Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: Market context
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Impact of COVID-19 on ecommerce and DTC
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on ecommerce and DTC retailing, January 2020
- Opportunities and Challenges
- Consumers can shop smart with their hearts
- Leverage the power of partnerships
- Adopt a DTC approach to improve the overall shopping experience
The Market – Key Takeaways
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- eCommerce continues to be a main source for shopping
- Providing various means of value
- Tech leads to a more personalized shopping experience
- Mainstream brands enter the DTC arena
Market Size and Forecast
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- Growth continues
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- Figure 3: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Macroeconomic factors
- Singing the DPI blues
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- Figure 4: Disposable Personal Income change from previous period, January 2007-November 2020
- Consumer confidence lags pre-COVID levels
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- Figure 5: Consumer Sentiment Index, January 2007-November 2020
- Impact of COVID-19 on ecommerce and direct-to-consumer retailing
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- Figure 6: Short-, medium- and long-term impact of COVID-19 on ecommerce and DTC retailing, January 2021
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
Market Factors
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- Showcasing affordable, high quality in a rocky financial situation
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- Figure 7: Unemployment and underemployment, January 2007- November 2020
- Correlate a brand name to a good cause
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- Figure 8: Allbirds Black Friday Initiative
- Technology enables a constant connection
- Blocked acquisitions give way to competition
Market Opportunities
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- Mainstream brands enter the DTC space
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- Figure 9: PepsiCo’s pantry shop website launch
- Partnering with major retailers
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- Figure 10: Quip at retailers
- Leveraging tech for a personalized shopping experience
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- Figure 11: Fenty Beauty shade match
- DTC brands give way to conscious shopping
Companies and Brands – Key Takeaways
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- Pushing for a better tomorrow
- Redefining the path to value
- New food delivery method
Competitive Strategies
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- Partnering for the greater good
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- Figure 12: Allbirds and Adidas partnership
- Stepping up the value proposition
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- Figure 13: Italic shoes
- A new way to get chips quick
The Consumer – Key Takeaways
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- Consumers are highly aware of DTC efforts
- DTC brands are partners for overwhelmed consumers
- Consumers don’t miss the middleman
- Consumers seek out local to support communities
- Physical stores remain an important strategy
Consumer Trend Drivers and DTC Retailing
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- DTC brands can foster a stronger connection with consumers
- Technology
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- Figure 14: Technology
- Value
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- Figure 15: Value
- Experiences
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- Figure 16: Experiences
- Surroundings, Rights and Identity
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- Figure 17: Rights, Identity, Surroundings
Consumer Knowledge of DTC Companies
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- Awareness of DTC grows during the pandemic
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- Figure 18: DTC companies known, October 2020
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- Figure 19: Glossier
- Opportunities reign aplenty
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- Figure 20: Purchases from DTC, October 2020
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- Figure 21: Purchases from DTC, by generations, October 2020
- Expanding the direct-to-consumer model
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- Figure 22: DTC purchase frequency year over year, October 2020
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- Figure 23: DTC purchase frequency year over year, October 2020
- Prosperity after the pandemic
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- Figure 24: Impact of COVID-19 on future plans, October 2020
Consumer Attitudes toward DTC brands
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- DTC brands are consumers’ partners in shopping
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- Figure 25: Attitudes toward DTC brands, October 2020
- How consumers find value can vary by gender
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- Figure 26: Attitudes toward DTC brands, by gender, October 2020
- DTC approach increases competition within categories
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- Figure 27: Impact of COVID-19, October 2020
- Getting personal and sparking joy with Millennials
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- Figure 28: Impact of COVID-19, by generation, October 2020
Motivation and Likes About DTC Brands
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- Use value-driven options to encourage consumers to shop
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- Figure 29: Reasons for purchasing DTC, October 2020
- Younger consumers want a say in their product design
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- Figure 30: Reasons for purchasing DTC, by generation, October 2020
- DTC adds to the value equation by cutting out the middleman
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- Figure 31: What consumers like about DTC, October 2020
- Help younger consumers feel a part of the brand family
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- Figure 32: What consumers like about DTC, by generation, October 2020
Barriers and Dislikes About DTC Brands
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- Becoming, and staying, top of mind is critical
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- Figure 33: Reasons for not purchasing DTC, October 2020
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- Figure 34: Function of Beauty at Target
- Build younger consumers’ confidence along the purchase journey
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- Figure 35: Reasons for not purchasing DTC, by generation, October 2020
- DTCs aren’t immune to ecommerce barriers
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- Figure 36: Dislikes about DTC, October 2020
- Improve the post-purchase processes
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- Figure 37: Dislikes about DTC, by generation, October 2020
The Role of Physical Stores
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- Leveraging the physical world to drive engagement in the digital world
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- Figure 38: Motivations to visit a DTC store, October 2020
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- Figure 39: TURF Analysis – Motivations for visiting a DTC store, October 2020
- Younger generations just want to have fun
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- Figure 40: Motivations to visit a DTC store, by generation, October 2020
- Give consumers avenues to explore
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- Figure 41: Attitudes toward DTC stores, October 2020
- Driving urgency through exclusivity
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- Figure 42: Attitudes toward DTC stores, by generation, October 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 43: DTC stores visited, October 2020
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- Figure 44: DTC companies known, by generation, October 2020
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