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Home » D2C model can have big impact on gross margin

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ColumnsMoser on Manufacturing

D2C model can have big impact on gross margin

October 8, 2019
Harry Moser
KEYWORDS direct-to-consumer / reshoring / total cost of ownership
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In my last column, we saw how Sherrill Manufacturing re-established the flatware industry in the U.S. by reshoring production. Sherrill built a successful “Made-in-America” brand and remained price competitive with offshore rivals by selling direct to consumers (D2C). In this column, we will examine how other manufacturers are winning with a D2C business model.

Companies that are considering a D2C transformation face several challenges, such as choosing an e-commerce platform; engaging with customers; and building a reliable transaction process. But, for manufacturers that are willing to commit to a new business model, the rewards can be very attractive.

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