From D2C Inc. to P2C: Considering the Strengths of Personal Brands Through Domestic Success Stories

When selling your company's products, leveraging ambassadors and influencers while aiming to maximize profits through D2C Inc. Such strategies may already be common practices within many companies. Amidst this, a further evolved approach called "P2C" has recently been gaining attention. We examine the strengths of P2C and the reasons for its attention, incorporating representative domestic success stories.

Influencer marketing is mainstream in the SNS era

D2C Inc. (Direct to Consumer Inc.) refers to a business model where manufacturers sell products directly to consumers via their own e-commerce sites or social media, bypassing retailers and distributors. D2C Inc. brands are particularly growing in industries like apparel and beauty. The rise of D2C Inc. is driven by factors such as the proliferation of e-commerce sites and the pandemic, which increased online shoppers.

Furthermore, the widespread use of SNS has made it easier to communicate with consumers, laying the groundwork for D2C Inc. expansion. Social media allows companies to discern what users want and understand their needs, which can then be leveraged for product and service development. Furthermore, effective use of social media can boost brand awareness and stimulate purchasing desire without relying on mass media advertising. Influencers with large followings wield significant influence, and "influencer marketing"—where influencers use their own social media to introduce a company's products or services—is considered a highly compatible approach with D2C Inc.

On the other hand, P2C (Person to Consumer) is considered a business model derived from D2C Inc. Unlike influencers promoting products commissioned by companies, P2C involves individuals creating and producing their own original products or services, then directly marketing and selling them. In essence, while D2C Inc. means "Direct-to-Consumer" (company to consumer), P2C means "Person-to-Consumer" (individual to consumer). Particularly in the apparel and beauty industries, where D2C Inc. has been well-established, P2C examples are increasing. This is because the product and the model's image are directly linked, making it easier to drive purchases.

The "Image-Driven Consumption Era" Led by P2C Brand Influencers

As introduced in the previous chapter, the rise of social media is one factor driving the shift from D2C Inc. to P2C. The emergence of social media gave birth to influential individual accounts, known as influencers, whose reach sometimes surpasses that of corporations or mass media.

Furthermore, the recent shift in consumption trends from the past focus on "goods and experiences" to "meaningful consumption" is also cited as a factor driving support for P2C brands.

Meaning-driven consumption goes beyond simply owning things or gaining experiences (things) through ownership. It means that the "meaning" an experience gained from purchasing a product or service brings to the individual determines consumption trends. For the younger generation living in this era of meaning-driven consumption, personal brands that directly reflect an influencer's philosophy bring meaning through purchase – meaning like resonating with or supporting that philosophy. Furthermore, today's young generation is said to harbor an aversion to overly "manufactured" advertising and tends to resonate more with the authentic stories of creators. Therefore, using social media to convey the creator's vision also helps gain their trust.

For example, sharing the entire process from product planning to manufacturing on social media allows the meaning and story behind the product to be conveyed. Essentially, every aspect of an influencer's activity becomes brand promotion. Other benefits include lower advertising costs since promotion primarily relies on social media, and the ability to estimate and secure potential customers and sales volume based on follower counts.

Now, let's look at three successful P2C cases featuring domestic influencers.

Case Study: Apparel Brand Launched by a YouTuber

YouTubers have risen to rank among children's top "dream jobs." Among them, an apparel brand launched in 2019 by a popular YouTuber with over 4 million subscribers stands out as a successful P2C case. Recently, collaborating with a major e-commerce mall, they achieved sales of approximately 600 million yen in just one week.
The reason for such impressive sales figures is not just the sheer number of subscribers. It's largely because the YouTuber themselves directly communicated the brand's concept and their dedication to product development to their followers through their own channel.

Examples of Original Brands by Fashion Influencers

Another well-known example involves a fashion influencer who uses his blog, YouTube channel, paid newsletter, and online community to explain men's fashion, and who has launched his own original brand.
The defining feature of this brand is that the influencer's activities directly shape the brand image and serve as product promotion. Explaining fashion points and introducing the original brand as recommended items effectively drives product appeal.

Examples of Cosmetic Brands by Fashion Models

In the beauty sector, a notable example is a cosmetics brand produced by an influencer who is a popular YouTuber among young women and also works as a fashion model. The influencer personally developed the brand concept and fully oversaw the design and texture of the product packaging. Beyond her own posts, she had friends and acquaintances try the products and share their experiences on social media. This approach effectively boosted product and brand awareness through social media, making it an ideal P2C success story.

While the above are representative examples, it's noteworthy that none of these products are priced in the 100-yen range; each item is set at a selling price that allows for a reasonable profit margin. The strength of influencers lies in their ability to strongly appeal to specific segments defined by age, gender, preferences, etc. Therefore, a sales strategy that considers this is considered the key to success. Not every product will succeed through P2C; it is crucial to set the sales price, development costs, and manufacturing costs based on projected sales volume.

The role expected of companies in P2C

Traditionally, influencer-centric business models primarily involved companies commissioning influencers—who already possessed influence—to promote their products, similar to D2C Inc. brands. However, with the rise of P2C, we may increasingly see the opposite dynamic: companies supporting influencers in promoting and selling their own brands or products.

Indeed, companies with D2C Inc. experience are now launching businesses that leverage their accumulated knowledge and expertise to support influencers wanting to build their own brands from the ground up. By utilizing the influencer's communication power and providing comprehensive support—from planning and development, manufacturing, and branding to sales and logistics—they aim to achieve monetization.

Additionally, major e-commerce sites have held auditions to recruit influencers wanting to launch their own personal brands. Projects like this, where influencers collaborate with popular brands and receive support to manufacture and sell their ideal products even with zero experience or knowledge, have generated significant buzz.

In essence, individuals build their brands around personal philosophies and worldviews, while companies support the development of products and services based on those concepts. An era where this P2C business model becomes commonplace may be approaching.

Post-pandemic, P2C is evolving more broadly and progressively

Previously, P2C business might have been strongly associated with "Instagrammers and YouTubers." However, this business model—where individuals produce, communicate, and deliver directly to consumers—is not limited to a select few; it can be found in everyday contexts.

For example, during the pandemic when restaurants nationwide closed simultaneously, a Facebook group called "COVID Support: Special Circumstances Product Information Group" gained attention. It connected producers and sellers who were unable to ship their agricultural products and seafood to consumers directly at low prices. This mechanism not only reduced food loss and supported producers struggling during the pandemic but also offered significant benefits to consumers by providing access to high-quality products at affordable prices.

Such examples could be considered a broad form of P2C, where producers deliver goods directly to consumers, potentially linking to "meaningful consumption" through social contribution. New business models incorporating P2C principles will likely continue emerging across diverse fields, driven by changing times and technological advancements.

Fundamentally, value propositions originating from individuals can be seen as a universal approach. For example, many people likely recall childhood experiences like wanting a handmade pouch because a friend had one, or a brand becoming popular because the class fashion leader used it. P2C could be seen as an extension of such desires. Rather than focusing solely on the surface-level tactic of "influencers launching brands," looking at the fundamental essence underlying this approach may hold the key to creating new "〇2〇 models" that further evolve D2C Inc. and P2C.

While P2C resembles D2C Inc. in that it involves direct contact between sellers and buyers without retail or distribution channels, the key difference is that D2C Inc. is driven by companies, whereas P2C is driven by individuals. Consequently, the worldview and communication power of the central influencer become even more crucial. The P2C business model, resonating with today's consumers in this era of "meaningful consumption," is likely to gain further momentum. Furthermore, focusing on personal brands is considered useful for anticipating new "〇2〇 models" in the future.