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This has now propelled direct-to-consumer brands to end up on the shelves of Amazon, Target, Walmart, Ulta, Sephora, and Whole Foods鈥攂ecause that's where reach and qualified shoppers exist. II: What are the challenges with retail media? RT: The only retailer that's truly built out a self-serve retail media platform today is Amazon.

Brand execs from Forever 21, Abercrombie & Fitch, and more talk AI, Gen Z, and D2C. Lean on experimentation for measurement success in ad campaigns. Unified ID 2.0 gains momentum as industry giants embrace privacy-focused advertising. Search experts on how AI, changing consumer behaviors, and an influx of digital channels are redefining search advertising.

Malls are evolving, retailers are investing in experiential stores, and direct-to-consumer brands like Allbirds and Brooklinen are expanding their store counts. While the ratio of openings to closing may narrow, consumers continue to find value in physical stores. We expect physical stores will account for 84.2% of retail sales this year, down slightly from 85.3% last year.

Employers, not consumers, will make the difference in 2023: Although Cost Plus Drugs launched with a direct-to-consumer, cash-only model, the company has quickly pivoted to work with PBMs and insurers such as Capital Blue Cross, a Pennsylvania health plan.

Digital natives look for growth: Digitally native direct-to-consumer brands have ramped up brick-and-mortar investment considerably as ecommerce growth slows and customer acquisition costs skyrocket. Both Warby Parker and Allbirds are relying more on physical stores to drive customer awareness, engagement, and sales.

Krasnow: There is always a challenge for any direct-to-consumer brand if you're not seeing the product first. So we have a three-day swap service to allow customers to see how each piece fits into their home. They can return the product if they don鈥檛 like it.

That growth stems from direct-to-consumer brands like Allbirds and Brooklinen opening up more stores. Amazon is also experimenting with store formats. The retail giant recently opened Amazon Style, a 30,000-square-foot technology-focused store that features clothing, shoes, and accessories in an upscale Los Angeles shopping center.

Almost a third (32%) of US adults cite more relevant products as a top reason to purchase from D2C companies, per a May 2023 survey from SurveyMonkey. Nearly a quarter (24%) cite a more personalized shopping experience as a top reason.

B2B buyers are real people, so maintaining a social presence the same way a D2C company might is vital. For WeTransfer, this means working with creators who use the software to bring creative ideas to life, rather than just selling it as a productivity tool. This was originally featured in the eMarketer Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Many industries have diverted funds away from traditional advertising channels and toward direct-to-consumer marketing, where they can avoid dealing with ad exchanges and attempt to maintain loyalty through a potential consumer spending downturn. 42% of survey respondents said they would be spending more on digital advertising next year鈥�50% are planning to cut 鈥渙ffline鈥� ad spending.

Direct-to-consumer (D2C) brands鈥攆rom digital health to consumer electronics鈥攚ill follow the leaders and tout their own distinctive features that put customers in control of their data. The message will be diluted. Breaking through the noise will become increasingly difficult as the year drags on and more providers join the chorus.

Returns growth outpaced sales for many online direct-to-consumer brands. Loop, a returns service provider for Shopify merchants, reported a 31% year-over-year increase in returns processed in the five days after Christmas. A perfect storm of factors fueled increased returns during the 2022 holiday season. Shoppers were more price sensitive and less brand loyal in the face of inflation.

The play-by-play: Nike has been bouncing between D2C and wholesale retail, struggling to find the right mix. This has given newer brands, like Hoka, an opportunity to muscle in on Nike鈥檚 audience, specifically younger consumers and runners.

And within digital, spend is shifting as marketers focus on discounts and direct-to-consumer advertising. This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

鈥淒espite Nike鈥檚 recent focus on D2C, the company is rebuilding its relationship with retail partners like Foot Locker and Dick鈥檚 Sporting Goods, which could signal a larger shift back to wholesale,鈥� said Wolff. Ulta Beauty wins at loyalty.

But Snap isn鈥檛 a retail company, and the D2C partnerships with Goodr, Princess Polly, and Gobi Cashmere haven鈥檛 been enough to buoy revenues overall. The AI angle: Snap鈥檚 other recent venture is a chatbot called My AI, which rolled out in April. New ad formats were announced yesterday, which would leverage data from conversations with My AI to deliver sponsored links.

Luxury power players are asserting greater control over distribution, emphasizing direct-to-consumer (D2C) channels and more selective retail partnerships. This allows them to maintain pricing power, while also securing exclusivity and profit margins.

So I think just trying to be a huge success solely through D2C is going to be really, really difficult. Blake Droesch:. Yeah. And I think D2C is a model that has worked for a lot of product categories, but in CPG, it's struggled. Even the bigger CPG conglomerates have struggled to develop direct to consumer channels.

Over a third (34%) of enterprise sellers, defined as larger brands, retailers, or parent companies with $5 million or more in annual revenue, say that Amazon is supplemental to their direct-to-consumer website, mainly used for visibility, per Jungle Scout鈥檚 鈥淭he State of the Amazon Seller 2024鈥� report. However, nearly as many (32%) say that Amazon is their main retail channel where most sales occur.

The media and entertainment industries are nearly done with the first phases of their direct-to-consumer (D2C) revolutions. But differences in distribution dynamics will temper ad spending growth for media more than for entertainment. 3 KEY QUESTIONS THIS REPORT WILL ANSWER. How much will these two industries spend on advertising in 2022? Where will those budgets go?

Delivery apps, quick-service restaurants (QSRs), D2C brands, and media platforms all offer subscriptions that vie for a share of consumers鈥� budgets. This has caused subscription fatigue for many people. The long-term outlook is murky, particularly amid economic uncertainty.

We expect more direct-to-consumer retailers to invest in brick-and-mortar this year, as Warby Parker and Allbirds did in 2022. Other expansions include dollar and discount stores (Dollar General plans to open 1,050 this year) and fast-fashion brands (Primark expanding in the US). But not all brick-and-mortar locations are enjoying this resurgence.

Profitability pressures and the need to reach more consumers efficiently has weakened resistance to selling on the platform, even among D2C brands. Over the past year, Victoria鈥檚 Secret and Gap Inc. both began testing the waters by selling a limited range of goods on Amazon. They have since expanded their selections on their marketplace storefronts.

Truepill began as a direct-to-consumer (D2C) online pharmacy but later added enterprise clients that use its platform. In April, it pulled out of ADHD medication startup Ahead, which subsequently shut down. In June, Truepill laid off 15% of its workforce to focus on profitability rather than growth. Some D2C companies are also hitting the reset button:.