D2C Transformation through Closed Distribution

Since 2023, a leading brand in the white goods sector has initiated a strategic shift to reduce its dependence on traditional retail channels and public discount platforms. There was a need for a scalable alternative that offered more control over pricing and brand positioning. This shift led to a fundamentally new model, centered around Closed User Groups (CUGs). What started as an alternative channel quickly grew into the main driver of online revenue. In 2025, a historic turning point was reached: CUG surpassed the affiliate channel and became the dominant sales model with 41% more revenue.

The challenge

The French market is very price-sensitive. As soon as discounts become publicly visible via affiliates or price comparison sites, it immediately leads to channel conflicts with retailers. The core challenge was to offer the lowest market prices without triggering a price war in the public domain.   

The D2C team's ambition was based on these pillars:

• D2C Acceleration
  Maximizing revenue through the brand's own webshop to improve margins and collect direct customer data. 
• Maintain Price Control
  Offering competitive 'lowest price' guarantees without them being indexed by price comparison sites or retailers. 
• Protect the Brand
  Not compromising premium positioning. 
• Market Penetration
  Unlocking high-value, closed customer segments.

The approach

The French market has a strong tradition of institutional loyalty programs. Major banks and insurers act as trusted gatekeepers. The trend is that consumers increasingly prefer these closed environments for premium purchases, as the exclusivity of the deal is guaranteed there. 

 The brand capitalized on this market mechanism and opted for a 'Closed-Loop' D2C model, built on exclusivity, scale, and control:

• Non-Crawlable pricing
  ‍Discounts are only visible behind a login (e.g., banking environment). This prevents them from being indexed by Google or price comparison sites.  

• High-Volume partnerships
  Collaboration with the largest French financial institutions (insurers and banks). These partners have millions of loyal members but impose extremely high demands on technology and compliance.  

• D2C-first
  ‍All traffic from these partners is directed straight to the brand's own Bosch and Siemens webshops, which stimulates direct sales and provides control over the customer relationship.  

• Local optimization per partner
  ‍In 2024, the barrier of complex partner requirements was overcome. Instead of standard integrations, each collaboration was set up individually. This made it possible to maximize both volume and return on ad spend (ROAS). 

The result

The transformation to a CUG-driven D2C model has provided the brand with a unique competitive advantage. The brand's own webshop has grown into a primary sales channel, with millions of French consumers approaching the brand directly through trusted environments, such as their bank or insurer. At the same time, the brand maintains full control over pricing, allowing for competitive offers without straining relationships with retail partners. Dependence on public discount platforms has significantly decreased, leading to greater strategic autonomy and long-term brand value protection. 

 The shift to CUG marketing in 2025 marks a historic turning point:

• 3600% revenue growth
  ‍from CUG marketing since its inception in 2023. 

• Channel Shift
  ‍Revenue from CUGs surpasses the traditional affiliate channel. 

• 41% more revenue
  ‍from CUG than the affiliate channel in 2025 

• 127% year-on-year growth
  ‍within CUG in 2025 

• Uplifts of 2x to 5x
  ‍during key retail moments, such as Soldes and Black Friday  
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• ‍Average conversion rate
  ‍CUG France: 3.8%. For partner Boursorama (a bank with 5 million customers), this was 4.9%.

Why this works

This approach works because exclusivity and distribution control reinforce each other. By making offers visible only within closed environments, prices remain competitive without pressure from retailers or price comparison sites. At the same time, collaborations with banks and insurers provide direct access to large, loyal target groups, where trust and purchase intent are already present. Because all traffic is directed to the brand's own webshop, the brand maintains full control over data, customer relationships, and conversions. Growth occurs through new, protected channels instead of disrupting existing ones. Not maximum visibility, but maximum control makes the model scalable and sustainable. 

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