{"id":827,"date":"2024-07-01T14:08:36","date_gmt":"2024-07-01T14:08:36","guid":{"rendered":"https:\/\/www.yellowfalconmedia.com\/blog\/2024\/07\/01\/16-direct-to-consumer-dtc-trends-to-watch-for-in-2024-influencer-marketing-hub\/"},"modified":"2024-07-01T14:08:36","modified_gmt":"2024-07-01T14:08:36","slug":"16-direct-to-consumer-dtc-trends-to-watch-for-in-2024-influencer-marketing-hub","status":"publish","type":"post","link":"https:\/\/www.yellowfalconmedia.com\/blog\/2024\/07\/01\/16-direct-to-consumer-dtc-trends-to-watch-for-in-2024-influencer-marketing-hub\/","title":{"rendered":"16 Direct-to-Consumer (DTC) Trends to Watch for in 2024 &#8211; Influencer Marketing Hub"},"content":{"rendered":"<p> You are here: <span><span><a href=\"https:\/\/influencermarketinghub.com\/\">Influencer Marketing Hub<\/a><\/span> \u00bb <span><a href=\"https:\/\/influencermarketinghub.com\/ecommerce\/\">eCommerce<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>16 Direct-to-Consumer (DTC) Trends to Watch for in 2024<\/strong><\/span><\/span><br \/><span style=\"font-weight: 400;\">DTC (Direct-to-Consumer)<\/span><span style=\"font-weight: 400;\"> retail is no longer limited to digitally native brands. Traditional retailers are also adopting the same strategies, especially as they strive to compete in a post-pandemic world.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Direct-to-Consumer (DTC) sales are projected to keep growing as more brands move to the eCommerce space and established DTC players continue to expand their existing market. It&rsquo;s projected that in the US alone, digitally native brands will reach<\/span><a href=\"https:\/\/www.insiderintelligence.com\/content\/d2c-brands-2022\"> <span style=\"font-weight: 400;\">$44 billion in sales<\/span><\/a><span style=\"font-weight: 400;\"> by 2023, and established DTC brands will reach $138 billion in sales.<\/span><br \/><span style=\"font-weight: 400;\">While most of the<\/span><a href=\"https:\/\/influencermarketinghub.com\/direct-to-consumer-trends\/\"> <span style=\"font-weight: 400;\">DTC trends in 2023<\/span><\/a><span style=\"font-weight: 400;\"> will continue to 2024, there are new emerging trends that brands should watch out for. Understanding these trends will guide your business as you launch and sustain your DTC strategy in 2024 and beyond.<br \/> <\/span><br \/><span style=\"font-weight: 400;\">In this article, you&rsquo;ll learn more about Direct-to-Consumer retail and the DTC trends to look into this year.<\/span><span style=\"font-weight: 400;\"><\/span><br \/><a class=\"pink_button\" href=\"https:\/\/pipecandy.com\/research\/state-of-dtc-industry\/?utm_source=IMH\">Download the Report<\/a> <\/p>\n<div class=\"toc\" id=\"toc-spy\">\n<div class=\"toc_list\">\n<ul>\n<li class=\"toc_item\"><a href=\"#toc-0\">1. Inflation causes customers to tighten their belts<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-1\">\u00a02. More traditional retailers will adapt DTC models<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-2\">3. Personalized stories are the key to standing out<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-3\">4. Subscription pricing will remain popular<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-4\">5. Wider adoption of BNPL and other flexible payment options<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-5\">6. Lesser dependence on paid advertising<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-6\">7. Increased importance on Zero-Party or First-party data<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-7\">8. DTC Brands offering offline experiences<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-8\">9. Continued fascination with NFTs make them great for loyalty rewards<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-9\">10. Increased use of SMS marketing to reach customers<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-10\">11. Resurgence of plain-text emails<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-11\">12. Balance between wholesale and DTC channels<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-12\">13. Customer-Centric Product Returns Policies and Processes\u00a0<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-13\">14. Increased emphasis on building closed-community platforms<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-14\">15. \u00a0DTC brands will continue to use chatbots to improve customer experience<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-15\">\u00a016. Social Media Shopping will continue to grow<\/a><\/li>\n<li class=\"toc_item\"><a href=\"#toc-16\">Frequently Asked Questions<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">DTC existed even before the pandemic, but it experienced a major boom when the pandemic caused a major shift in consumer buying behavior.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Direct-to-consumer simply refers to the retail strategy where brand manufacturers sell their goods straight to customers instead of going through middlemen like department store chains or online retailers.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">It sounds simple, but it compels brands to understand their customers on a deeper level. It involves navigating the waters of order fulfillment, last-mile deliveries, product returns, and customer service. For big and established brands, it entailed added resources and more work versus simply managing retail partners.<\/span><br \/><span style=\"font-weight: 400;\">And yet despite the challenges, more and more brands are going the DTC route and many are succeeding.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">DTC experts predict that these trends will guide brands as they conduct their businesses in 2024. Read on and apply what&rsquo;s practical for your brand.<\/span><br \/><span style=\"font-weight: 400;\">The first trend is something not every brand wants to hear. Inflation is a global reality that&rsquo;s forcing consumers to cut back on spending and become more mindful of where to place their hard-earned money.<\/span><a href=\"https:\/\/www.cnbc.com\/2022\/04\/08\/as-inflation-bites-higher-income-consumers-are-cutting-back-too.html\"> <span style=\"font-weight: 400;\">CNBC<\/span><\/a><span style=\"font-weight: 400;\"> has reported that in the US, even high-income consumers are reducing their purchases to stretch their dollars further.<\/span><br \/><span style=\"font-weight: 400;\">DTC brands can work this reality to their favor by doing these tips:<\/span><br \/><span style=\"font-weight: 400;\">Despite customers starting to flock to physical stores, the convenience of online shopping will remain imprinted in the minds of many. With more customers becoming digitally savvy, expect that e-commerce will continue to rise.&nbsp;<\/span><br \/><em>Source: <a href=\"https:\/\/on.emarketer.com\/rs\/867-SLG-901\/images\/eMarketer%20D2C%20Marketing%20Trends%20Roundup%20August%202021.pdf\" rel=\"nofollow\">on.emarketer.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">Traditional retailers will want a piece of the action and will continue to adopt the same methods and strategies that helped digitally native brands thrive.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">DTC allows brands to control their messaging and how their products are presented to consumers. <\/span><a href=\"https:\/\/on.emarketer.com\/rs\/867-SLG-901\/images\/eMarketer%20D2C%20Marketing%20Trends%20Roundup%20August%202021.pdf\"><span style=\"font-weight: 400;\">L&rsquo;Oreal<\/span><\/a><span style=\"font-weight: 400;\"> has leveraged DTC to launch their Technology Incubator, which allows consumers to personalize products and the brand to be perceived as innovative.<\/span><br \/><span style=\"font-weight: 400;\">With more brands entering the DTC space, it&rsquo;s becoming increasingly competitive to acquire new custo<\/span><span style=\"font-weight: 400;\">mers and retain existing ones. In 2022,<\/span><a href=\"https:\/\/www.businesswire.com\/news\/home\/20220527005418\/en\/Retailers-Turn-to-Retention-and-Leveraging-Data-as-Main-Priorities-For-2022\"> <span style=\"font-weight: 400;\">66% of DTC companies<\/span><\/a><span style=\"font-weight: 400;\"> mentioned increasing customer acquisition costs as the main challenge in achieving their growth goals.<\/span><br \/><span style=\"font-weight: 400;\">DTC brands need to adapt creative strategies to stand out, and one of the best ways to do that is to focus on telling stories that the customers can relate to. This isn&rsquo;t simply about telling your brand story &ndash; it&rsquo;s about blending the stories that your customers care about with the ones that your brand can relate to.<\/span><br \/><span style=\"font-weight: 400;\">eCommerce is notoriously transactional, and brand stories, when done incorrectly, could backfire. Instead of drawing customers in, stories could send customers running. In telling a brand story, make the customers the hero and share how your products can help solve their dilemma.<\/span><br \/><span style=\"font-weight: 400;\">One major move to safeguard profitability is to have a solid pricing strategy. The e-commerce space is rife with deals and discounts, and competing in this arena can harm product margins.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">In 2022, DTC brands started adopting subscription pricing &ndash; even for physical products. This involves a monthly recurring fee in exchange for replenishment of commonly used goods. It works well with products that renew regularly, such as bath essentials, pantry supplies, and even pet food.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">DTC food brand, the <\/span><a href=\"https:\/\/www.butcherbox.com\/\"><span style=\"font-weight: 400;\">Butcher Box<\/span><\/a><span style=\"font-weight: 400;\">, implements a &ldquo;monthly box&rdquo; subscription service. Customers can choose from pre-selected boxes or customize their own box. They further incentivize customers with free products for staying on their subscription.<\/span><br \/><em>Source: <a href=\"https:\/\/www.butcherbox.com\/\" rel=\"nofollow\">butcherbox.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">For 2024, we will see more DTC brands following suit and offering the convenience of subscription pricing to their customers. It also becomes a huge incentive for customer loyalty and retention.<\/span><br \/><a href=\"https:\/\/influencermarketinghub.com\/shopping-cart-abandonment-tips\/\"><span style=\"font-weight: 400;\">Shopping cart abandonment<\/span><\/a><span style=\"font-weight: 400;\"> is one of the main pain points in e-commerce. With <\/span><a href=\"https:\/\/influencermarketinghub.com\/ecommerce-stats\/\"><span style=\"font-weight: 400;\">abandonment rates climbing as high as 70%<\/span><\/a><span style=\"font-weight: 400;\">, DTC brands must reduce this number to help improve profitability.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">One trend from 2023 that continues to 2024 and is meant to improve this number is the availability of flexible payment options. Aside from enabling the use of Apple Pay and Google Pay, DTC sites are also offering &ldquo;<\/span><a href=\"https:\/\/www.scalefast.com\/buy-now-pay-later\/\"><span style=\"font-weight: 400;\">buy now, pay later&rdquo; (BNPL) schemes<\/span><\/a><span style=\"font-weight: 400;\"> which work well for expensive products.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Consumers are loving this type of payment scheme because they can receive their orders by initially paying a fraction of the cost. In some cases, no upfront fees are collected. Interests are minimal or non-existent, making this type of consumer financing better than using banks and credit cards.<\/span><br \/><em>Source: <a href=\"https:\/\/www.afterpay.com\/en-US\/how-it-works\" rel=\"nofollow\">afterpay.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">Schemes like these are made possible by fintech startups like Afterpay, Affirm, and Klarna. DTC brands are turning to these financial payment solutions to draw customers to their websites. It helps that these startups also advertise brands that offer the BNPL scheme in their own apps.<\/span><br \/><span style=\"font-weight: 400;\">Launching a DTC brand used to be easy. Simply set up a Shopify site, place your products, run Facebook ads, and work with a fulfillment center. The ability to easily and quickly run ads on Facebook and Instagram was a key to the growth of many DTC brands.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">However, that came crashing down with the<a href=\"https:\/\/developer.apple.com\/news\/?id=ecvrtzt2\"> iOS 14 update<\/a><\/span><span style=\"font-weight: 400;\">. Apple users now can control how third-party apps, like Facebook, access and track their data. This makes it harder for advertisers who rely on third-party data to accurately target their consumers. It&rsquo;s also harder for brands to gauge the return on their ad investments.<\/span><br \/><span style=\"font-weight: 400;\">Paid advertising is only as effective as having a strong brand to begin with. Brands that have built a strong image through differentiation and storytelling are the ones succeeding in the face of paid ads&rsquo; limitations.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Moving forward, DTC brands will have to go back to the basics of building a strong brand foundation that is not reliant on pixel data for customer acquisition.<\/span><br \/><span style=\"font-weight: 400;\">Marketing teams are forced to explore other creative marketing channels such as SMS, <\/span><span style=\"font-weight: 400;\">email<\/span><span style=\"font-weight: 400;\">, print, and even offline locations to get consumers to shop from their online stores.<\/span><br \/><span style=\"font-weight: 400;\">With the iOS update, consumers have become more mindful of how much data they share with advertisers.<\/span> <span style=\"font-weight: 400;\">After Apple, Google followed suit and stopped using third-party cookies in Chrome. It&rsquo;s predicted that by the end of 2024, third-party cookies will be completely phased out.<\/span><br \/><span style=\"font-weight: 400;\">But customer data is important for brands to provide personalized experiences and recommendations to their customers. In fact,<\/span><a href=\"https:\/\/www.salesforce.com\/resources\/research-reports\/state-of-the-connected-customer\/\"> <span style=\"font-weight: 400;\">56% of customers<\/span><\/a><span style=\"font-weight: 400;\"> expect personalization in their shopping experiences, and if DTC brands can&rsquo;t rely on third-party data, they must find a way to acquire first-party data.<\/span><br \/><span style=\"font-weight: 400;\">First-party data (or zero-party) is information customers willingly share with brands and that the latter can use for ad targeting purposes. For some, merely asking for this data is sufficient. But for other brands, putting in a little creativity wouldn&rsquo;t hurt.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">DTC makeup brand, <\/span><a href=\"https:\/\/www.ipsy.com\/\"><span style=\"font-weight: 400;\">Ipsy<\/span><\/a><span style=\"font-weight: 400;\">, has a creative way of asking customers to share personal data. Using personalization quizzes, the brand can gather relevant customer information that they use to recommend appropriate products.&nbsp;<\/span><br \/><em>Source: <a href=\"https:\/\/www.ipsy.com\/quiz\/take\/questions\" rel=\"nofollow\">ipsy.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">Digitally native brands, that launched and grew online, are now seeing the need to have a brick-and-mortar presence.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Physical stores serve as venues for customers to test products and engage with the brand. Even if customers will purchase online, having a physical store serves as an added advertisement and marketing channel. Since advertising exclusively online has become expensive, having an on-site advertising channel helps alleviate huge ads cost as well as improve profitability.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Some DTC brands like <\/span><a href=\"https:\/\/www.allbirds.com\/pages\/our-story\"><span style=\"font-weight: 400;\">AllBirds<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/knix.com\/pages\/about-us?loc=Main-AboutNav&amp;nav=AboutUs-Page\"><span style=\"font-weight: 400;\">Knix<\/span><\/a><span style=\"font-weight: 400;\"> opened their own physical outlets. AllBirds has been expanding its store footprint by opening stores in Denver, Atlanta, Los Angeles, Chicago, and other areas. Knix is opening stores in areas like California where it has a high concentration of digital customers. Both brands have the same goal of complimenting their digital sales with in-person retail centers.&nbsp;<\/span><br \/><em>Source: <a href=\"https:\/\/nrf.com\/blog\/shoe\" rel=\"nofollow\">nrf.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">Other DTC brands are partnering with major retailers like Walmart, Nordstrom, and Target. By introducing their products in these channels, DTC brands expand their retail footprint. Large retailers, on the other hand, can tap younger markets who are fans of these digitally native brands.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">E-commerce is becoming highly saturated and more competitive. DTC brands need to rely on other traditional methods, like brick-and-mortar stores, to stand out.<\/span><br \/><span style=\"font-weight: 400;\">NFTs will continue to be the rage in 2024 and if your target market appreciates this new technology, rewarding them with it will work wonders for customer retention.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">DTC nutrition company Athletic Greens has moved to Web3 and announced that loyal customers will be rewarded with NFTs. Other brands have followed suit, such as Under Armour offering a Genesis Curry Flow NFT and Clinique offering a Meta-Optimist NFT.<\/span><br \/><em>Source: <a href=\"https:\/\/athleticgreens.com\/en\" rel=\"nofollow\">athleticgreens.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">NFTs can be offered to loyal customers and be used to build a community &ndash; something that DTC brands should consider as they face increasing advertising costs.<\/span><br \/><span style=\"font-weight: 400;\">If you go this route, consider also using NFT-based communities as venues for beta tests and feedback groups.<\/span><br \/><span style=\"font-weight: 400;\">SMS is a simple but effective way to instantly reach your target audience.<\/span> <span style=\"font-weight: 400;\">SMS marketing<\/span><span style=\"font-weight: 400;\"> continues to be a reliable method to send promotional campaigns despite the proliferation of more advanced technology.<\/span><br \/><span style=\"font-weight: 400;\">It has a 98% open rate, and 77% of buyers develop a positive perception of a company that uses SMS notifications.<\/span><br \/><span style=\"font-weight: 400;\">For DTC brands, this provides a gold mine to engage customers and let them know of ongoing promotions and upcoming product releases. You already have your customers&rsquo; phone numbers, so why not use them for more than just shipping updates?<\/span><br \/><span style=\"font-weight: 400;\">Just be mindful of the rules surrounding SMS and never send spam content.<\/span><br \/><span style=\"font-weight: 400;\">HTML emails that carry your branding elements look great but have the highest potential to end up in Promotional (or Junk) folders. And with customers receiving dozens of promotional emails per day, your messages could end up unopened for good.<\/span><br \/><span style=\"font-weight: 400;\">DTC brands are now mixing plain-text emails alongside beautifully-designed newsletters. Plain-text email feels more personal and has a higher chance of landing straight in a user&rsquo;s inbox.<\/span><br \/><span style=\"font-weight: 400;\">However, not all messages can be effectively communicated using plain text, so carefully select which campaigns are done in plain text and which are done in full color.<\/span><br \/><span style=\"font-weight: 400;\">Traditional brands like Nike, Adidas, and Under Armour are capitalizing on the growth of athletics wear via the DTC model. Nike projects its DTC arm to be responsible for 60% of its total revenue by 2025. In 2010, DTC sales only made up 10% of Nike&rsquo;s overall revenue. In the past several years, Nike has transitioned to DTC and closed many of its wholesale retailers like Macy&rsquo;s, Urban Outfitters, and Zappos.&nbsp;<\/span><br \/><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"623\" src=\"data:image\/svg+xml,%3Csvg%20xmlns='http:\/\/www.w3.org\/2000\/svg'%20viewBox='0%200%20800%20623'%3E%3C\/svg%3E\" alt=\"traditional retailer vs dtc\" class=\"size-full alignnone wp-image-144725 ewww_webp_lazy_load\" data-lazy-srcset=\"\/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1.jpg 800w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-300x234.jpg 300w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-768x598.jpg 768w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-150x117.jpg 150w\" data-lazy-sizes=\"(max-width: 800px) 100vw, 800px\" data-lazy-src=\"\/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1.jpg\" data-lazy-src-webp=\"\/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1.jpg.webp\" data-lazy-srcset-webp=\"\/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1.jpg.webp 800w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-300x234.jpg.webp 300w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-768x598.jpg.webp 768w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-150x117.jpg.webp 150w\"><noscript><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"623\" src=\"\/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1.jpg\" alt=\"traditional retailer vs dtc\" class=\"size-full alignnone wp-image-144725\" srcset=\"\/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1.jpg 800w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-300x234.jpg 300w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-768x598.jpg 768w, \/\/influencermarketinghub.com\/wp-content\/uploads\/2022\/04\/traditional-retailer-vs-dtc-scaled-1-150x117.jpg 150w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\"><\/noscript><br \/><span style=\"font-weight: 400;\">However, business analysts continue to question the profitability of relying on DTC sales over maintaining wholesale retailers. This came after seeing how wholesale sales provided higher margins despite brands getting more sales from DTC. In fact, pure-play e-retailers are<\/span><a href=\"https:\/\/www.retaildive.com\/news\/retailers-grapple-e-commerce-profitability\/625450\/\"> <span style=\"font-weight: 400;\">two times more likely<\/span><\/a><span style=\"font-weight: 400;\"> to report they are unprofitable versus brands with a brick-and-mortar presence.<\/span><br \/><span style=\"font-weight: 400;\">To manage the changing landscape and maintain profitability, brands must explore both DTC and wholesale channels. Once DTC-exclusive brands<\/span><span style=\"font-weight: 400;\"> like Casper have been increasing their retail footprint by partnering with major retailers like Costco, Target, Sam&rsquo;s Club, and Nordstrom. The brand now has 25 retail partners across 72 retail stores.<\/span><br \/><a href=\"https:\/\/coresight.com\/research\/wholesale-vs-dtc-strategies-for-brands-and-retailers\/\"><span style=\"font-weight: 400;\">Coresight Research<\/span><\/a><span style=\"font-weight: 400;\"> predicts that more brands will continue to adopt a hybrid DTC-wholesale model as the need to strike a balance between the two retail strategies becomes more evident.&nbsp;&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Product returns are often seen as a &ldquo;boring but necessary&rdquo; part of e-commerce operations<\/span><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">However, fear of returns has consistently discouraged customers<\/span><span style=\"font-weight: 400;\"> from purchasing online.<\/span><br \/><span style=\"font-weight: 400;\">The survey showed that 3 out of 5 respondents (from the US, UK, and France) preferred free return shipping with 2 out of 5 preferring refunds via the original payment method.<\/span><br \/><span style=\"font-weight: 400;\">Product returns policy and processes will be a major game-changer for DTC brands. It will be the main differentiator for customers in deciding which brand to purchase from. Brands need to rethink their returns strategy and consider improving their internal returns processes, refund insurance, and return locations. Furthermore, brands should improve their products and how they present them to avoid returns in the first place.<\/span><br \/><span style=\"font-weight: 400;\">DTC brands that are customer-focused will strive to understand what their customers want and stand out in a sea of highly competitive offers.<\/span><br \/><span style=\"font-weight: 400;\">Growing an audience on social media is an essential DTC marketing strategy. A highly engaged audience is a guaranteed way to increase brand sales and build brand loyalty. However, your brand is at the mercy of these rented platforms.<\/span><br \/><span style=\"font-weight: 400;\">A slight change in policy &ndash; or a change in leadership &ndash; can totally upheave how you interact with your community. Social media giants are known to consistently introduce algorithm changes, new ad policies, and strict moderation rules that can hamper brand growth.<\/span><br \/><span style=\"font-weight: 400;\">DTC brands should leverage these rented platforms for what they can offer &ndash; a quick way to reach targeted audiences &ndash; and then shift that captured audience into a brand-controlled platform. It can be anywhere from your own member-exclusive website or your highly segmented email marketing list.<\/span><br \/><span style=\"font-weight: 400;\">Controlling customer data will future-proof your business and insure it is against the whims of any rented platform.<\/span><br \/><span style=\"font-weight: 400;\">Chatbots<\/span><span style=\"font-weight: 400;\"> have been increasingly used in the past year by e-commerce sites and this trend will continue. Brands who&rsquo;ve used them to streamline <\/span><a href=\"https:\/\/influencermarketinghub.com\/customer-service-software\/\"><span style=\"font-weight: 400;\">customer service<\/span><\/a><span style=\"font-weight: 400;\"> attest to how much chatbots reduce valuable customer service time. <\/span><a href=\"https:\/\/influencermarketinghub.com\/ai-chatbot-platforms\/\"><span style=\"font-weight: 400;\">AI chatbots<\/span><\/a><span style=\"font-weight: 400;\"> have claimed to reduce as much as 92% of customer service tickets.<\/span><br \/><span style=\"font-weight: 400;\">As AI technology evolves, and as customers become increasingly comfortable <\/span><span style=\"font-weight: 400;\">dealing with chatbots<\/span><span style=\"font-weight: 400;\">, we can expect to see more of these automated tools answering our product questions, dealing with order concerns, handling product returns, and giving out general information.&nbsp;<\/span><br \/><em>Source: <a href=\"https:\/\/feastables.com\/\" rel=\"nofollow\">feastables.com<\/a><\/em><br \/><span style=\"font-weight: 400;\">DTC organic chocolate brand, <\/span><a href=\"https:\/\/feastables.com\/\"><span style=\"font-weight: 400;\">Feastables<\/span><\/a><span style=\"font-weight: 400;\">, by YouTube influencer Mr. Beast, relies on its customized on-brand AI chatbot. Dubbed FeastyBot, the chatbot handles everything from helping customers place orders, providing shipping updates, handling payments, expounding product info, and even running sweepstakes contests.<\/span><br \/><span style=\"font-weight: 400;\">In the past, brands will encourage social media followers to purchase from the link in the bio or the link in the caption. <\/span><span style=\"font-weight: 400;\">In recent years, social media sites developed<\/span><span style=\"font-weight: 400;\"> ways to integrate online shops directly into their platform.<\/span><br \/><span style=\"font-weight: 400;\">Online shopping right from within a social media post has become increasingly popular with Gen Z and millennials. With social shopping or<\/span><a href=\"https:\/\/influencermarketinghub.com\/social-commerce-landscape\/\"> <span style=\"font-weight: 400;\">social commerce<\/span><\/a><span style=\"font-weight: 400;\">, consumers can now directly purchase items straight from a social media post without going through the whole checkout funnel of the usual e-commerce website.<\/span><br \/><span style=\"font-weight: 400;\">Instagram has<\/span> <span style=\"font-weight: 400;\">Shoppable Posts<\/span><span style=\"font-weight: 400;\"> and TikTok has<\/span><a href=\"https:\/\/influencermarketinghub.com\/tiktok-shopping\/\"> <span style=\"font-weight: 400;\">TikTok Shopping<\/span><\/a><span style=\"font-weight: 400;\">. Facebook made improvements to its<\/span><a href=\"https:\/\/influencermarketinghub.com\/how-to-create-facebook-shop\/\"> <span style=\"font-weight: 400;\">Facebook Shop<\/span><\/a><span style=\"font-weight: 400;\"> and made it easy to set up. <\/span><span style=\"font-weight: 400;\">And other sites are also on their way to developing their own shopping-related functionalities.<\/span><br \/><span style=\"font-weight: 400;\">This trend will continue, as social media platforms invest in creative ways to keep consumers on their platforms for longer periods. And since they get a cut of the action, it&rsquo;s also in their best interest to improve their social commerce tools.<\/span><br \/><span style=\"font-weight: 400;\">For 2024, it&rsquo;s predicted the social commerce will account for $30 billion in sales which is 20% of the global retail e-commerce sales. And with Gen Z driving the popularity of TikTok, it&rsquo;s not uncommon for social commerce to reach<\/span><a href=\"https:\/\/www.statista.com\/statistics\/1251145\/social-commerce-sales-worldwide\/\"> <span style=\"font-weight: 400;\">$2.9 trillion by 2026<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><br \/><span style=\"font-weight: 400;\">Direct-to-Consumer (DTC or D2C) is here to stay. Even as the pandemic wanes and consumers frequent brick-and-mortar stores again, the convenience they&rsquo;ve experienced from shopping online will remain.&nbsp;<\/span><br \/><span style=\"font-weight: 400;\">Despite setbacks from supply chain issues, labor shortages, and advertising restrictions, DTC brands continue to flourish. And as the lines blur between traditional retail and direct-to-consumer retail, we can anticipate better innovation and more customer-focused initiatives that will elevate e-commerce to new heights.<\/span><br \/><span style=\"font-weight: 400\">The proliferation of DTC brands proves that they are far from being a fad. With the Covid-19 pandemic boosting e-commerce further, even traditional retailers are seeing the advantages of the DTC retail model.&nbsp;<\/span><br \/><span style=\"font-weight: 400\">The DTC space used to be occupied solely by digitally native brands. These are brands that are sold exclusively online. But lines have since blurred as we witness traditional retailers adopt the DTC model and digitally native brands open physical stores.&nbsp;<\/span><br \/><span style=\"font-weight: 400\">DTC brands in the US, on average, have a GMV (gross margin value) <\/span><a href=\"https:\/\/influencermarketinghub.com\/direct-to-consumer-industry\/\"><span style=\"font-weight: 400\">between USD1M to USD5M<\/span><\/a><span style=\"font-weight: 400\">. This proves that these brands are far from being a fad and will be here in the long run.<\/span><br \/><span style=\"font-weight: 400\">Here are proven ways to increase DTC sales:<\/span><br \/><span style=\"font-weight: 400\">Direct-to-consumer (DTC or D2C) is a retail distribution strategy where manufacturers directly sell their products to consumers instead of going through a distribution network composed of wholesalers, distributors, and retailers.&nbsp;<\/span><br \/><span style=\"font-weight: 400\">DTC brands have proliferated due to the growth of e-commerce and the ease of setting up an online store. The Covid-19 pandemic further boosted the industry because consumers were restricted from visiting physical stores and had to resort to purchasing online.&nbsp;<\/span><br \/><span style=\"font-weight: 400\">Armed with digital advertising channels, DTC brands can reach their target audience and drive traffic to their online stores.&nbsp;<\/span><br \/><span style=\"font-weight: 400\">Today, we see traditional brands adopting a DTC strategy as well as previously online-exclusive brands (digitally native brands) entering traditional distribution networks.<\/span><br \/>With Amazon being the largest eCommerce platform on the planet, it\u2019s easy to forget&#8230;<br \/>The time alone that you\u2019ll save using Fulfillment by Amazon (aka Amazon FBA) makes it a&#8230;<br \/>Navigating the intricate world of social selling requires more than just a digital&#8230;<\/p>\n<p><a href=\"https:\/\/news.google.com\/rss\/articles\/CBMiPWh0dHBzOi8vaW5mbHVlbmNlcm1hcmtldGluZ2h1Yi5jb20vZGlyZWN0LXRvLWNvbnN1bWVyLXRyZW5kcy_SAQA?oc=5\">source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You are here: Influencer Marketing Hub \u00bb eCommerce \u00bb 16 Direct-to-Consumer (DTC) Trends to Watch for in 2024DTC (Direct-to-Consumer) retail is no longer limited to digitally native brands. Traditional retailers are also adopting the same strategies, especially as they strive to compete in a post-pandemic world.&nbsp;Direct-to-Consumer (DTC) sales are projected&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-827","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/posts\/827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/comments?post=827"}],"version-history":[{"count":0,"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/posts\/827\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/media?parent=827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/categories?post=827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yellowfalconmedia.com\/blog\/wp-json\/wp\/v2\/tags?post=827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}