The Direct to Consumer (DTC) model has exploded in popularity over the past decade.
Starting an online business has never been easier than it is today. And for this reason, all brands that build their strategy on online sales inevitably face huge competition. Especially if they cannot offer their consumers any truly unique product.
Against this background, the DTC model, which is based on sales directly to customers, and not through distribution channels or retail stores, is gaining popularity. DTC brand communicates directly with his fans, which increases the level of trust and allows you to better follow all the trends.
The history of this direction began with the advent of the brand of sunglasses in 2010 Warby Parker. At first, sales of products were carried out exclusively via the Internet; the first offline store was launched only in 2013. The main feature of Warby Parker was the DTC model, which allowed her to reduce costs, making her products cheaper than competitors without any loss in quality.
Today, the DTC model is already used by many brands, including such giants as Nike or Asics. Companies are actively rethinking marketing strategies and redefining traditional sales models. At the same time, there are brands on the market that can be called the real “pioneers of DTC”. In this material we will name the most famous and successful of them.
Allbirds
Although the founders of this brand had no experience in creating shoes before, they managed to create products that immediately fell in love with many consumers, among whom there were many famous personalities. The brand hasn't just designed shoes that are simpler, they've redesigned the entire manufacturing process, from the choice of materials for the product to the rethinking of packaging, all with an emphasis on sustainability.
Despite all the upheavals of the coronavirus era, the company continues to feel confident. She has no problems with financing and she is expanding the range of products. Allbirds today it is no longer only shoes, but also jumpers and down jackets that are comfortable for everyday wear.
away
The brand entered the market in 2016, its creators set themselves the goal of making travel more comfortable. It all started with a suitcase, then other product samples followed. It only took 2 years to away became profitable and appealed to many buyers.
And although today, due to the coronavirus pandemic, people have become much less likely to travel, the brand still manages to feel good and attract additional funding in the millions of dollars.
Brooklinen
When Rich and Vicki Fulop founded Brooklinen in 2014, their goal was simply to create comfortable sheets. Since then, the brand has expanded beyond its original category to include items such as bath towels and homewear in its product range. Despite the fact that this market was already crowded, the young company managed to quickly gain a foothold in it thanks to its focus on consumers and a more attentive attitude to their needs.
According to PitchBook, Brooklinen received a $50 million investment in March from Summit Partners, bringing its total fundraising to $62.3 million to date.
Chewy
This pet food company was one of the first companies in the sector to embrace e-commerce. Consumers quickly appreciated the ability to quickly and conveniently purchase everything they need for their pets without leaving home.
The number of active customers at Chewy is growing today at a very fast pace, several million annually. And the coronavirus pandemic has only contributed to this process. The company is not yet profitable, as the funds are actively spent on marketing and promotion. But her leadership is more than positive, not even doubting the great future of the brand.
Glossier
The history of this brand began in 2010, when Emily Weiss launched Into the Gloss, a beauty website. It encouraged visitors to share their favorite products and served as a source of inspiration and information. Four years later, the site's creator founded Glossier, a beauty brand that puts the consumer at the heart of it.
According to data provided by PitchBook, over the past few years, Glossier has become not just famous, but almost a cult, and its turnover has reached $ 1.2 billion.
Today it is one of the most followed brands on Instagram and TikTok.
