[D2C tip #5] You need to avoid channel conflict (For now)
The one thing you have to remember about D2C is that you shouldn’t see it as a replacement for your existing retail partners. Instead, D2C should be seen as an opportunity to create a new channel that will coincide with your current revenue streams. After all, channel diversification is key to growth for brands.
Another strategy that can help you to avoid channel conflict is to optimize your inventory. This is where you identify which products are performing really well with your retail partners, and which ones aren’t.
Since online retailers are the most significant source of revenue for most brands, you don’t want to draw sales and traffic away from those products that are performing well as it would be counterproductive.
Instead, with careful inventory planning, you can focus your strategy on those products that don’t perform well at your retail partners. Some brands have found that by limiting the products they offer on their D2C site ensures their retail partners avoid missing out on sales.