Any B2B Brand Can Bridge A Customer Gap

There’s kind of an identity crisis going on in the apparel industry. Consider Nike. The company that implored us all to “just do it” will take its own medicine to remedy low sales. Nike will move from wholesale and focus on eCommerce to bridge a customer gap.

As Business Insider writes, analysts now see 2017 as a “rebase year” for the sneaker giant as it builds on its “direct-to-consumer infrastructure.”

Companies of all shapes and sizes must contend with this fast-changing commercial landscape. The age of eCommerce shows how a customer gap develops when behavior changes. And because this can happen quickly, it requires a fast and resilient response.

In Nike’s case, the company reported on March 21 a significant drop in the volume of orders it expected from retailers over the next six months. For the first time in seven years, Business Insider writes, Nike saw a drop in anticipated orders.

So, the writing is on the wall. Nike can’t simply put a lot of inventory into its brick-and-mortar channels when its customers are shopping online, when athletic footwear sales are on the decline, and when rival brands are nipping at its toes.

Analysts say Nike’s emphasis on supply chain speed and product improvements will, along with direct-to-customer efforts, preserve the brand.

B2B Goes Direct to Bridge Customer Gap

Nike may be the most prominent example of a manufacturer changing strategy to keep customers. But it’s not alone.

One recent survey conducted by Forrester Consulting shows that B2B businesses recognize the benefits of direct-to-customer eCommerce. But, they don’t take big steps in that direction because eCommerce has not been a big part of their world.

Consequently, they continue to rely exclusively on their channel partners and “online intermediaries”.

But, generally, B2Bs that do sell direct  to customers report the benefits include:

• Developing insight of their customers.
• Gaining more control of the customer experience.
• Increasing sales.

Finally, if B2B manufacturers shift from wholesale, as Nike is doing, that does not at all mean they will eliminate their sales channels. But, what it does require is greater visibility and control of their inventory to optimize stock across multiple sales channels, plan for demand, and optimize fulfillment.