New Brands Require New Models for Cross-Border Operations

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The emergence of the Direct-to-Consumer (DTC) model marks a pivotal shift in the landscape of cross-border e-commerce. Initially, the predominant framework was the Business-to-Business (B2B) model, focusing on Original Equipment Manufacturing (OEM) as its cornerstone. 
However, the past decade has witnessed a profound transformation propelled by advancements in Internet technology, the ubiquitous presence of social media, and shifts in consumer behavior. Consequently, an increasing number of brands have embraced the Business-to-Consumer (B2C) model for international expansion. Simultaneously, the DTC model, facilitating direct product sales to overseas end consumers without intermediaries, has garnered significant attention.
Yet, recent years have presented formidable challenges for brands worldwide. The relentless surge in marketing and customer acquisition costs, escalating brand competition, and concerns about global consumption contraction have exerted substantial pressure. Notably, early-listed American DTC brands such as Warby Parker and On Running have encountered transient setbacks in performance and grappled with personnel restructuring dilemmas, leading to market skepticism regarding the efficacy of the DTC model.
Nevertheless, the DTC model remains a focal point for brands venturing into international markets. It promises shorter consumer connections, facilitated by efficient brand transmission through digital marketing, ultimately leading to tangible sales conversion results. Moreover, standalone websites emerge as potent tools enabling authentic entry into the global consumer market. 
Beyond establishing direct product-consumer linkages via digital means, these platforms serve as crucial conduits for future enterprise customization transformations. Against the backdrop of globalization, brands intensify their emphasis on branding, continually enhancing brand-building capabilities through digitalization, user operations, content creation, and other strategic maneuvers, while maintaining product competitiveness.
1. Insight into three significant global consumption trends and viable strategies for DTC brands:
 – Trend 1: Increased complexity in consumer decision-making during economic cycles.
 – Trend 2: Shifts in consumer channel preferences in the post-pandemic era, necessitating exploration of offline channels alongside online strategies.
 – Trend 3: A paradigm shift driven by the youthfulness of the consumer mainstream, emphasizing social responsibility and ethical consumption.
2. Innovative assessment model: Deliberating on the alignment between segmented categories and the efficacy of the DTC model, thus aiding primary overseas brands in gauging suitability and strategic positioning.
3. Return to the overseas field: Crafting pathways for cross-border sellers to excel in DTC brand internationalization, transcending the limitations of conventional weak brand models. Crucial operational nodes include:
 - Consumer insights: Timely and profound consumer understanding underpins brand resonance and effective marketing.
 - Brand building: Systematic construction of a distinct brand identity forms the bedrock of DTC success.
 - Marketing and customer acquisition: Adapting marketing strategies to regional nuances, leveraging local influencers, and curating high-quality content to optimize customer acquisition and retention.
In conclusion, this paper presents a comprehensive roadmap for DTC brand internationalization, underpinned by strategic insights, innovative assessment frameworks, and operational imperatives, reflecting a shared commitment to the enduring evolution of brand development in the global arena.
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New Brands Require New Models for Cross-Border Operations

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