Retail Dive: Top 6 Direct-To-Consumer Trends for 2022

Jan 26, 2022

(Image Source: Retail Dive)

2021 was a year of growth for the Direct-To-Consumer (DTC) industry, but it also brought with it new challenges. With the pandemic still running rampant worldwide, retailers will have to find new ways to navigate yet another turbulent year. Given the ever-growing competition in the market, it is imperative that retailers keep up with the latest trends. Here are just 6 of them that are worth mentioning:

Deals and Partnerships

A wave of companies went public last year, via initial public offering (IPO), direct listing or de-SAPC transaction. Included in the list were Warby Parker and Allbirds, which are 2 popular DTC darlings. Meanwhile, big names like Supergoop, Beyond Yoga and Sweaty Betty were also inking deals to be acquired last year. Consequently, we can also expect a higher number of exits as DTC brands mature.

Did you know that 59% of shoppers would buy more for free shipping?
Sign up now to unlock all our data-driven reports!

Profit Goal

Even though shoppers are getting used to e-commerce and shopping online, generating stable profit solely online is still a big challenge for DTCs. Many of them, including Warby Parker, Rent the Runway, Lulu’s and Casper’s have struggled around profitability. However, this does not mean that there is a shortage of brands managing their cash flows well. Solo Brands, for instance, reported a net revenue of $2.1 million in the latest quarter. Similarly, activewear brand Vuori has also been profitable since 2017.

Offline Expansion

While DTC brands started out online, many are now looking to expand their physical presence. In addition to being an additional marketing medium, physical stores can help reduce the costs of online advertising for brands. Last year, Allbirds and Fenty were making plans to open more brick-and-mortar stores. Some businesses have also opted for partnerships with retail giants such as Walmart, Target and Nordstrom to diversify their distribution channels.

Wholesale and DTC Balance

Recently, several big brands including Nike, Adidas and Under Armour announced their intentions to increase the ratio of DTC sales. Since the profitability of moving to DTC is often questioned, some brands have opted to partner with traditional retailers for wholesale deals, to boost their physical presence instead. Finding the balance between DTC and wholesale will be a big question for brands to focus on in the next year.

Holding Companies’ Support

Joining a holding company is a favorable next step for many matured DTC brands. This is a win-win deal as brands can access more resources for the next development stage and the umbrella company can also extend its reach to customers and add more income sources in the future. 

iOs Update Adapation

Apple’s iOS 14.5 was launched last year with stricter policies for AppTracking. Apps will need permission to be able to track or access to the device’s advertising identifier. As DTC brands lean heavily on 3rd-party data and online advertising, this is a big challenge in tailoring and monitoring their marketing strategies. To adapt, brands are returning to old-fashioned forms of marketing like SMS, email or print.Source: 6 DTC trends to watch in 2022


For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.

Share this with your network

Also worth your time

Follow us on LinkedIn
Stay connected with us

Track your parcel here

More discoveries

Funding Roundup: Bizongo, Homzmart, Vetted and Others Secured Early-Stage Deals

Aug 05, 2022

How Peak Season 2022 in Europe Might Look Like

Aug 05, 2022

TechCrunch: Shopify Invests $100 Million in a Marketing Automation Startup, Klaviyo

Aug 05, 2022

ITLN: Xpressbees Names Suraj Bangera as Senior Vice President of Cross-Border Business

Aug 04, 2022

Retail Dive: Amazon Launches Same-Day Shipping for Pacsun, GNC, SuperDry, and Diesel Customers

Aug 03, 2022

E-Commerce Logistics Race in Europe: Which Country Performed the Best in Q1 2022?

Aug 02, 2022

Supply Chain Dive: OnTrac and LaserShip Introduce Transcontinental Delivery Service to Prepare for Peak Season

Aug 02, 2022

Alcott Global Podcast: Importance of Supply Chain in Stationery Industry

Aug 01, 2022

Guest Post: 10 Ways Retailers Can Inspire Customers During Peak Season

Aug 01, 2022

Funding Roundup: Early Funding Rounds Secured by Cartona, DealCart and Others

Jul 29, 2022

Vogue: Glossier Launches into Wholesale Partnership with Sephora

Jul 29, 2022

E-Commerce Logistics Race 2022: Canada vs the United States

Jul 28, 2022

Macau Business: DHL Express Names Phil Corcoran as Australia’s Managing Director

Jul 28, 2022

Top E-Commerce Retailers in the United States 2022

Jul 27, 2022

Logistics Manager: InPost Now Has 4000 Parcel Lockers in the UK

Jul 27, 2022

Marketing Interactive: L'Oréal Appoints Kenny Ng as Regional E-Commerce Director

Jul 26, 2022

Guest Post: Why Logistics and Supply Chain Management Is Important

Jul 26, 2022

Guest Post: 7 Customer Retention Metrics That Allow You to Measure Customer Loyalty

Jul 25, 2022

Alcott Global Podcast: Revolutionizing Offshore Logistics

Jul 25, 2022

Guest Post: Top Trends in Logistics Technology to Watch

Jul 22, 2022

Funding Roundup: SupplyPike, Syrius Robotics Raised Series B Funds and More

Jul 22, 2022

Fibre2Fashion: Ceva Logistics Expands to Africa with Spedag Interfreight Acquisition

Jul 22, 2022

TechCrunch: Youtube Partners with Shopify to Boost Social Commerce Offerings

Jul 21, 2022

Top E-Commerce Retailers in Europe 2022

Jul 21, 2022

Guest Post: Essential E-Commerce Marketing Tips for Summer

Jul 20, 2022