The Rise of Direct-to-Consumer Retail: How Brands are Bypassing Traditional Channels and Going Straight to Consumers

In recent years, the rise of online retail has been nothing short of staggering - in fact, it is projected to account for 22% of all sales by 2023. More and more consumers are turning to the web to purchase everything from clothing and electronics to home goods and groceries. For brands, this presents a tantalising opportunity - what if they could take back control of retail to make it more convenient and affordable than their traditional counterparts??

Enter direct-to-consumer (DTC) retail. Technology platforms like SHOPLINE are democratising commerce by enabling brands to reach out to customers without a middleman like retailers and distributors. DTC is, thus, a business model that can be carried out through various channels - in particular, company owned brand.com websites?

In this article, we explore the direct-to-consumer (DTC) retail phenomenon and showcase some brands that have found success using this business model.?

What are some benefits of direct-to-consumer retail?

DTC retail is quite a simple phenomenon - as the name suggests, selling directly to customers. According to a Reprise study, consumers who prefer to engage with DTC brands and buy on their websites do so because they consider consumer brands to be more trusted, authentic and having a wider variety of products. Here are some of the benefits that DTC has? over traditional retail channels:

Control over the customer experience

By selling directly to consumers, merchants can have more control over the customer experience and can ensure that customers have a positive experience with their brand. This can be particularly important for companies that are offering products that are new or innovative, as it allows them to educate their customers about the product and its benefits.

More personalised data

DTC brands are able to collect data on their customers directly, which can be used to inform product development and marketing strategies. Companies better understand their target market and tailor their offerings to meet the needs and preferences of their customers. By creating a more personalised customer journey, customers are more likely to convert and buy in the long term due to this value-add.?

Lower prices

By eliminating intermediaries such as retailers or distributors, DTC merchants can potentially offer their products at lower prices. This can make their products more competitive and can help them to attract more customers. In today’s competitive retail environment, this is a crucial advantage as margins are slim and customers are more price sensitive than ever.?

What are some of the brands that have been successful in direct-to-consumer retail?

Lush

Lush stands out from the crowd by offering unique, handmade products that are not easily found in traditional retail stores like handmade soaps, bath bombs and skincare products. Using the direct-to-consumer model, Lush was able to build a strong brand and a loyal customer base through strong storytelling, ethical sourcing of materials, and a commitment to environmental sustainability. In this way, Lush was able to embrace digital channels such as social media and e-commerce to reach and engage with customers directly, creating a personalised and bespoke experience - creating powerful differentiation from traditional soap and skincare products.?

8 Bit Do

8Bitdo specialises in high-quality, retro-styled gaming controllers and accessories that appeal to a niche market of gamers and nostalgia-seekers. With this specific target market in mind, 8Bitdo has used e-commerce and social media to showcase its products and build a strong brand image. The direct-to-consumer model also enabled them to leverage the nostalgia factor for a more targeted outreach while offering more personalisation by selling custom-made controllers and mods that cater to their customer's specific needs. Thus, 8Bitdo was able to successfully carve a niche in the market where more discerning consumers are reached outside the channels where controllers are traditionally sold.?

Moft

Moft is a company that designs and manufactures innovative and minimalist mobile accessories, such as phone stands and laptop stands. They have been successful in utilising direct-to-consumer retail to directly offer unique, functional and portable products that cater to the needs of customers who are looking for versatile and space-saving solutions. In particular, the brand has an e-commerce and social commerce first approach to retail by emphasising influencer and digital-led marketing efforts. This model has even enabled Moft to use a subscription-based model for some of their products - creating a recurring revenue stream for the brand.

How can SHOPLINE kickstart your brand’s direct-to-consumer journey?

Brands that want to start selling directly to their customers will need a platform to support their efforts - whether it be on their brand.com website, social media platforms, physical retail stores or online marketplaces. SHOPLINE is an omnichannel e-commerce solution with everything you need to do all of these and more in an all-in-one subscription.?

We highly recommend using SHOPLINE to grow and scale your business. It’s easy to use, perfect for beginners, and incredibly affordable.?

Sign up for a 14-day free trial to get started.??

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