Consumer and Retail in the News – Issue 277

TW Viewpoint

The direct to consumer (DTC) sector has developed into big business. The rationale seems compelling for a start-up brand with a story – specialist product, better customer insight and engagement, removing cost from the supply chain by selling direct, retain control of the brand equity. But the territory has become crowded; among the mattress and shaving brands which seem to regenerate weekly the major brands have swamped the market which was previously the preserve of disrupters as an alternative route to market. And yet it is operational challenges, principally stock and distribution, which are the major challenge to the DTC model and are most acutely felt by the upstarts. As with other areas of e-commerce, reaching the audience is easier than ever but getting the product to reach them is the major challenge.

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