B2B2C

B2B2C, short for Business-to-Business-to-Consumer, represents a multi-tiered business model where a company (the business) sells its products or services to another business (the second business), which then sells these products or services directly to the end consumer. This structure facilitates indirect distribution, market expansion, and specialization. The initial business focuses on manufacturing, wholesaling, or providing a service, while the intermediary business manages customer interaction, marketing, and sales. B2B2C models are prevalent in industries like technology, pharmaceuticals, and consumer packaged goods, optimizing efficiency and reach. They involve strategic partnerships to reach a wider audience and often leverage the existing customer base of the secondary business.

B2B2C meaning with examples

• A software company (the business) develops a project management platform and licenses it to a consulting firm (the second business). The consulting firm integrates the platform into its project management services and offers these services, including the use of the software, to its clients (the consumers). This B2B2C model allows the software company to focus on development while the consulting firm handles customer support and market penetration, thereby increasing the software's customer base.
• A food manufacturer (the business) produces specialized organic baby food, selling it in bulk to a grocery store chain (the second business). The grocery store chain then repackages and sells the baby food to parents (the consumers). This allows the manufacturer to concentrate on production efficiency and large-scale distribution while relying on the store’s established brand recognition and physical locations to reach individual consumers within the consumer market.
• A medical device company (the business) manufactures diagnostic equipment, providing it to hospitals and clinics (the second business). The hospitals and clinics utilize the equipment to perform diagnostic tests and provide results to their patients (the consumers). This B2B2C structure ensures the manufacturer focuses on technological advancement, whilst hospitals deliver patient healthcare, optimizing their specialist abilities in medicine to meet the need of the consumer.
• A virtual reality (VR) content creator (the business) develops educational VR experiences, licensing them to a company that provides VR learning platforms to schools and educational institutions (the second business). Students (the consumers) then use these VR platforms to access the educational content. This model enables specialization in content creation and delivery, allowing tailored learning experiences.
• An insurance provider (the business) offers a specialized insurance product for small businesses, partnering with a payroll processing company (the second business). The payroll company bundles the insurance option with its payroll services, offering them to their business clients (the consumers). This gives the insurance company access to a wider market and leverages a trusted relationship between the payroll company and its clients, thus expanding customer acquisition at scale.