DTC product development

Develop a DTC product by defining a customer need, testing the proposed solution with intended buyers, and checking whether the finished item can be produced and sold on workable terms. A promising idea, a useful prototype and a viable production order answer different questions.

Define the problem

Describe who encounters the problem, what they do now and where that approach falls short. Review customer accounts, support questions, returns and competing options. Include people who chose another product or did not buy. Keep the observed difficulty separate from a requested feature: a request for another size might point to a fit problem, an unclear size guide or the design itself.

Write a brief covering the intended buyer, current alternative, improvement sought and conditions in which the product must work. Name what could weaken the case, such as an expensive component or a need that occurs rarely. This chooses what to develop; deciding which finished items belong in the catalogue is an assortment decision.

Build an evidence base

Before commissioning development work, check whether existing research can answer part of the question. Australian Government data, industry and market reports, trade associations and news articles can provide context. The Australian Bureau of Statistics also offers statistics about people, industries and local areas.

Treat research as an ongoing input rather than a one-off approval step. Record what you set out to learn, what evidence you found and how it changes the product brief, so later decisions can be traced to the customer or market question they address.

Make a version that answers the next question

Use the simplest representation that lets buyers assess the uncertain part. A drawing may show whether they understand a concept. Fit, handling and use usually need a physical sample. Tell participants which parts are functional and which are placeholders.

Give intended buyers a realistic task. Observe before explaining the design, then ask what they expected and what they would use instead. Record difficulties as well as favourable reactions. A prototype session can expose a use problem; it cannot establish sales volume or prove that a production item will perform identically.

Assess hazards before anyone handles a sample. Before supplying the finished product in Australia, check the exact goods for applicable mandatory standards and bans. Buyer observation does not replace product safety or compliance work.

Test more than first impressions

Ask testers to try the product in ways that reflect ordinary use, and consider what happens when it is used incorrectly or repeatedly. A prototype can reveal breakage or use problems early, before decisions about production make changes more costly.

Use feedback to improve the design, then test the changed version where it affects the original question. Keep observations about how people use the item distinct from what they say they like; each provides different evidence about whether the product works as intended.

Connect the design to production

Record the proposed materials, dimensions, components, acceptable variation, contents, packaging and relevant instructions or warnings. Ask suppliers about minimum orders, lead times, samples, quality checks and changes to materials or processes. Identify which approved sample represents the item they would make.

Estimate the cost of the sellable item and the cash required for an order. Keep supplier minimums and likely customer demand separate: a minimum order is a purchasing constraint, not demand evidence. If the economics require removing a feature, check the revised product with buyers.

Check supplier controls and product testing

Compare potential suppliers on price, quality, reliability, sustainability and delivery times. Ask how they control production: relevant checks include regular factory audits, tested raw materials, consistent assembly processes, quality checks and supervised pre-shipment inspections by qualified staff.

A pre-production sample passing a safety test may not be enough to establish that later production goods are safe. Depending on the product, evidence can include reports from reliable independent laboratories, preferably accredited ones, suitable in-house testing, certification, or written supplier evidence with copies of test reports.

Decide whether to supply more

A limited release can expose differences in production, customer understanding and the cost of serving orders. Set its quantity, audience, offer and review point in advance. Describe the product, availability, price and delivery terms accurately. Before supplying a limited release to consumers, check the product's applicable Australian safety requirements.

Read orders alongside availability, audience, questions, use feedback, returns and actual costs. A small sell-out alone does not establish demand for a larger run. Investigate a possible safety issue promptly.

At the review, choose whether to revise, make another bounded check, order more or stop. Record the reason and remaining uncertainty. Increase the production commitment only when the product can be supplied as described, relevant requirements are resolved and the available evidence supports the stock and cash at risk.

Resolve compliance and product claims

Australian mandatory standards apply to certain products, not every product sold in the country. Where a mandatory standard applies, it can set compulsory requirements for performance, composition, manufacture, design, construction, packaging or labelling; supplying goods that do not comply is an offence.

Product safety responsibility applies to businesses supplying consumer products, including manufacturers, importers, distributors and retailers. Testing may also help determine whether a product is covered by a ban or supports claims about matters such as ingredients, environmental impacts, efficiency or health benefits. Keep evidence for claims you plan to make; the ACCC can require businesses to substantiate them.