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Direct to Consumer in Retail - Thematic Research

Direct to Consumer in Retail - Thematic Research

  • March 2021
  • 33 pages
  • ID: 6039653
  • Format: PDF
  • GlobalData


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Direct to Consumer in Retail - Thematic Research

The direct-to-consumer (DTC) busines model is a relatively novel concept in retail that has been popularised by brands such as Dollar Shave Club, Bonobos and Glossier.The model has gained popularity among various retailers selling easy-to-ship products such as skincare, makeup and fashion, and has even been adopted by retailers selling big-ticket items such as furniture.

The DTC business model has several advantages including: less dependence on third parties, fewer contract negotiations, ability to collate consumer data, a better and more holistic understanding of customer journey among many others; but the overarching benefit of such a model is that it gives retailers enhanced control over their business operations.The key benefits associated with the DTC model, therefore make it appealing to both well-established and upcoming brands in the retail industry.

The report goes on to provide an overview of the DTC model, the players in the DTC market, the trends (including technology trends, macroeconomic trends, industry trends and regulatory trends), industry analysis (through the use of key use cases) and outlines companies engaging in DTC frameowkrs and mergers and acquisitions associated with the DTC theme.

Key Highlights
- COVID-19 has significantly impacted the retail industry, specifically for retailers trading in product categories deemed non-essential such as clothing, footwear, jewellery and electronics. The unprecedented store closures due to nationwide lockdowns have contributed significantly to retailers’ woes and placed significant pressure on retailers to re-strategize and restructure their businesses to adhere to the trading climate brought about by the pandemic.
- There are many advantages for embracing a DTC business model, specifically a DTC channel permits retailers to focus on a direct customer relationship and thereby provides a more personal shopping experience through the collation of shopper data, improves product margins while also providing more opportunities for a retailer or brand to explore the manner and method of selling.
- With an abundance of information about various products available instantly to consumers, retailers are under great pressure to provide an experience that is unique to each customer as a tactic to appeal to consumers and ensure loyalty and engagement with retailer.
- Personalisation and frictionless shopping are becoming increasingly important to consumers. The goal of personalisation within retail is to make certain that both physical stores and online channels cater to the distinct and differing needs of retailers’ shopper base in terms of various parameters. While frictionless shopping relates to the creation of a seamless shopping process by decreasing the time and hassle associated with buying products. With an abundance of competition within the retail space and consumers appreciating convenience and ease, its pivotal for retailers to enhance both personalisation and ease of shopping.

- The analyst provides insight into the increasingly popular DTC business framework within the retail sector.
- The report provides an overview of the DTC business model, calls out the players who are leading in the DTC space, while also highlighting technology, macroeconomic, industry and regulatory trends set to impact the retail industry over the next 12 to 24 months
- The report goes on to highlight how the DTC concept is being utilised 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.

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Direct-to-Consumer in Retail - Thematic Research

  • $ 1950
  • March 2021
  • 33 pages

Direct-to-Consumer in Retail - Thematic Research Summary Direct-to-consumer (DTC) refers to the promotion and sale of products directly from a producer or manufacturer to target customers, bypassing ...

  • World
  • Direct-To-Retail
  • Industry analysis
  • Online Expenditure
  • Online Retail Sales


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