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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.

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.

That means any questionable behavior by Ebb could discourage consumers from subscribing to Headspace and hamper its D2C growth ambitions. Last year, a Belgian man died by suicide after six weeks of chatting with an AI chatbot鈥攖he chatbot encouraged him to do so.

Current CEO Michelle Gass, who arrived at Levi Strauss as president in January 2023 (and became CEO in January), told the Financial Times she aims to 鈥渞ewire the entire business鈥� to build a 鈥渂est-in-class, direct-to-consumer retailer鈥� while also maintaining strong relationships with wholesale partners.

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.

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.

Walgreens recently debuted a D2C telehealth service in which patients can communicate with doctors and nurse practitioners about non-emergent health concerns over text or video. Predictions. Pharma marketers will capitalize on the trend of patients receiving care from retailer pharmacies and websites. They will ramp up their in-store and digital advertising of vaccines and medications.

A tough spot: Nike鈥檚 revenue slide illustrates the scale of the company鈥檚 problems as it struggles to win back market share it lost to competitors like adidas, Hoka, and On Running during its shift to direct-to-consumer (D2C) sales.

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?

Direct-to-consumer models, online marketplaces like Amazon, and traditional, wholesale retail offer opportunities. To compete, retailers should evaluate where they can best position their products, particularly in categories where Amazon is less dominant. Expanding into international markets.

But we also see this as a move to ward off D2C telehealth players who are progressively entering the market. Hackensack Meridian feels strongly enough about the strategy that it鈥檚 partnering with a digital health company that can implement a tech-enabled experience for patients.

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.

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.

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.

Similarly, traditional CPG companies continue to spend heavily on social media to compete with D2C and white-label players. Read the full report, Q3 2024 Ad Spending Forecast and Trends.

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.

鈥淚n today鈥檚 digital age, customers have more choices than ever, making customer loyalty a crucial part of the retail landscape,鈥� said Kacey Sharrett, head of global direct to consumer at GoPro. 鈥淎 strong loyalty program drives repeat business, enhances customer lifetime value, and fosters a connection between buyer and brand.鈥�.

Levi鈥檚 path to growth: Levi鈥檚 decision to potentially offload Dockers is in keeping with the retailer鈥檚 broader strategy of exiting from less profitable segments in favor of focusing on its more lucrative D2C and core denim businesses.

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.

Our take: Kay has to find ways to win over the next generation of consumers, or else risk losing share to newer, direct-to-consumer jewelry companies like Ring Concierge, Mejuri, and Aurate. Its rebrand, coupled with store upgrades, ecommerce investments, and growing selection of trendy jewelry, should help with that goal.

I think at eTail, that conference starts a little bit more around the direct to consumer. So there, I think it's a lot more about the connected experience, the true omnichannel or all channel and how there's commerce everywhere and how to really seize the moment.

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:.

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.

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.