Thereâs no debating the rise of direct-to-consumer (DTC) brands. From Dollar Shave Clubâstill gaining subscribers at a rate of 10% a yearâto menâs wellness brand Hims and better beverages from Dirty Lemon, DTC is a rapidly-growing sector with immense potential, and a recent study found that 33% of US consumers plan to do at least 40% of their shopping from DTC brands in the next five years.
The brilliance of DTC is that it cuts out the middleman. Removing the retailer from the equation gives brands access to a wealth of very targeted data on their product and consumerâmaking the transition easier should they eventually move into mainstream retailâand enables them to build longstanding direct relationships with their consumers.
But this will only get you so far. In an increasingly saturated market, DTC brands can no longer rely on their business model alone. Thereâs a growing recognition of the importance of brand (rather than tech) in DTC to demonstrate a point of difference, and the most future-focused brands understand that offline is more important than ever.