Unlocking the benefits of direct-to-consumer (DTC) strategies without alienating dealers
Journal
Business Horizons
ISSN
0007-6813
Type
journal article
Date Issued
2025-04
Author(s)
Abstract
This study examines the evolving role of direct-to-consumer (DTC) strategies among product manufacturers, with a particular focus on their relationship with dealer-based customer engagement. While moving closer to customers through DTC models offers significant benefits—including enhanced brand identity, improved competitive positioning, valuable data insights, and increased customer retention—these strategies can also generate tension with traditional dealer networks. Such tensions give rise to the DTC paradox, where DTC initiatives fail to deliver anticipated returns and simultaneously strain dealer relationships. Drawing on four in-depth case studies from leading international manufacturers, this article outlines a framework for implementing DTC strategies across key phases of the customer journey: awareness, purchasing, usage, and retention. The findings demonstrate that rather than bypassing dealers, manufacturers can achieve better outcomes by integrating dealers into their DTC strategies. This hybrid approach reduces channel conflict, enhances digital engagement, and fosters stronger, long-term customer relationships. The study contributes to the literature on omnichannel marketing, hybrid sales models, and co-opetition, offering actionable insights for manufacturers navigating the challenges of digital transformation while maintaining productive dealer collaborations.
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier BV
Subject(s)
Division(s)