WHAT IS D2C?

D2C is a type of e-commerce that removes all middlemen, or retailers. Brands that adopt the D2C business model circumvent traditional stores by selling directly to consumers online. This approach streamlines the buying journey and allows brands to retain full control of the manufacturing, marketing, and distribution of their products.

WHY SHOULD MARKETERS CARE?

D2C brands innovate at a rapid pace and excel at creating seamless experiences for consumers. At a time when shopping preferences and expectations are swiftly changing, D2C emphasizes satisfying consumer needs.

 

Not only are D2C brands disrupting the traditional retail landscape and transforming how consumers shop, but they are challenging legacy brands as they gain popularity and market share.

HOW CAN IT HELP YOUR BUSINESS?

The D2C approach can help a brand disrupt a market, rather than be disrupted, in a highly cost-effective way. Through speed, flexibility, and agility, D2C brands build share by selling directly to their target customers.

 

Adopting the D2C model has many advantages, including but not limited to low barriers to market entry, no physical footprint requirement, a favorable cost structure, direct ownership of customer relationships, access to first-party customer and transaction data, and the aptitude for hyper-target marketing.

The Future of Work, with Russ Perry of Design Pickle

For the majority of the U.S. workforce, the past three months have been a complete paradigm shift in what’s considered “business as usual.” Millions of us are, for the first time in our careers, working entirely remotely, and brands across the country are scrambling to establish a “new normal.” But what if your entire workforce was remote to begin with? Marketing Futures spoke with Russ Perry, the founder of Design Pickle, a member of Inc.’s 500 fastest growing companies in 2019, about what it’s like to manage a staff of more than 400, of which only a small handful live and work in the company’s headquarter city of Scottsdale, Arizona. Russ discussed what the first few weeks of the COVID-19 crisis were like for Design Pickle, and shared advice for leaders looking to maintain creativity and camaraderie from afar.

> See all episodes
The Doctor Will Zoom You Now: Telehealth During COVID-19 and Beyond

Prior to the pandemic, adoption of virtual doctor visits was negligible (at just 11%, according to a McKinsey survey). Since social distancing and quarantine, however, those numbers have rocketed to 46 percent, and the comfort and ease both consumers and doctors are finding through telehealth, or telemedicine, indicate that it’s here to stay post-COVID. But the surge in telehealth begs the question: if some vital services like healthcare can be delivered virtually, what other traditionally physical industries may also find themselves delivering via cyberspace? For the moment, telehealth is ruling the space and the resources below discuss its growth, application, and future.

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WHAT IS DIRECT-TO-CONSUMER?

D2C is a type of e-commerce that removes all middlemen, or retailers. Brands that adopt the D2C business model circumvent traditional stores by selling directly to consumers online. This approach streamlines the buying journey and allows brands to retain full control of the manufacturing, marketing, and distribution of their products.

WHY SHOULD MARKETERS CARE?

D2C brands innovate at a rapid pace and excel at creating seamless experiences for consumers. At a time when shopping preferences and expectations are swiftly changing, D2C emphasizes satisfying consumer needs.

 

Not only are D2C brands disrupting the traditional retail landscape and transforming how consumers shop, but they are challenging legacy brands as they gain popularity and market share.

HOW CAN IT HELP YOUR BUSINESS?

The D2C approach can help a brand disrupt a market, rather than be disrupted, in a highly cost-effective way. Through speed, flexibility, and agility, D2C brands build share by selling directly to their target customers.

 

Adopting the D2C model has many advantages, including but not limited to low barriers to market entry, no physical footprint requirement, a favorable cost structure, direct ownership of customer relationships, access to first-party customer and transaction data, and the aptitude for hyper-target marketing.

“Launching as a D2C or e-commerce-centric brand has significant advantages, including being able to rapidly test and optimize your creative and integrate early customer feedback into product revisions. But rapid sales channel diversification is key with rising CPAs on Facebook and Instagram and similar products cropping up in your company’s category.

 

The best digitally native brands will merchandise their early D2C sales results and parlay them into drop-ship relationships with key retailers with hopes of seeing in-store placements over time.”

Mike Grillo

President and Co-Founder

Gravity Products

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into D2C? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

The Disruption of Direct-to-Consumer Brands

ANA. September 2019

Patrick Dolan shared findings from the “IAB 250 Direct Brands to Watch” report, which identified top direct-to-consumer brands that are disrupting their industries and driving positive change in the U.S. consumer economy.

DTC Market Delivers New Opportunities for Traditional Brands

ANA. September 2019

Direct-to-consumer brands put a new and popular spin on delivering products and services — and give traditional brands a run for their money. Chuck Kapelke shed light on this emerging business model and the rise of digitally native “disruptor” brands.

From Kickstarter to Consumer Product Model

ANA. March 2019

With the Gravity Blanket and other products, Gravity has developed a method of product development built to understand how consumers’ expectations are evolving — one that is also extremely cost-effective.

Download Now!

According to LUMA Partners’ recent research “D2C Brand LUMAScape,” there are currently more than 400 D2C companies, and this number is only growing. As more brands circumvent traditional stores by selling directly to consumers online, D2C will continue capturing market share while transforming how consumers shop.

 

To help marketers understand D2C and the threat this emerging economy presents for traditional retail, ANA Marketing Futures spoke with marketers, experts, and early adopters across the industry to get their perspective on D2C. The report summarizes key findings, statistics, trends, and case studies that explain how D2C brands are disrupting businesses, and what this shift means for marketers.

Mike Grillo

President and Co-Founder

Gravity Products

“Launching as a D2C or e-commerce-centric brand has significant advantages, including being able to rapidly test and optimize your creative and integrate early customer feedback into product revisions. But rapid sales channel diversification is key with rising CPAs on Facebook and Instagram and similar products cropping up in your company’s category.

 

The best digitally native brands will merchandise their early D2C sales results and parlay them into drop-ship relationships with key retailers with hopes of seeing in-store placements over time.”

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into D2C? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

The Disruption of Direct-to-Consumer Brands

ANA. September 2019

Patrick Dolan shared findings from the “IAB 250 Direct Brands to Watch” report, which identified top direct-to-consumer brands that are disrupting their industries and driving positive change in the U.S. consumer economy.

DTC Market Delivers New Opportunities for Traditional Brands

ANA. September 2019

Direct-to-consumer brands put a new and popular spin on delivering products and services — and give traditional brands a run for their money. Chuck Kapelke shed light on this emerging business model and the rise of digitally native “disruptor” brands.

From Kickstarter to Consumer Product Model

ANA. March 2019

With the Gravity Blanket and other products, Gravity has developed a method of product development built to understand how consumers’ expectations are evolving — one that is also extremely cost-effective.

Download Now!

According to LUMA Partners’ recent research “D2C Brand LUMAScape,” there are currently more than 400 D2C companies, and this number is only growing. As more brands circumvent traditional stores by selling directly to consumers online, D2C will continue capturing market share while transforming how consumers shop.

 

To help marketers understand D2C and the threat this emerging economy presents for traditional retail, ANA Marketing Futures spoke with marketers, experts, and early adopters across the industry to get their perspective on D2C. The report summarizes key findings, statistics, trends, and case studies that explain how D2C brands are disrupting businesses, and what this shift means for marketers.

About ANA Marketing Futures

Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.

 

ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.

 

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