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Leaning into festival culture helps Forever 21 connect with Gen Z consumers. Abercrombie & Fitch uses generative AI to speed up the product design process. And Solo Brands embraces the changing definition of the D2C model.

CPG digital ad spending hits $48.79 billion in 2024: Its strength is driven by D2C strategies and increased search advertising.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss what established brands have to gain by going D2C, the ways digitally native brands sell in brick-and-mortar stores, and how brands are maintaining a digitally native 鈥渋dentity鈥� for marketing purposes while also going wholesale. Then, for "Pop-Up Rankings," we rank the the digital natives that are primed for success and the ones that need to up their game. Join our analyst Sara Lebow as she hosts vice president of content Suzy Davidkhanian and president of SageBerry Consulting and author of "Remarkable Retail" Steve Dennis.

Kennedy Jr. to ban pharma direct-to-consumer advertising. A pharma ad deduction ban also could generate new revenues for the cost-cutting administration. Banning advertising tax deductions for pharma could generate $1.5 billion to $1.7 billion in federal tax revenues, according to Campaign for Sustainable Rx Pricing鈥檚 ad spending analysis of 10 leading pharma companies.

The initiative includes a Nike shop-in-shop concept, reflecting Nike's ongoing pivot away from its direct-to-consumer push of recent years. The rotating concept is designed to drive repeat visits as featured brands change. "It's not just a clever name, it is going to rotate," said our analyst Zak Stambor. "Interesting to see them go with Nike first.

The FluMist nasal spray will be available for direct-to-consumer order and delivery at AstraZeneca鈥檚 FluMist Home website. Why it matters: Medication adherence can improve with increased convenience and accessible options for patients. Self-injections and at-home nasal spray options, with education and support, can eliminate travel barriers and the stress of doctor office visits.

Established brands are beating digital natives at their own D2C game. As marketplace and wholesale opportunities obfuscate what it means to sell D2C, brands need to keep up with both their retail and marketing playbooks鈥攐r risk falling behind.

The years of high double-digit growth for US direct-to-consumer (D2C) ecommerce sales have ended.

Digitally native vertical brands (DNVBs) have a long way to go to catch up to established brands. While established brands will make up $134.55 billion in D2C ecommerce sales in 2023, digitally native brands will make up just $34.84 billion, according to our March 2023 forecast.

After boosting the D2C model over the last decade, digitally native vertical brands (DNVBs) face a slowing market, with sales growth declining every year through the end of our forecast period in 2028. That means acquiring customers and revenue can鈥檛 solely be done through online channels such as social media, as DNVBs have relied on in the past. Here are three ways DNVBs can continue the momentum of their digital buzz.

Nike鈥檚 close connections to sports and sneaker culture keep it on the top of Gen Z鈥檚 list of favorite brands while its cutting-edge sneaker technology makes the brand a must-have for runners. But Nike must use a mix of D2C and wholesale commerce if it wants to defend its title from the competition.

Embracing mobile gives consumers access to a branded experience both online and in-store, while in-store technologies bring the digital world into the physical. To cater to shoppers no matter where or how they shop, brands should also make sure they鈥檙e balancing in-store and online rewards as well as D2C and wholesale commerce.

Whether you鈥檙e an established brand like Wendy鈥檚 or a young D2C building an audience, understanding the right mix between organic and paid social is key, especially as the line between the two blurs. 鈥淚 think paid is planned paid, and organic has opportunistic pay that could go along with it,鈥� said Jimmy Bennett, vice president and global head of brand engagements and partnerships at Wendy鈥檚.

Thursday Night Football shows viewership metrics don鈥檛 say it all: Amazon鈥檚 Black Friday audience was far lower than expected, but DTC opportunities drove brand excitement.

Tapestry brings its D2C and wholesale teams together to create a consistent brand experience across channels, while Hollister enables teens to fill their carts and send to a parent for purchase. Instacart and eBay find ways to offer customers more value.

For August, a digitally native direct-to-consumer brand of period care products, TikTok gives more than it takes down. For example, in January 2020, its launch video was immediately removed by the platform. 鈥淚 still get videos taken down for what the app believes is graphic content,鈥� said August co-founder Nadya Okamoto. Still, Okamoto credits TikTok for helping her cultivate a community of nearly 4.5 million followers across her personal and brand TikTok accounts, as well as allowing her to open a dialogue for authentic marketing.

First-party retail ecommerce sales will lag the average through 2029, while D2C sales will occupy the middle ground. Amazon will account for nearly 70% of US online marketplace sales. But specialty retailers, including Best Buy, Lowe鈥檚, and Ulta Beauty, are launching their own marketplaces to enhance their value to consumers and brands鈥攁nd potentially challenge Amazon鈥檚 dominance.

Brands can also seek to collaborate more closely with retailers on exclusive, lower-priced products and enhance customer engagement through direct-to-consumer (D2C) channels and value-oriented subscription offerings. Innovation is expanding private label鈥檚 share of shopping baskets. Retailers look to cash in on white space opportunities.

New healthcare and pharma D2C business ventures will emerge in 2025. They鈥檒l join a cohort of established and nontraditional industry players that have recently entered the D2C healthcare market. The new model aims to reach more customers while generating revenues through an alternative sales channel. Some examples of the sector鈥檚 D2C push include:. Drug developers, including Eli Lilly and Pfizer.