Direct to consumer (DTC) isn’t just for retailers – if you’re selling anything today, you’ve no doubt got your eyes on DTC trends and technologies as innovative brands are booming – creating, marketing, selling, and shipping their products themselves, without a middleman.
Consumers of DTC products are among the savviest around, which means DTC sellers must continually up their game in creative ways to stay top of mind across multiple channels.
These e-commerce brands are known to be willing to experiment to do just that, and we’ve seen everything from product tests across platforms like Instagram and Snapchat, to enhanced product lines, to pop-up shops as part of ongoing efforts to increase their market share.
So what’s next? Whether you have the next great idea, are trying to grow your own enterprise, or are a retailer or marketer, keeping an eye on these DTC trends will come in handy.
For whom the bell doesn’t toll: Brick and mortar retail enhances the online shopping experience
Though each time we click over to LinkedIn it appears that another retailer is shutting down physical locations, don’t ring the death knell for brick and mortar quite yet.
While big box might not always be the answer, pop-up shops allow brands to have a physical presence that enhances their online efforts. For some retailers like Sephora who have nailed their online CX, expanding brick and mortar locations is required to meet customer demand.
Having an in-store experience that allows DTC brands to further showcase their goods to customers has proven to be a boon. While nay-sayers were declaring the demise of the in-store shopping experience, D2C leaders were busy reinventing retail, and physical locations play a big part.
Howdy, partner: DTC trends lean toward collaboration
- Along the same lines of in-store experiences for brands in the digitally native vertical brand (DNVB) sphere, partnerships between existing big-box stores and DTC product lines are booming.
- Just as we’ve seen several home goods and personal care product lines turn up in the aisles of mass retailers, it’s likely that this model of marketing will continue to ramp up across all segments.
- The blending of online and offline shopping is particularly ideal for those customers who still have inherent skepticism of brands they don’t immediately recognize. It allows them to shop in-person at a store they already trust and see the products they may have only scrolled past in ads across social media.
- Experiential retail helps cement connections with brands for buyers – once they’ve seen the items in person, it boosts the likelihood of a quick purchase online when time doesn’t allow for running out to a store.
Up, up, and away: DTC brands scaling up thanks to mad customer loyalty
Scaling up and diversifying product offerings is one of the DTC trends that brands are employing to increase sales and expand their customer bases.
While many of the most lauded DTC brands began with the idea of creating a single, exclusive product, they now see power in offering new products to complement their lines, or as sales of core items level off.
Building on popular products as the brand takes off allows companies to cultivate loyal customers who become willing to advocate for their core product, while also compelling them to come back for additional items.
This process enhances consumer confidence and brand equity built from initial purchases. Not only are sales boosted, the overall customer experience is augmented when crafting entire product lines that buyers believe in.
The doctor is in…and so is the wellness consultant: DTC trends include targeting healthcare
One of the DTC trends that’s really disrupting status quo is within the realm of healthcare. Amazon clearly saw tremendous opportunity in this arena, and introduced their prescription delivery service, PillPack in 2018. Then, capitalizing on their success, in 2019 they introduced Amazon Care, targeting the direct to consumer telehealth industry for their employees.
As always, it’s the convenience factor that’s responsible for driving healthcare brands into the DTC space. Offering a streamlined approach to getting prescriptions (no more waiting in lines at the pharmacy) and appointments means more time for the end-consumer.
Personal wellness is also seeing a tremendous surge in D2C trends, with the average consumer spending more than $100 a month on wellness and supplements.
Here’s a breakdown of some of those expenditures:
- Beauty and anti-aging: $1 trillion
- Nutrition/weight loss/healthy eating: $574 billion
- Fitness: $446 billion
- Workplace wellness: $41 billion
As longstanding brands see D2C models like Peloton emerge and succeed, you can bet that this DTC trend will only be experiencing further growth.
Direct to consumer is here to stay
While fads come and go, when it comes to DTC trends, the underlying reasons for the tremendous growth remain static: At the end of the day, people want convenience, and they want to trust the brands they’re doing business with.
By offering the services, goods, and products that consumers want and need – in the simplest manner possible – brands are endearing themselves to customers, who will in turn reward them with loyalty.
