Direct to Consumer in Retail – Thematic Research

Direct-to-consumer (DTC) refers to the promotion and sale of products directly from a producer or manufacturer to target customers, bypassing the need for intermediaries such as marketplaces, department stores, or any other third-party retailers. The rise of this model of selling started before the inception of the internet and its democratizing of the tools that traditional business has been using for decades. The DTC model has many advantages, including less dependence on third parties, fewer contract negotiations, fewer limitations on branding and fulfillment, the ability to collect valuable consumer data, the prevention of counterfeiting, and a better end-to-end understanding of the customer journey.

The direct-to-consumer in retail thematic intelligence report assesses how direct-to-consumer can be used in the retail industry. It provides an overview of the current landscape, including technology, regulatory, industry, and macroeconomic trends. The report provides an industry-specific analysis based on GlobalData databases, surveys, and use cases.

Key Trends

The main trends shaping the direct-to-consumer space in the retail industry are classified into four categories: technology trends, macroeconomic trends, industry trends, and regulatory trends.

• Technology trends: The key technology trends impacting the theme are AR, mobile, and 5G network advancement.
• Macroeconomic trends: Some of the key macroeconomic trends explained in the report are growth in mobile spend, growth in online spend, opportunities for DTC amid COVID-19, and security & safety concerns.
• Industry trends: Some of the key industry trends explained in the report are a shift away from physical formats such as department stores, social commerce, subscription-based products, and sustainability.
• Regulatory trends: Data privacy is a part of the regulatory trends impacting direct-to-consumer theme in the retail industry.

For more insights on key trends impacting direct-to-consumer in the retail industry, download a free report sample

Direct-to-Consumer in Retail – Industry Analysis

Various retailers engaged in DTC sales have completed mergers and acquisitions, and partnerships, over the past few years. Many of the retailers had the aim to improve their retail proposition.

Direct-to-Consumer in the retail industry analysis also covers:

• Key use cases
• Timeline

Direct-to-Consumer in Retail - Value Chain Analysis

While traditional retailers rely on intermediaries such as wholesalers, distributors, and retailers to reach customers, DTC players rely solely on company-operated stores, websites, and mobile apps, thereby, completely avoiding any third parties in their value chain. This enables them to have greater control over their products and services. GlobalData’s direct-to-consumer in the retail industry theme is split into three layers: customer engagement interface, fulfillment and processing, and product or service attribute.

Customer engagement interface: The point at which customers interact with a DTC player is known as the customer engagement interface. The customer engagement interface is usually a company-operated website or an application or a store that is designed to be easy to navigate and offers a pleasant shopping experience for the user. The interface also includes social media platforms through which a DTC player engages with its customers. An ideal customer engagement interface includes all the information that a customer would need to purchase a product or service.

Direct-to-Consumer Value Chain

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Leading Companies in the Direct-to-Consumer Theme

Some of the leading companies making their mark within direct-to-consumer in retail theme:

• Amazon
• Apple
• Casper Sleep

To know more about the leading companies associated with the direct-to-consumer theme, download a free report sample

Direct-to-Consumer in Retail Overview

Scope

This report provides:

• Insight into the increasingly popular DTC business framework within the retail sector.
• Overview of the DTC business model, calls out the players who are leading in the DTC space, and highlights technology, macroeconomic, industry, and regulatory trends set to impact the retail industry over the next 12 to 24 months.
• Highlights of how the DTC concept is being utilized by brands and provides specific brand examples while also reviewing mergers and acquisitions and strategic partnerships associated with the DTC theme.

Reasons to Buy

• Provides an overview of the DTC business model, including its origins, advantages, and timeline within the retail market.
• Provides an overview outlining the issues faced by the retail sector as a consequence of COVID-19.
• Gain insight into the players engaging with a DTC business model and identify the leading retailers/brands within this space.
• Better understand the key trends including technology, macroeconomic, regulatory, and industry trends impacting the retail market over the next 12 to 24 months.
• Learn about specific examples of retailers/brands adopting a DTC business model and various DTC-related mergers and acquisitions within the retail space.