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But amid ongoing business challenges, more D2C brands have been willing to give the massive marketplace a shot鈥攊ncluding traditional, vertically integrated brands like Gap and Victoria鈥檚 Secret, as well as digital natives like sneaker brand Allbirds and swimwear label Cupshe. How should fashion brands and retailers approach third-party sites?

The opportunity for Talkspace: The company has been pivoting away from direct-to-consumer mental healthcare as patients struggle to pay for therapy out-of-pocket. Talkspace is now contracting with more health insurers to make its services more affordable.

As that process plays out and legacy broadcast channels like ESPN move from the cable and satellite ecosystem to a D2C streaming model, sports fans will ditch their cable bundles for streaming services. That migration of viewership could be the final blow for the legacy pay TV business, which in recent years has been held together by live sports. The future of streaming media is ad-supported.

Direct-to-consumer (D2C) basics retailer Everlane is cutting 17% of its corporate employees, D2C athletics brand Gymshark is laying off more than 7% of its staff, and subscription apparel retailer Stitch Fix is reducing its salaried headcount by 20%.

The D2C play: Chewy, one of the fastest-growing large ecommerce companies in the US, will grow 11.0% this year. Other D2C brands like Bark and The Farmer鈥檚 Dog have gained popularity. 鈥淭hese smaller brands can really find their place by doing a lot of personalization, which I think works much better online,鈥� said Davidkhanian.

Creators can now go D2C or OTT. Sports teams and media companies have teams helping get streaming platforms off the ground. But creators are launching their own platforms. Dropout from College Humor and 2nd Try from The Try Guys offer fans a way to subscribe to creator content directly.

The definition of D2C is changing. Simeon Siegel, managing director and senior analyst at BMO Capital Markets, said in a Shoptalk panel that D2C is not a business model, but a strategy. Digitally native brands like Warby Parker and Allbirds created buzz for disrupting their respective industries. Now, they鈥檙e struggling to scale their businesses because they didn鈥檛 develop a multichannel approach.

D2C ecommerce sales were up 12.9% YoY, according to our March 2023 forecast. Better value for the price of a product is the No. 1 reason that US adults buy from D2C companies, per May 2023 data from SurveyMonkey. It鈥檚 likely that 2024 will see more of the same.

Direct-to-consumer brands should use value as a differentiator. The key stat: 56% of consumers worldwide say that a better price is the top way to encourage them to buy directly from brands, per the report. Free delivery, fast and convenient delivery, free returns, and loyalty programs round out the top five factors that encourage consumers to shop with brands directly.

Though digital native D2C brands like Allbirds and Warby Parker exploded onto the scene in the 2010s, they鈥檝e struggled to keep up momentum, often losing share to more established brands. This year, retail sales from digitally native brands will account for less than a quarter (24.3%) of D2C sales, per our forecast.

Direct-to-consumer pharma advertising in the US鈥攚hich is only one of two countries, along with New Zealand, allowed to advertise drugs this way鈥攈as resulted in larger pharma ad shares. Tough regulations hold back pharma鈥檚 ad spending. Canada鈥檚 Food and Drugs Act restricts direct-to-consumer ads.

Non-endemic advertising is also attractive to D2C brands that want access to the eyeballs of a national retail network without having to fork over a chunk of its profits to the platform. How do I get started with non-endemic advertising? The first step is to research the retailers themselves and their shopper profiles. Do they match up to who you鈥檙e looking for as a customer?

Today, in other news, just the one story, Big Pharma companies going direct to consumer. (18:07):. Story one, Pfizer and Eli Lilly, two Big Pharma companies are going D2C. The first story here, Rajiv, is Pfizer.

This brick-and-mortar expansion is a good way to lean more into direct-to-consumer (D2C) avenues and increase margins in a period when D2C have struggled to increase sales following explosive pandemic growth, our analyst Blake Droesch said. Listen to the full episode. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Retailers would be wise to take advantage of their customers鈥� loyalty, especially amid the latest wave of popular D2C beauty brands. 鈥淭here [are so many beauty specialists, online specialists offering the same thing, so you really need to sort of work on that loyalty with your customers,鈥� said Perkins. Listen to the full episode. This was originally featured in the Retail Daily newsletter.

In addition, Max, Peacock, and Paramount+ have doubled down on sports rights, while ESPN is pivoting from a cable network to a D2C streaming service. All this is driving a surge in CTV ad spending, especially since live sports content commands loyal viewership and high ad rates. What does this mean for marketers, media companies, and distributors? The TV ship has sailed.

Why it鈥檚 worth watching: Retail and tech giants are more likely than D2C healthcare and telehealth companies to disrupt health systems鈥� operations. We think there are two connecting factors explaining this:. 1. D2C and telehealth-focused business models aren鈥檛 intimidating hospitals.

The news: Disney's direct-to-consumer streaming platforms, including Disney+, Hulu, and ESPN+, made notable strides in Q1, per the company鈥檚 Tuesday earnings report. The combined losses for these services dramatically narrowed to just $18 million, compared with a $659 million loss in the same period last year.

Report: D2C Brands 2022. Article: TikTok will drive social commerce growth in 2023. Article: 5 ways influencer marketing is changing. Methodology: Estimates are based on the analysis of survey and traffic data from other research firms, historical consumer adoption trends, company releases and demographic adoption trends.

D2C telehealth companies are the latest to erode privacy. Yesterday鈥檚 Chart of the Day: Social rally.

Walmart offloads Bonobos as it shifts away from D2C ecommerce. Despite Amazon鈥檚 cost cutting, Jassy maintains commitment to innovation. Walmart struggles to find an urban format that works. Yesterday鈥檚 Chart of the Day: When life gives you Lemon8.

Many digitally native D2C brands like Peloton are struggling to recapture the explosive growth they saw in their early years. These brands will make up less than a quarter of US D2C ecommerce sales this year, per our March 2023 forecast. This has led them to join with more established retailers to reach customers across more channels.

Amazon got into the direct-to-consumer (D2C) virtual care space in November 2022 with Amazon Clinic, a text-based telehealth service. The challenges: Amazon Pharmacy鈥檚 November 2020 launch caused a great deal of apprehension across the healthcare industry. But major players have since changed their game plans, new entrants have emerged, and Amazon Pharmacy didn鈥檛 cause the disruption many feared.

Even as creators work to diversify revenue streams and go D2C, brand deals rule the creator economy, which is good news for advertisers. Use this chart:. Adjust creator marketing strategies to better align with diversification of creator revenue streams. Understand creator priorities. Demonstrate the growth of the creator economy, and justify higher budgets for these campaigns. More like this:.

Delivery apps, quick-service restaurants (QSRs), D2C brands, and media platforms all offer subscriptions that vie for a share of consumers鈥� budgets. This has caused subscription fatigue for many people. The long-term outlook is murky, particularly amid economic uncertainty.