Direct-to-consumer is the new retail disruption.
In our age of extreme immediacy in which every imaginable product is available with the click of a button, it’s no surprise that direct-to-consumer brands are skyrocketing in popularity. Nowadays, along with low-price consumer packaged goods (CPG), you can order entire coordinated outfits from Frank and Oak, meals in a box from Goodfood, and personalized hair dying kits from L’Oréal’s Colour & Co. The examples of brands disrupting the market in this way are everywhere and those taking the plunge are not looking back. Point in case, according to IAB, Nike projects that their direct-to-consumer sales will have grown by almost 2.5 times between fiscal 2015 and 2020, going from $6.6 billion to $16 billion. As for the food market, meal kit services are taking off: with sales expected to grow tenfold by 2022, the to-your-door delivery formula is reminiscent of the days of the milkman. So, as Mitch Joel would say, why is “direct the new disruption”? These direct-to-consumer brands are inherently consumer-centric, as the entire shopping experience becomes built around their specific needs and wants. Forget about the masses, in this model, things get personal. To achieve this level of tailoring, you can’t go about it haphazardly, there needs to be one-on-one engagement with each person.
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