【悲報】2023年、有名D2C企業がオワコン化していく理由がヤバすぎる…

Summary

In this video, the speaker discusses the significant challenges facing the D2C (Direct-to-Consumer) industry in 2022, highlighting three main reasons for the decline in performance of web advertisements. First, increased competition has driven up costs per click and acquisition. Secondly, privacy regulations and changes in personal data laws have made precise targeting difficult, notably influenced by Apple's privacy updates and Japan's revised personal information protection law. Thirdly, stricter regulations under the Pharmaceutical Affairs Law have limited advertising claims for health and cosmetic products. The video also touches on potential strategies for adapting to these changes, emphasizing the importance of transitioning towards platforms like Amazon, which align better with consumer-centric business models.

Takeaways

• 📉 The performance of web advertisements has deteriorated due to increased competition and regulatory changes, leading to higher costs and lower conversion rates.
• 🚫 Privacy regulations, particularly the strengthening of privacy laws in 2022 and Apple's privacy changes in 2021, have significantly impacted targeted advertising and user tracking.
• 💊 The intensification of pharmaceutical regulations has made it more challenging for D2C brands, especially in the health and beauty sectors, to make direct claims about product efficacy.
• 🔄 The negative feedback loop caused by decreased ad performance and increased competition has led some brands to lower product quality, which in turn affects customer satisfaction and long-term value.
• 🛒 The top reason for D2C brands struggling is the high volume of customer complaints, which can be more than traditional retail methods and even other D2C brands.
• 🔥 The speaker suggests using Amazon as a platform for D2C businesses due to its customer-centric approach and robust ecosystem that values fair value and product quality.
• 📈 Amazon's algorithm and review system promote a fair value system that rewards high-quality products and penalizes low-quality ones, encouraging a positive brand reputation.
• 💡 Amazon's growing investment in the ad tech industry presents new opportunities for D2C brands to leverage Amazon's customer data and ad solutions for more effective marketing.
• 🌐 Amazon's comprehensive data on customer behavior provides a unique advantage for D2C brands dealing with physical products, as it covers the entire customer journey from awareness to repeat purchases.
• 🔄 The speaker emphasizes the importance of adapting to the changing landscape of D2C marketing and the potential of Amazon as a solution to the challenges faced by the industry.

Q & A

What is the main issue discussed in the script?

The main issue discussed in the script is the challenges faced by D2C businesses in advertising and marketing, particularly the decline in web advertisement performance, product quality issues, and the high volume of customer complaints in the industry.

Why is the performance of web advertisements deteriorating?

The deterioration in web advertisement performance is due to three main reasons: an increase in competition leading to higher costs, changes in privacy regulations affecting targeted advertising, and stricter regulations under the Pharmaceutical Affairs Law affecting the advertising of certain products.

How have privacy regulations impacted targeted advertising?

Privacy regulations, particularly the changes in personal information protection laws and Apple's enhanced privacy measures, have limited the use of user data for targeted advertising, leading to a decline in ad performance and increased costs for businesses.

What is the second-ranked issue affecting D2C businesses?

The second-ranked issue is the poor quality of products sold through D2C models. This is partly due to the pressures of competition and regulatory changes, which may lead companies to lower their production costs and, consequently, the quality of their products.

What is the most significant problem in the D2C industry according to the script?

The most significant problem is the high volume of customer complaints, which indicates a structural issue in the D2C industry where businesses may be focusing too much on advertising and not enough on delivering satisfactory products and services.

How does the script suggest businesses can improve their situation?

The script suggests that businesses should focus on creating high-quality products that satisfy customers, thus reducing the reliance on aggressive advertising and breaking the cycle of poor product quality leading to customer dissatisfaction and complaints.

What is the role of Amazon in the D2C business model?

Amazon is presented as a potential solution for D2C businesses due to its customer-centric platform, its established mechanisms for fair value through algorithms and reviews, and its growing role in the advertising industry, which could offer new solutions for businesses facing the mentioned challenges.

Why is Amazon's advertising business seen as a promising area for D2C businesses?

Amazon's advertising business is seen as promising because it has access to extensive customer data across the entire purchasing journey, it is investing heavily in ad tech, and it offers targeted advertising solutions that can help businesses overcome the challenges posed by privacy regulations and increased competition.

What advice does the speaker give to D2C businesses for the future?

The speaker advises D2C businesses to consider utilizing Amazon's marketplace and advertising solutions, focusing on creating high-quality products that can thrive within Amazon's customer-centric and fair value ecosystem, and adapting to the changing landscape of advertising and e-commerce.

How does the speaker's experience with Amazon influence their perspective on the D2C industry?

The speaker's experience with Amazon, having worked with the platform for over 10 years and achieving significant sales figures, has led them to believe that Amazon's focus on customer satisfaction and its evolving advertising solutions can provide a solid foundation for D2C businesses to succeed.

What additional services does the speaker offer to businesses considering sales on Amazon?

The speaker offers free consultations to businesses considering sales on Amazon and shares insights and know-how through a closed group on LINE, aiming to provide valuable and exclusive information to help these businesses navigate the challenges of the D2C industry.