DIRECT-TO-CONSUMER (DTC)

What Does the Future Hold?

Direct-to-consumer (DTC) brands have taken the retail industry by storm in recent years. By selling directly to consumers online, DTC brands have been able to bypass traditional retail channels and offer more competitive prices, innovative products, and personalized experiences.

In 2021, DTC sales reached $129.31 billion in the US, up 15.9% from the previous year. This growth is expected to continue in the coming years, with DTC sales projected to reach $161.22 billion by 2024.*

So, what does the future hold for DTC brands?

1. DTC brands are going omnichannel.

While DTC brands started out selling exclusively online, many are now expanding into physical retail. This is because consumers still want the ability to shop in person, especially for high-ticket items.

DTC brands are also using brick-and-mortar stores as a way to connect with customers and build brand loyalty. For example, Casper has opened several Sleep Shops where customers can try out its mattresses and other products.

2. DTC brands are focusing on personalization.

DTC brands have a unique advantage over traditional retailers in that they can collect a lot of data about their customers. This data allows DTC brands to personalize their marketing and product offerings to a much greater degree.

For example, DTC clothing brand Stitch Fix uses data from its customers to curate personalized boxes of clothing that are delivered to their doorsteps. This level of personalization is something that traditional retailers simply can’t compete with.

3. DTC brands are investing in social commerce.

Social commerce is the buying and selling of products and services directly through social media platforms. DTC brands are investing heavily in social commerce because it allows them to reach their target audience where they are already spending their time.

For example, DTC beauty brand Glossier has a strong presence on Instagram, where it uses influencers and user-generated content to promote its products. Glossier also sells its products directly through Instagram checkout.

4. DTC brands are expanding into new markets.

DTC brands are no longer just selling to consumers in the US. They are expanding into new markets all over the world. This is due in part to the rise of global e-commerce platforms like Amazon and Shopify.

For example, DTC mattress brand Casper now operates in over 20 countries. This expansion into new markets is helping DTC brands to reach a wider audience and grow their businesses.

How can direct mail experts help DTC brands succeed?

Direct mail can be a powerful tool for DTC brands to reach their target audience and build relationships with customers. Here are a few ways that direct mail experts can help DTC brands succeed:

SEGMENT CUSTOMER LISTS

Direct mail experts can help DTC brands to segment their customer lists based on demographics, purchase history, and other factors. This allows DTC brands to send more targeted and relevant direct mail campaigns.

PERSONALIZE DIRECT MAIL CAMPAIGNS

Direct mail experts can help DTC brands to personalize their direct mail campaigns by using customer data to address recipients by name, include relevant product recommendations, and offer personalized discounts.

CREATE ENGAGING DIRECT MAIL PIECES

Direct mail experts can help DTC brands to create engaging direct mail pieces that use high-quality images, persuasive copy, and effective calls to action.

TRACK AND MEASURE RESULTS

Direct mail experts can help DTC brands to track and measure the results of their direct mail campaigns so that they can see what is working and what is not.

Overall, the future of DTC brands is bright. By leveraging the latest trends and technologies, DTC brands can continue to grow and succeed. And direct mail experts can play a vital role in helping DTC brands achieve their goals.

Here are a few additional thoughts on how direct mail experts can position themselves for success in the DTC market:

Partner with DTC brands early on. DTC brands are often startups with limited marketing budgets. By partnering with DTC brands early on, direct mail experts can offer their services at a discounted rate and build long-term relationships.
Focus on data-driven direct mail campaigns. DTC brands are data-driven businesses. Direct mail experts should be able to show DTC brands how they can use data to improve the performance of their direct mail campaigns.
Offer a variety of direct mail services. In addition to traditional direct mail services, direct mail experts should also offer newer services like personalized video and print-on-demand direct mail. This will allow direct mail experts to meet the needs of a wider range of DTC brands.

By following these tips, direct mail experts can position themselves for success in the growing DTC market.

*Source: eMarketer, “US Direct-to-Consumer Ecommerce Sales, 2021-2024,” August 4, 2022.