Direct-To-Consumer Mix of Business

A leading beauty company reached out to Infomineo with a request to gain insights into the revenue share of Direct-To-Consumer (DTC) channels used by one of their competitors. Exploring opportunities to enhance their DTC strategy, the client wanted to understand how their competitor’s DTC channels were performing and how they could improve their own approach.

Our team conducted extensive research and was able to deliver a competitive benchmark.

Based on the information gathered and analysis, our team developed a sales share estimate for the competitor’s DTC contribution to total sales. This estimate included a breakdown of the sales share for each DTC channel type and the overall sales share.

Client Challenge

To have a clear overview of the revenue share coming from Direct-ToConsumer (DTC) channels of one of their competitors, our client reached out to us to identify the following:

The competitor’s Direct-ToConsumer sales strategies.
Insights about sales driven by online and offline platforms leveraged.
A summary overview to present the figures during an internal meeting with the CEO.

Our Solution

A framework to develop a proxy for the DTC e-commerce sales share (online), using information such as:

E-commerce share
E-commerce turnover
Brand websites sales
Qualitative insights from DTC sites

We delivered a competitive benchmark related to the percentage of their revenue derived from DTC channels leveraging premium news database Factiva, industry reports, competitor’s publications, and conducting advanced web search.

Outcome

We conducted research and invested efforts that resulted in the below:

Overview of Direct-To-Consumer channel types used by the competitor.
Indicators and values that could help in understanding the performance of each one of these DTC channel types.
Based on the gathered information and assumptions taken, a sales share estimation for the competitor’s DTC contribution to total sales was developed.