6 billion last year and is predicted to reach as much as $11 billion by the end of 2021 (source: Coresight Research).
Social commerce is a key part of our strategy at Snug and in in our experience can be a brilliant driver of sales. Using social commerce is also a way to connect content, community and commerce to significantly drive direct engagement with customers; leveraging ecommerce and facilitating live selling. Ask yourself, what would work best for you and your audience?
Establish partnerships
From ambassadors to suppliers, and even the team around you. Ensuring you are surrounded by the right people is invaluable in making your D2C business a success. Key partnerships, such as those with celebrity ambassadors, can give a company a voice beyond the brand itself – engaging both the companies’ audience and theirs. However, it is vital that all partnerships across the business, whether internal or external, are aligned with a brand strategy, image and tone of voice.
Create an innovative business model
Direct to consumer brands are proving successful in the ecommerce sector. When looking at your business model, ensure you are giving it a full 360 review. What is your USP? How can you reach and engage with your customers? What will it take to succeed in your sector? What analytics do you need to track to measure success? How do you want your brand to be perceived?
