What led to the rise and success of so many direct to consumer brands and how can legacy brands leverage some of the same strategies to defend their market share?
Building a brand, while still no small task, is a lot simpler these days. Many brands have decided to bypass traditional retail channels and third-party resellers to establish their own customer relationships. Going directly to consumers is not exactly a new idea. Mail order and catalog companies have been doing it for generations. But the web and digital technologies have taken this strategy to a whole new level. What started as a bold experiment by a few rogue players has now ballooned into a rapidly growing consumer offering.
Two interesting stats from eMarketer give us a glimpse into how things are changing:
- 40% of US internet users expect direct to consumer brands to account for at least 40% of their purchases within the next five years.
- The total amount of US time spent on a selection of 25 direct to consumer brands’ websites has doubled over the past two years, from 40 million minutes in October 2016 to 82 million minutes in October 2018.
Our own Nich Weinheimer, Kenshoo Vice President of Ecommerce, delves deep into this topic in a new article just published in Internet Retailer. In it, he explores the critical factors that led to the recent surge in direct to consumer brands’ success. But it’s not all bad news for legacy brands. He also gives marketers practical, actionable advice on how to learn from these upstarts and protect market share. One of the linchpins in the strategy he recommends Amazon.
Read the full article in Internet Retailer to get the details on the recent direct to consumer disruption and how legacy brands can fight back. And to learn more about how Kenshoo Ecommerce can help you with your own DTC strategy, contact us for a demo today!
Read the full article in Internet Retailer