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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’s 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.

I think even if, for example, you're a bank and you choose to go more of a utility white label route rather than direct to consumer... And I do think we'll see banks trying out both options. I think bigger ones will go for, let's stick direct to consumer because we have the clout for that. Smaller ones will probably go the utility style route.

Companies with D2C channels—brands, publishers, media networks, and retailers—want 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.

How about creators going direct to consumer and asking for tips essentially? We're in this tipping culture. Has that gained traction recently? Jasmine Enberg:. Yes, it is one of the fastest growing revenue streams for creators, but you also have to remember that these are really small sums.

We define social commerce as transacting basically one click away, meaning they can go to a D2C site or somewhere else to transact. Again, if you think about who can get this right. (09:55):. Also, by the way, the whole point about AI being really expensive, a hundred percent right. Also, this is a great way of getting everybody else out of the market.

So listen to last week's re-imagining retail episode for that, but they had a really strong earnings showing and the company is finding growth while many direct to consumer companies aren't leveraging their store footprint and they're leveraging in-store eyecare in order to stay healthy. Arielle Feger (05:42):.

Gen Z consumers of beauty and skincare products are most attracted to brands for their pricing (48%), samples (46%), and sustainability (44%), according to Bolt. Pricing is a bigger influence for older consumers, cited by 61% of those ages 18 and older.

In this era, we're moving out of this era of tons of D2C and back into marketplaces, or I should say more into marketplaces. I'm going to take our last spice level and our last prediction, if you guys don't mind. I have a prediction as well. This is medium maybe to spicy.

Their latest results from the holiday quarter beat expectations that was led by healthy international growth and a really renewed emphasis on their direct-to-consumer channels, their stores, while cutting back on wholesale expansion.

I will say that there is a notable discrepancy between the approaches of small, independent, maybe D2C type brands and larger more heritage and tradition bound enterprise or legacy brands. If you have several generations of dos and don'ts in your brand guidelines, or you employ multiple creative agencies, you're a lot less likely to let this technology just spit stuff out willy-nilly and deploy it.

Ross, they also announced Disney and therefore ESPN that a direct-to-consumer ESPN streaming service will launch in the fall of next year, 2025. That will include personalization features and also access to sports betting platform, ESPN BET. Obviously there's ESPN+, but that doesn't contain all the content that the traditional cable version of ESPN has. But this new standalone version will.

Chewy in particular, like I don't have the ins and outs of Chewy's business in front of me right now, but they're a D2C that's grown a lot that needs to find other places to grow, and so partnerships are a great way it can do that. Okay. So Becky, you've won over the Sharks. I'll make my pitch now.

So that's why you see a lot of DTC brands as they expand they'll eventually start advertising in linear television. And a lot of the largest tech companies in the world like Amazon and Apple, Facebook are among the largest out-of-home ad spenders each year.

But this started becoming quite apparent in the second half of last year that Chinese brands and manufacturers have basically learned the American D2C playbook, and are running it to great success on Meta's platforms in particular, Susan Li, Meta's CFO, said that they contributed to 10% of revenue overall in the fourth quarter. Which is not nothing. That's real, real growth.

Well, it's that Amazon is becoming a much bigger direct-to-consumer healthcare player. It's now expanding its services for Amazon Clinic, as you mentioned, video and text-based healthcare services. It's got Amazon Pharmacy, it rolled out a discounted RX pass for generic medications. So, it's really playing to the consumer in the consumer's healthcare needs.

Yeah, Victoria's Secret was founded on every 2000s trend that's gauche now, like ultra-thin models, no diversity, and they're also being undercut by D2Cs. Sarah Marzano (02:40):. Yeah, I think it's an interesting move to bring on Super. Savage Fenty famously has been one of the brands that's taken market share away from Victoria's Secret.

And that going to D2C isn't necessarily the best way to achieve growth even when you have this huge, huge built-in audience through influencers. And I think that Amazon is smart by using influencers in this way. It really fits into their objectives when it comes to growing sales of essential goods and CPG products and food and beverage.

So in some cases it could be worse depending on what your need is and that shortage has really been pushing patients to seek other options, whether that's retail health or direct to consumer telehealth, if it's not a serious issue, or urgent care, or in the worst case emergency care. But we're already seeing the impact.

So my first pick is a direct to consumer fashion brand Telfar which is best known for its very highly covetable handbags that are released via drops. So not a regular schedule. You have to be in the know and follow the brand in order to get access to their products.

They're on social, they do direct to consumer, they're in physical retail from the specialty beauty stores like Sephora and Ulta to the big box stores like Target and at Walmart. They have their own stores and they're even on Amazon because they just know that the consumer is looking to buy everywhere and they have to be there and make it as easy to get those products to them as possible. Sara Lebow:.