DTC Case studies of manufacturing industries
The 3 case studies or examples of manufacturing companies that have disrupted their industry and connected directly with their customers by eliminating middlemen are Triumph Motorcycles, Canyon Bicycles, YT Industries, and Bonobos. Triumph Motorcycles ventured to business to consumers model through creating a seamless website and integrating features which help obtains a 23% increase in online revenue and 45% increase in mobile traffic. Additionally, Canyon Bicycles’ PPS (Perfect Position System) tool, 30-day return policy with no questions asked, and native speaking and technologically savvy customer service representatives gaining the company an almost €159,000,000 turnover each year plus online market coverage of 104 countries. Meanwhile, Bonobos 90%+ rate of responding to all phone calls within 30 minutes and support emails plus its free, no-questions-asked returns making the company a $310M brand.
CASE STUDY 1: MOTORCYCLE MANUFACTURING COMPANY
- Bridgeline identifies Triumph Motorcycles as the largest motorcycle manufacturer in Britain.
- Triumph Motorcycles has been reaching excellent performance in the Latam and Europe motorcycle markets.
- Their sales have increased 25% in Latam, 29% in Brazil, and 449% in Colombia.
- Triumph Motorcycles uses a direct-to-consumer sales model.
- They enable their direct-to-consumer sales "through integrations with UPS logistics, eBay and Amazon marketplace, motorcycles, parts, accessories, clothing, and merchandise sales are on one site, with the customer journey and supply chain logistics tracked from click to ship. "
- Triumph Motorcycles's online revenue grew 23% in 2018 and their mobile traffic grew 45% in the same year.
CASE STUDY 2: TRANSPORTATION SECTOR
A. Canyon Bicycles
- Canyon Bicycles is a German manufacturer of racing bikes, mountain bikes, and triathlon bikes.
- Canyon Bicycles also ships bikes to Latin America, including Brazil, Ecuador, Peru, Chile, Guatemala, Bolivia, Haiti, Honduras, among others.
- Since 1996 when the company began, Canyon Bicycles started and continues to sell bikes directly to consumers.
- According to an interview with Canyon Bicycles, the company has taken up "multichannel marketing and direct-to-consumer strategies in addition to traditional sales channels."
- They sold bikes online until they were recognized worldwide.
- Their online e-commerce platforms incorporate software information that directs the buyer through their purchasing process.
- Their PPS (Perfect Position System) guides customers to the correct size bike for them.
- They provide a no-questions-asked return policy for up to 30 days after the purchase date.
- Canyon sets up demonstrations at shows, fairs, and other events to increase the number of times a customer can engage with their bikes.
- The company employs "native speaking and technologically savvy customer service representatives who are able to solve most questions about the bikes."
- Canyon Bicycles currently sponsors two pro-cycling teams, which has worked to increase their market share.
- They employ 850 people across the 104 countries they sell to.
- They have an annual turnover of approximately €159,000,000 ($178,254,900 USD).
B. YT Industries
- YT Industries is a German direct-to-consumer bike manufacturer.
- YT Industries ships bikes to South American countries such as Bolivia, Chile, Ecuador, Peru, and Venezuela among others.
- YT Industries began their direct-to-consumer model in 2015.
- They sell their products exclusively through online sales "and thus arrive directly from the manufacturer to the customer."
- Customers have commented that "their website is well-designed and easy to navigate, making it easy to purchase and address many questions that you have regarding the process and how to assemble."
- YT recognizes the way their direct-to-consumer model may disrupt brick-and-mortar bike shops.
- As of 2017, YT's turnover has doubled every couple of years.
- A recent poll reported that YT was high many bikers' wish lists, even compared to popular competitors.
CASE STUDY 3: ANY OTHER INDUSTRY
- Bonobos an e-commerce-driven apparel subsidiary that Walmart began in 2007 in order to design and sell men's clothing directly to consumers.
- Bonobos ships to Mexico, Peru, and Madagascar.
- Bonobos aims to sell and distribute exclusively online on a global scale. (Source 10)
- To mitigate customer's fears about ordering clothing online without the opportunity to try them on, the company offers free, no-questions-asked returns.
- Because of this model, Bonobos encourages customers to order multiples of the same item in different sizes, and then return the ones that do not fit.
- Business Insider reports that Bonobo's model of direct-to-consumer sales is “the best way to convince people to regularly buy clothes from a new online company."
- Additionally, they wrote that Bonobos focuses "on a level of customer service other businesses didn’t offer.”
Bonobos achieved the following statistics overview the responsiveness of their support team:
- 90%+ rate of responding to all phone calls within 30 minutes
- 90%+ rate of “great” email ratings
- 24-hour average for email response time
- Because of their free, no-questions-asked return policy, Bonobos gained their customers’ trust and became a $310M brand.
- According to SimilarWeb, Bonobos's traffic rate is approximately 53.5%.
- Bonobos won Multichannel Merchant’s Customer Experience Leader award in both 2015 and 2016. They won this award over companies like Fossil, Lowe’s and Coach.