Is the direct-to-consumer model still viable in today's market? 14
Is the direct-to-consumer business model still a viable option in the current retail market?
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The direct-to-consumer model is still viable, but it is evolving. Companies are finding that they may need to pivot and diversify their approach, such as selling through wholesale channels or partnering with larger retailers. The model requires adaptation to changing market conditions, such as increased digital advertising costs and the need for a clear path to profitability. While some DTC companies have struggled, others have found success by adjusting their strategies and continuing to innovate.
Customers don't care if it's D2C. They care about price, quality and convenience. The real draw of D2C is subscription shopping. I don't have to buy the same thing repeatedly, it just shows up at my door. offers this.
Turns out there is a reason why retailers receive some good profit for taking basic goods close to our homes, IT TAKES A LOT OF TIME, effort and investment to do so.
Any middle man trying to replace two middle man would have almost the exact same expenses than the ones he replaces and would have to make some profit too.
So is pointless to relay in those brands unless they are actually making some great innovation in the industry.
DTC is just a tech version of the ancient Sears Roebuck catalogue. It works well for consumers out in the country and is a supplement to those in large cities. One of the problems is that those it fits best have less disposable income and they tend to be a shrinking and ageing demographic. Fashion brands can have a shelf life, particularly in the teen age group. Hot today, tepid tomorrow.
D2C has a place in today’s and in the future market. Those companies trying to go the D2C route just need to find the right formula to make it work.
Loved the story!
So, DTC is not dead, but it is evolving. The companies that are going to be successful in the future are the ones that can adapt to the changing landscape and overcome the challenges that are facing the industry.
Lots of D2C companies, and non D2C companies, fail every day. That isn't a comment on the model. Tesla is an insanely successful D2C company.
I think DTC is ready for a sustainable version, 3.0: mass customization. Not everything is subscription worthy, nor is it best delivered. But there’s still a big gap between what the consumer wants & what mass market retailers are willing to offer. I’m a male so I don’t know, but the new companies that are creating items like Beas for non-standard sizes are likely more sustainable over the years, creating a loyal customer base if they maintain the quality/value proposition they started with.
you answered it yourself, it has nothing with being direct to consumer. it has to do with the fact that they aren't affordable. while selling DTC might seem "cheaper". it's not, why? while a large manufacturer is selling their own product to store (middleman), that store is also taking in products from thousands of other manufacturers. while a DTC brand like some of the ones you mentioned, offer "premium" products that are still expensive because these brands have to pay all of the people that still do what the middleman does
this isn't like buying direct from a factory where its just a bunch of workers and engineers, its still a brand, they have marketing, they have sellers, they have the middleman integrated in their own company, it costs more than a traditional retailer because well, that traditional retailer is selling orders of magnitude more products and brands
The only DTC product I’ve ever bought is a pair of Thursday Boots. And it took me years to decide to pull the trigger. I had to do a ton on research about the quality and customer before I made my decision. I’m happy with my purchase. Perfectly good boots for $200. My main issue with DTC is that I can test the product without buying it. I understand that returns are a thing. But that’s just a hassle and inconvenience I don’t feel like going thru. And I feel like DTC appeals to impulse buying, which I am against.
I bought a printer recently from a retailer, walked in bought it and left. I compared it on those e-commerce shops like the local ones. And the difference is $10. Literally $10. If I include shipping it's literally more expensive than if I go to shop and buy it, also I have to wait to get my stuff. Even if I am to include the traveling cost, it's not gonna be as expensive than if I buy in store.
Since then the only reason I buy on e-commerce stores is because they have the models I want.
E-commerce is dead.
We need to go back to physical stores, physical media cuz. I don't want to pay subscription service. You also support your local community Infrastructure when the jobs go the community goes. HBHM
Direct to consumer will continue to expand as corporations continue to cut out the middle man
Lol I just learned what direct to consumers is. The only I had contact with was threasup which I still use for second hand clothes because since I started using them, I have never gotten my size wrong thanks to them giving you the measurements of the clothes. I haven't bought a new item of clothes since 2022 so am definitely not going back to the physical stores. And mind you, I tried last year and I ended up leaving after 30 minutes because the sizes were so bad each time I looked at myself in the mirror, I felt like sh**. This isn't plug in for threadup. I just think they do it well and it has personality done me right.