Business-to-consumer (B2C) is one of the most common ways for entrepreneurs to run a business. This type of business model is common because the transaction is done directly with the customer. You might be wondering what B2C is and why this type of business model is so popular. Read this article from start to finish!
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What is B2C?
Business-to-consumer, or B2C, is when a product is sold directly to the people who will use it. In other words, there is no need for a middleman between the business and the customer. The B2C business model has been used in places like shopping malls, traditional markets, and restaurants for a long time.
The way a sale is made is what makes B2C and B2B (business to business) different. B2C is when a company sells a product directly to the end consumer or to a retail store. B2B, on the other hand, focuses more on the industrial sector and sells the product in large quantities to other businesses.
B2C is used in the online sales system and is often found in the marketplace in the modern age. For example, Tokopedia, Lazada, Shopee, and other businesses have used B2C. B2C also includes small and medium-sized businesses (MSMEs) that sell their goods online and deal directly with customers.
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The B2C Characteristics
B2C Business Model (source: Freepik)
The B2C model is different from the B2B model in many ways. Here are a few important things about B2C:
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Simple transaction
Since the company and the customer talk to each other directly, the B2C transaction model is also simple. Some are sold directly, such as through MLM, and others are sold online.
The purchase-to-payment system is usually quick and can be finished quickly.
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Tough competition
The competition in B2C is tough because consumers have a lot of needs. As a result, there are a lot of products that are similar.
So, price wars make the competition among B2C businesses even tougher.
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Openness
Another thing about B2C is that it is open to everyone and has no limits. Any news about the company’s goods and services will be easily shared with the rest of the world.
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On demand
Customers’ needs are taken into account when B2C companies make their products. Based on what people want, the business model makes products. So, the price changes automatically to meet the needs of the market.
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How do the B2C Companies Work
To get good marketing results, B2C companies need to use the right method. There are some examples of how B2C companies should run, such as:
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Engagement with the potential customers
It’s not easy to get the attention of potential customers in a market with thousands of products and services. So, B2C businesses could try to get potential customers involved in their campaigns.
The key is to make interesting content and use a variety of methods to promote it.
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Build public trust through social media
People who want to buy products or services today often look for information about them before making a purchase. If someone wants to buy gardening tools, for example, he will look for them on the internet, either through apps or websites.
This is the exact time when marketing emails, discount coupons, blog posts, podcasts, and other social media content can be used to build trust with potential customers.
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Create a special program for loyal customers
Customers are always tempted by offers like discounts on every purchase, points that can be traded in for free products, or membership cards with lots of perks. B2C companies often give their most loyal customers VIP cards or other perks.
This special program could bring in new customers and make people more aware of your brand.
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The Examples of B2C Companies in Indonesia
B2C Business Model (source: Freepik)
Year after year, B2C companies see a market that is growing. Since smartphones and digital technology are now used every day, B2C companies are focusing on smartphone users and using the technology to their advantage.
Many apps and websites are also being made by B2C companies. The success of the B2C model depends on how trends change and what people want. Here are some examples of companies in Indonesia that sell to consumers:
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Bhineka.com
Bhineka.com was one of the first companies to offer an online shopping platform for business-to-consumer (B2C) companies. This company focuses on the different aspects of B2C. Bhineka.com focuses on meeting the needs of businesses by giving corporations a way to buy things.
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Lazada.co.id
Lazada is an online store that was started in 2012 in Southeast Asia and is now owned by Alibaba Group. This online store sells many different things and has its own warehouse.
Lazada has been open in Indonesia since 2012, and it is still growing.
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PT. Manulife Indonesia Life Insurance
PT Manulife Indonesia Life Insurance, also known as “Manulife Indonesia,” has been around since 1985. It is a part of Manulife Financial Corporation, a Canadian company that offers financial services in Asia, Canada, and the United States.
Manulife Indonesia has a number of financial services, such as health, accident, and life insurance. They also offer investment services and pension funds to both Indonesian individuals and companies.
Manulife Indonesia serves about 2 million customers in Indonesia. It does this with the help of a large network of about 11,000 employees and professional marketers who work in more than 30 marketing offices.
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PT Paragon Technology and Innovation
PT Paragon Technology and Innovation is one of the biggest companies in Indonesia that makes cosmetics. It owns a number of well-known beauty brands, such as Wardah, Emina, and Make Over. Since it started in 1985, the company has made more than 95,000,000 products.
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Tips for Developing a B2C Business
There are a number of tips that can be used to develop B2C, depending on the business. Here are just a few:
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Providing a pleasant shopping experience
B2C entrepreneurs often forget what they learned from this. If you have a good time shopping, it will leave a good impression. So, this marketing strategy could get people to buy the next thing they need. If a product makes a good impression, it’s more likely that it will be recommended to new customers.
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Understanding the consumer habits
From one time period to the next, you can see how people act. Depending on the demographics of the target market, the behavior may be different.
For example, the millennial generation tends to pay attention to what other buyers have said about a product, while the Z generation is more careful and compares the price of a product at different stores.
Because people have different habits, they need different plans.
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Creating contests and giveaway
One tip for building a B2C business that business owners could use is to hold contests and give things away. The contest doesn’t have to be huge. Instead, it can be held as an event. Companies can also spread the word about the contest through blogs or social media.
Care should be taken with the contest and the giveaway. Make sure that the company will benefit enough from the contest and the prizes. At least, it might make more people aware of the product’s brand.
In general, we can say that B2C is a business model because the transaction happens directly between the company and the customer. A B2C business can be run by anyone, even MSMEs.
