A guide to direct-to-consumer (DTC, D2C)

The direct-to-consumer (D2C) model streamlines traditional supply chains by enabling brands to sell directly to customers via digital platforms, bypassing intermediaries like wholesalers and retailers, which reduces costs and enhances customer engagement. This model relies on a digitally savvy customer base and allows brands to gather valuable consumer insights, build stronger relationships, and offer personalized experiences. Despite its benefits, D2C brands face challenges such as managing logistics, competing with established retailers, and handling overheads. Success in the D2C space requires effective pricing strategies, marketing efforts, and technological integration to manage operations and enhance customer service. The model's growth potential is evident, with digital-native brands projected to account for a significant portion of D2C sales, although brands must remain vigilant about market trends and competition.