About 81% of consumers in the US say they plan to buy from direct-to-consumer (DTC) brands by 2023.
Customers are now increasingly heading online for everyday interactions and transactions, ranging from purchasing groceries to booking flights. Bypassing the intermediaries helps consumers enjoy more personal, meaningful connections with brands.
Brands can benefit from cutting down on middlemen retailers, wholesalers, distributors and advertisers, to directly connect with consumers. Given that dealing with big retailers can sometimes prove to be a barrier to entry, businesses, especially startups, can benefit from engaging directly with consumers.
Similarly, brands have direct control over their brand image and their CX, owing to which marketers can also gain a better understanding of their target audience. On the contrary, exploring a DTC strategy can add certain marketing and distribution-related business costs. Brands will also have to focus on creating an authentic brand and adopting a digital-first mind-set to establish a strong online presence.
[5 minute read]