Direct-To-Consumer
Retail Dive: Top 6 Direct-To-Consumer Trends for 2022
Given the ever-growing competition in the market, it is imperative that direct-to-consumer (DTC) brands keep up with the latest industry trends.
Jan 26, 2022
Emarketer: How D2C Brands Are Disrupting the Retail Industry
According to eMarketer, the US D2C market is flourishing, with sales projected to reach $151.20 billion next year, an increase of 16.9% from 2021.
Dec 29, 2021
Building Customer-Centric Supply Chains in E-Commerce
Learn from Bill Papantoniou, Head of Customer Supply Chain EMENA at Nestlé Purina Petcare, about building a customer-centric supply chain in e-commerce.
Nov 25, 2021
FreightWaves: Google Cloud Partners with Cart.com to Accelerate DTC E-Commerce
Google Cloud partners with Cart.com to accelerate DTC e-commerce growth as well as streamlining Cart.com’s AI and machine learning capabilities.
Nov 01, 2021
Retail Dive: DTC Brand Knix Opens Physical Stores in the US
Direct-to-consumer (DTC) intimate brand Knix looks to open more physical retail stores in the United States after their e-commerce success.
Sep 27, 2021
CNBC: DTC Brands Warby Parker and Allbirds to Open More Retail Stores
Direct-to-consumer (DTC) brands Warby Parker and Allbirds are looking into opening more brick-and-mortar stores after their e-commerce success.
Sep 24, 2021
How Snocks Turned from Amazon Retailer into a Million Dollar DTC Brand
Ever searched for ‘socken’ or ‘socks’ on Amazon? Chances are, you would have heard of the brand Snocks, one of Amazon’s biggest players for some of the bestselling black sneaker socks.
Sep 07, 2021
Business Wire: Beauty Brand Glossier Raises $80 Million to Double Down on its Direct-to-Consumer Success
With this fresh injection in funds, the brand plans to scale its online and offline channels as it moves towards becoming the top destination for beauty discovery in the world.
Jul 15, 2021
The Biggest Direct-to-Consumer Fulfillment Challenges & How to Solve Them
Many direct-to-consumer brands face problems with DTC fulfillment. Here are the top challenges and how you can solve them!
Jul 01, 2021
Reuters: Eyewear Brand Warby Parker Files For U.S. Listing
New York-based eyewear company Warby Parker is preparing for a U.S listing to capitalise on the pandemic-fuelled boom in e-commerce.
Jun 25, 2021
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Direct-to-Consumer Trends
Direct-to-Consumer Model
What is D2C e-commerce? Direct-to-consumer, or DTC, has been in the spotlight in the retail and e-commerce industry over the past year. Direct-to-consumer products are sold directly to consumers, bypassing intermediaries such as wholesalers or retailers Consider the Molson Coors Beverage Company as an example. As the pandemic disrupted its traditional distribution channels, the company pivoted to a direct-to-consumer model through its online store and consequently increased sales by 188% month over month. Some top direct-to-consumer brands include Allbirds, Warby Parker, Gymshark, as well as Nike, Adidas, and Under Armour.
Difference Between DTC and Traditional Retail Strategies
Traditionally, retailers send their products to a wholesaler or distributor, who then delivers them to the final consumer. Some of the disadvantages of such traditional retail strategies include being more vulnerable to supply chain risks, and also not being in control of the end-to-end customer experience. . That is why more retailers are shifting away from traditional retail to selling directly to the consumer, also known as direct-to-consumer. Unlike traditional retailers, selling direct-to-customer allows brands to establish a direct connection with customers, which helps build brand loyalty. Furthermore, a manufacturer will have little to no control over how traditional retailers market and distribute their products. On the other hand, a direct-to-consumer e-commerce business model provides manufacturers control over their sales and marketing efforts and gives them direct access to end-consumers.
Direct-to-Consumer Benefits
There are many benefits to the direct-to-consumer model. First, it gives businesses control over distribution networks. With their efforts and resources focused on one primary distribution channel, businesses can focus on effective scaling while avoiding a lot of overhead. Second, selling direct-to-consumer gives manufacturers visibility of the entire customer journey. This allows brands to understand customer feedback on the product and work on improvements quickly. Manufacturers may also benefit from increased margins by cutting out the middlemen, since there is no wholesaler, retailer, or marketplace involved in the process. Nevertheless, retailers should still look into establishing a multi-channel retail or an omnichannel strategy in the long-term, to diversify risks and capture a larger share of the consumer market.
Direct-to-Consumer Marketing
To be successful in DTC e-commerce, businesses must establish an effective direct-to-consumer marketing strategy to stand out from the competitive DTC landscape. For example, having a robust social media strategy helps to increase brand recognition for DTC brands. Your social media page can become a space for you to share product information and build a DTC community while engaging with your followers. Gymshark’s direct-to-customer marketing strategy, for example, has contributed to its tremendous growth. It has created a community around its gym clothing by collaborating with influencers and organizing live events on Facebook.
