[eMarketer] Direct-to-consumer brands diversify consumer experience to disrupt the retail industry

According to eMarketer’s forecast, US direct-to-consumer (D2C) ecommerce sales will reach $151.20 billion in 2022, an increase of 16.9% compared to this year. And while D2C purchasing will only account for 2.5% of total retail sales in the year ahead, these brands have challenged and successfully disrupted the retail industry by diversifying consumer experience.

Originally, D2C referred to digitally native brands without a physical storefront that sold directly to consumers by website. Many founders of D2C companies say they went to market with the intent to solve a perceived pain point in the marketplace that they personally experienced. Over time, D2C has evolved into a business model with legacy brands, like Nike and The Clorox Company, having D2C components.

Pure-play D2C companies like Peloton, Warby Parker, and HelloFresh, for example, curate every interaction—from marketing to delivery—with customers and share distinct commonalities that have enabled D2Cs to thrive:

Customer acquisition can be expensive for D2Cs. However, the D2C model offers companies control over each product’s marketing.

Because of their direct offerings for customers, each D2C is challenged with convincing customers that it offers something consumers can’t find anywhere else..

Read the full eMarketer article here

www.emarketer.com