‘V-Commerce’: How Direct-To-Consumer Products Cut Out The Middleman | TODAY
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‘V-Commerce’: How Direct-To-Consumer Products Cut Out The Middleman | TODAY


>>>ALL RIGHT. WE’RE BACK 8:40. THE RISE OF A NEW ONLINE SHOPPING COMPANY CALLED DIGITALLY NATIVE VERTICAL BRANDS, V-COMMERCE FOR SHORT. THESE COMPANIES ARE BORN ONLINE AND TRADITIONALLY DON’T HAVE BRICK AND MORTAR STORES. INSTEAD THEY RELY ON SOCIAL MEDIA TO SPREAD THE WORD AND MAKE ONE-ON-ONE ATTENTION A PRIORITY ON WEBSITES. THAT DIRECT TO CONSUMER RELATIONSHIP HELPS REDUCE PRICES AND MAXIMIZE PROFITS. V-COMMERCE COMPANIES DID 6.6 BILLION IN SALES IN 2015 AND PROJECTED TO HIT $16 BILLION BY 2020. TO WALK US THROUGH ALL OF IT FINANCIAL EDITOR JEAN CHATZKY. GOOD MORNING.>>GOOD MORNING.>>I SEE YOU WENT ON A SHOPPING SPREE.>>I DID. I WANTED TO SHOW YOU THE LAY OF THE LAND. THEY FIGURED OUT COMPANIES WANT A RELATIONSHIP WITH THEIR CUSTOMER AND THE SHOPPING EXPERIENCE SHOULD BE EXPERIENTIAL. WE’VE GOT THINGS LIKE PELOTON BIKE WHERE YOU CAN TAKE A SPIN CLASS IN YOUR OWN HOME. THIS LUGGAGE FROM AWAY WHERE THEY HAVE CLUED INTO A FACT NO ONE WANTS TO FIND AN OUTLET AT THE AIRPORT SO YOU CAN USE IT TO CHARGE. SOLVING PROBLEMS. UNDERWEAR FROM TOMMY JOHN AND THIRD LOVE WHERE THEY ARE FOCUSING ON THINGS LIKE FIT. A LOT OF COMPANIES KEY IN ON PRICE. SO HUBBLE CONTACT LENSES HALF THE PRICE. HARRY SHAVE, HALF THE PRICE. COMPANIES LIKE BRANDLESS WHERE EVERYTHING IS $3.>>THEY ARE ABLE TO GET THOSE PRICES BECAUSE IT’S DIRECT TO CONSUMERS.>>THAT’S RIGHT.>>YOU GIVE US TIPS. FIRST OFF HOW DO WE FIND THESE V-COMMERCE COMPANIES.>>YOU MAY RECEIVE IN SNELL MAIL, LOOKS LIKE A VAL PACK, WHERE THEY ARE TOGETHER. GOOGLE THE WORDS DIRECT TO CONSUMER WITH WHATEVER YOU WANT TO BUY. DIRECT TO CONSUMER SHOES YOU MAY END UP AT A PLACE LIKE EVER LANE WHERE THEY ARE VERY TRANSPARENT ABOUT THEIR PROCESS OF MAKING PRODUCTS AND HOW MUCH IT ACTUALLY COSTS THEM.>>HOW DO YOU KNOW IF IT’S REALLY GOOD QUALITY STUFF AS WELL.>>YEAH. WELL, YOU KNOW BY LOOKING AT THE REVIEWS. THE REVIEWS NOT NECESSARILY ON THEIR WEBSITES. THESE ARE COMPANIES THAT ARE REALLY FOCUSED ON SOCIAL MEDIA SO YOU WANT TO LISTEN TO YOUR FRIENDS, LOOK AT YOUR FRIENDS SOCIAL FEEDS. IT AN EDITED LINE OF PRODUCTS ALL OVER SOCIAL MEDIA, THAT’S HOW PEOPLE ARE LEARNING ABOUT IT.>>THE ONE THING, WITH ONLINE SHOPPING, THEY WANT TO TRY IT ON. SOMETHING LIKE GLASSES.>>OR MATTRESSES.>>HOW ARE YOU GOING TO SEND A MATTRESS BACK?>>THEY MAKE IT VERY, VERY EASY. IT COMES IN A BOX, GOES BACK IN PA BOX. WE HAVE PRODUCTS FROM LISA HERE WHERE YOU CAN TEST IT OUT IN YOUR OWN HOME FOR 100 DAYS. IF YOU DON’T LIKE IT, YOU CAN GO AHEAD AND SEND IT BACK AND THEY WILL ACTUALLY PAY FOR IT. ALSO THINGS LIKE SWIM SUITS FROM ANDY. THEY ARE GIVING YOU A 30-DAY, I BELIEVE, FREE TRIAL SUITS YOU CAN TRY ON. NOBODY LIKES TRYING ON SWIM SUITS IN THE STORE.>>NOBODY DOES, BECAUSE IT DOESN’T LOOK GOOD NO MATTER HOW THE LIGHTING IS OR LOOKS TOO GOOD. NEXT SUBJECT, I GUESS, HOW WE CONSIDER THE VALUE PROPOSITION. WHETHER WE REALLY GET A GOOD DEAL.>>THAT DEPENDS WHAT YOU’RE BUYING. I MENTION BRANDLESS, WHERE EVERYTHING IS $3. SOME OF THEIR PRODUCTS ARE AMAZING DEALS. THEIR LOTIONS, THEIR BEAUTY PRODUCTS. OTHER PRODUCTS YOU COMPARE PEANUT BUTTER TO JIFF. JIFF IS CHEAPER. YOU TAKE INTO CONSIDERATION THIS IS NON-GMO, ALL ORGANIC AND YOU MAKE A CALL ON YOUR OWN. BUT THEY ARE NOT ALL AN AMAZING VALUE. YOU REALLY HAVE TO JUDGE.>>HAVE YOU TO DO YOUR HOMEWORK. A LOT ARE SUBSCRIPTION SERVICES WHICH A LOT OF PEOPLE ARE INTO.>>HUBBLE CONTACTS, HARRY’S SHAVE, THEY SET YOU UP. YOU’RE GOING TO GET SOMETHING ALMOST EVERY 30 DAYS. YOU HAVE TO WANT IT EVERY 30 DAYS, OTHERWISE YOU’RE PAYING FOR THINGS YOU DON’T USE. IF YOU’RE ONE OF THOSE CONTACT PEOPLE, ME, WHO GETS DAILY CONTACTS BUT WEARS THEM FOR MORE THAN ONE DAY. MY EYE DOCTOR IS NOT HAPPY RIGHT NOW.>>RIGHT THERE WITH YOU.>>YOU’VE GOT TO SLOW IT DOWN IN TERMS OF THE DELIVERY.

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