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Another part of it is that there are many, many, many more smaller brands that are coming into the market and are starting with direct to consumer.

鈥淎cross the board, we鈥檙e seeing doll sales up 56%,鈥� Harley Finkelstein, president of Shopify, which powers the D2C operation for Mattel, told Insider. And it鈥檚 not just new Barbie dolls that consumers are looking for: Sales of vintage and collectible Barbies are up too, per USA Today.

More Chart of the Day:. 8/1 - Keeping it dynamic. 7/31 - Streaming showdown. 7/28 - Price is key for D2C. 7/27 - Ad channel choices. 7/26 - CTV鈥檚 $15B boost. Note: Time spent with each medium includes multitasking; for example, 1 hour of multitasking on a smartphone while watching TV is counted as 1 hour for smartphone and 1 hour for TV. Figures are rounded to the nearest minute.

That鈥檚 why consumer-obsessed companies like Amazon, retail players, and other D2C firms are increasingly entering the fray with telehealth offerings. This article originally appeared in Insider Intelligence's Digital Health Briefing鈥攁 daily recap of top stories reshaping the healthcare industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client?

Brand execs from Forever 21, Abercrombie & Fitch, and more talk AI, Gen Z, and D2C. Lean on experimentation for measurement success in ad campaigns. Unified ID 2.0 gains momentum as industry giants embrace privacy-focused advertising. Search experts on how AI, changing consumer behaviors, and an influx of digital channels are redefining search advertising.

Malls are evolving, retailers are investing in experiential stores, and direct-to-consumer brands like Allbirds and Brooklinen are expanding their store counts. While the ratio of openings to closing may narrow, consumers continue to find value in physical stores. We expect physical stores will account for 84.2% of retail sales this year, down slightly from 85.3% last year.

Employers, not consumers, will make the difference in 2023: Although Cost Plus Drugs launched with a direct-to-consumer, cash-only model, the company has quickly pivoted to work with PBMs and insurers such as Capital Blue Cross, a Pennsylvania health plan.

Digital natives look for growth: Digitally native direct-to-consumer brands have ramped up brick-and-mortar investment considerably as ecommerce growth slows and customer acquisition costs skyrocket. Both Warby Parker and Allbirds are relying more on physical stores to drive customer awareness, engagement, and sales.

Almost a third (32%) of US adults cite more relevant products as a top reason to purchase from D2C companies, per a May 2023 survey from SurveyMonkey. Nearly a quarter (24%) cite a more personalized shopping experience as a top reason.

B2B buyers are real people, so maintaining a social presence the same way a D2C company might is vital. For WeTransfer, this means working with creators who use the software to bring creative ideas to life, rather than just selling it as a productivity tool. This was originally featured in the eMarketer Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Many industries have diverted funds away from traditional advertising channels and toward direct-to-consumer marketing, where they can avoid dealing with ad exchanges and attempt to maintain loyalty through a potential consumer spending downturn. 42% of survey respondents said they would be spending more on digital advertising next year鈥�50% are planning to cut 鈥渙ffline鈥� ad spending.

Footwear brands鈥攍ike Aldo and Sorel鈥攈ave also turned D2C sales into a high-performance channel. For brands in certain categories, ecommerce is essential. Key to mastering the channel is designing features that make online shopping easy, like free and easy returns, frictionless payment, and rewards for shopping online. How Canada compares.

Direct-to-consumer (D2C) brands鈥攆rom digital health to consumer electronics鈥攚ill follow the leaders and tout their own distinctive features that put customers in control of their data. The message will be diluted. Breaking through the noise will become increasingly difficult as the year drags on and more providers join the chorus.

The play-by-play: Nike has been bouncing between D2C and wholesale retail, struggling to find the right mix. This has given newer brands, like Hoka, an opportunity to muscle in on Nike鈥檚 audience, specifically younger consumers and runners.

鈥淒espite Nike鈥檚 recent focus on D2C, the company is rebuilding its relationship with retail partners like Foot Locker and Dick鈥檚 Sporting Goods, which could signal a larger shift back to wholesale,鈥� said Wolff. Ulta Beauty wins at loyalty.

Returns growth outpaced sales for many online direct-to-consumer brands. Loop, a returns service provider for Shopify merchants, reported a 31% year-over-year increase in returns processed in the five days after Christmas. A perfect storm of factors fueled increased returns during the 2022 holiday season. Shoppers were more price sensitive and less brand loyal in the face of inflation.

But Snap isn鈥檛 a retail company, and the D2C partnerships with Goodr, Princess Polly, and Gobi Cashmere haven鈥檛 been enough to buoy revenues overall. The AI angle: Snap鈥檚 other recent venture is a chatbot called My AI, which rolled out in April. New ad formats were announced yesterday, which would leverage data from conversations with My AI to deliver sponsored links.

So I think just trying to be a huge success solely through D2C is going to be really, really difficult. Blake Droesch:. Yeah. And I think D2C is a model that has worked for a lot of product categories, but in CPG, it's struggled. Even the bigger CPG conglomerates have struggled to develop direct to consumer channels.

Over a third (34%) of enterprise sellers, defined as larger brands, retailers, or parent companies with $5 million or more in annual revenue, say that Amazon is supplemental to their direct-to-consumer website, mainly used for visibility, per Jungle Scout鈥檚 鈥淭he State of the Amazon Seller 2024鈥� report. However, nearly as many (32%) say that Amazon is their main retail channel where most sales occur.

We expect more direct-to-consumer retailers to invest in brick-and-mortar this year, as Warby Parker and Allbirds did in 2022. Other expansions include dollar and discount stores (Dollar General plans to open 1,050 this year) and fast-fashion brands (Primark expanding in the US). But not all brick-and-mortar locations are enjoying this resurgence.

D2C fitness fashion label Gymshark built a composable tech stack using Shopify as its foundation and various vendors to provide services鈥擜lgolia for search, Contentful for its content management system (CMS), React for its front end, and AWS to stitch the components together.

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.

Profitability pressures and the need to reach more consumers efficiently has weakened resistance to selling on the platform, even among D2C brands. Over the past year, Victoria鈥檚 Secret and Gap Inc. both began testing the waters by selling a limited range of goods on Amazon. They have since expanded their selections on their marketplace storefronts.

Companies with D2C channels鈥攂rands, publishers, media networks, and retailers鈥攚ant to leverage that data for targeting, personalization, and attribution. The challenge is that first-party data is often limited in scale, outside of giant walled gardens, and it still needs to be matched with other online and offline data sets in a privacy-compliant way. Data clean rooms.

Even consumer packaged goods (CPG) brands that long relied on wholesale distribution and name-brand recognition to drive sales (rather than direct-to-consumer relationships) are getting in on loyalty programs. General Mills, for instance, launched Good Rewards in July 2022, powered by Fetch Rewards. The program covers dozens of brands and requires uploading images of grocery receipts.