Direct-to-consumer (DTC) is a business model of commerce and the fastest growing type of ecommerce. DTC brands most often manufacture their own proprietary products and sell them through a brand website, bypassing distribution chain links and other intermediaries. This means sales and marketing channels are consolidated.
What’s great about direct-to-consumer?
- The brand controls the whole process and can better guide the customer journey.
- The brand also owns all the first-party data and does not rely on reporting from partners, distributors and the like. Marketing is more streamlined and data-driven.
- Communication is more targeted because the brand can reach customers directly.
- Because of the above, the brand image and customer experience are carefully curated.
- All costs are more closely monitored and it’s easier to improve marketing ROI.
- Brand awareness and loyalty are higher as a result of more focused efforts.
Some of the best known DTC brands are Casper, Native, Harry’s, MeUndies, Away.