蘑菇AV

The years of high double-digit growth for US direct-to-consumer (D2C) ecommerce sales have ended.

After boosting the D2C model over the last decade, digitally native vertical brands (DNVBs) face a slowing market, with sales growth declining every year through the end of our forecast period in 2028. That means acquiring customers and revenue can鈥檛 solely be done through online channels such as social media, as DNVBs have relied on in the past. Here are three ways DNVBs can continue the momentum of their digital buzz.

The news: Direct-to-consumer (D2C) brand Quince raised $120 million in a Series C funding round co-led by Notable Capital and Wellington Management. Quince has raised more than $350 million in funding to date, per PitchBook. A sweet spot: The latest funding round validates the retailer鈥檚 brand positioning.

Comcast CEO Brian Roberts noted that 鈥�98% of the viewing on Peacock does not include the spun networks,鈥� adding those assets 鈥渘eed their own direct-to-consumer digital initiatives and focus and investment.鈥�. While networks like CNBC, MSNBC, and USA still generate strong cash flow and ad revenues, their long-term future depends on finding new ways to engage audiences.

Embedding direct-to-consumer products into HR software platforms such as payroll systems, benefits administration tools, and employee self-service portals, making it easy for employees to access and enroll in coverage. Next steps: To learn more about offering life insurance products on partners鈥� platforms, read our  鈥淓mbedded Life Insurance鈥� report next.

Additionally, there is mounting concern among doctors who view the 鈥渘on-traditional" (e.g., D2C companies, telehealth platforms) weight loss drug market as problematic, according to a December 2024 Sermo survey.

Our take: Kohl鈥檚 is in a tough position, facing fierce competition from off-price retailers, direct-to-consumer brands, and mass merchants like Amazon. To fend off those merchants, Buchanan must sharply define Kohl鈥檚 own identity, rather than relying on the strength and brand equity of other brands to bolster its appeal.

And Vice President-elect JD Vance said on the campaign trail that he would explore stricter regulations of D2C pharma advertising. Bills to restrict or prohibit D2C drug ads have been introduced in the past yet typically lacked support from GOP lawmakers. But if a Republican-led administration pushes for a ban, previously hesitant members of Congress could be swayed.

The news: Eli Lilly joined forces with direct-to-consumer (D2C) telehealth company Ro to offer single-dose vials of its GLP-1 Zepbound to Ro patients with obesity. Previously, this reduced price form of the medication was only available on the drugmaker鈥檚 D2C website for its LillyDirect self-pay pharmacy (meaning insurance isn鈥檛 accepted).

Amazon Clinic, a D2C telehealth venture, is now called Amazon One Medical Pay-per-visit. The entity recently pushed further into the D2C healthcare market to include upfront, fixed pricing for the treatment of five conditions鈥攕kin care, hair loss, erectile dysfunction, eyelash growth, and motion sickness.

New healthcare and pharma D2C business ventures will emerge in 2025. They鈥檒l join a cohort of established and nontraditional industry players that have recently entered the D2C healthcare market. The new model aims to reach more customers while generating revenues through an alternative sales channel. Some examples of the sector鈥檚 D2C push include:. Drug developers, including Eli Lilly and Pfizer.

Direct-to-consumer ARPU: $11.99 for US and Canada; $4.05 for other markets. Global D2C ARPU for the quarter increased by 1% YoY to $7.84 but was lower than last quarter鈥檚 $8.00. Overall financials: Total revenues declined 4% to $9.62 billion as theatrical revenues plunged 40%, and adjusted EBITDA for Warner Bros. Discovery鈥檚 entire business dropped 19% to $2.41 billion.

Consumer packaged goods (CPG) brands have attempted to break into D2C ecommerce in recent years, to varying degrees of success. How can they avoid unprofitable strategies and develop a viable D2C ecommerce channel?

The news: Amazon鈥檚 direct-to-consumer (D2C) telehealth business expanded its services to include upfront, fixed pricing for the treatment of five conditions鈥攕kin care, hair loss, erectile dysfunction (ED), eyelash growth, and motion sickness. Why it matters: The new offering places Amazon One Medical Pay-per-visit in direct competition with D2C healthcare companies such as Hims & Hers and Ro.

For August, a digitally native direct-to-consumer brand of period care products, TikTok gives more than it takes down. For example, in January 2020, its launch video was immediately removed by the platform. 鈥淚 still get videos taken down for what the app believes is graphic content,鈥� said August co-founder Nadya Okamoto. Still, Okamoto credits TikTok for helping her cultivate a community of nearly 4.5 million followers across her personal and brand TikTok accounts, as well as allowing her to open a dialogue for authentic marketing.

D2C ecommerce will continue to grow at above-average rates. But that growth will be driven by established brands selling directly鈥攏ot digitally native brands.

Bringing sexy back: Victoria鈥檚 Secret has been playing defense for a few years as D2C brands like Parade and celebrity-backed labels like Fenty took the limelight. But the company recently reinserted itself back into the cultural conversation thanks to a familiar playbook.

But attempts to reign in D2C drug advertising as well as anti-vaccine rhetoric won鈥檛 go over well with Big Pharma. We鈥檒l be closely monitoring the confirmations of Trump鈥檚 picks for key federal health agencies in early 2025.

So I have the same ingredients in different proportions, and I just throw in the leadership piece into the D2C strategy. So I guess it's sort of similar.

Could pharma D2C advertising be reined in? Incoming vice president JD Vance recently said on a podcast that he鈥檚 a big critic of pharma advertising. Vance wasn鈥檛 concerned with drug ads鈥� influence on consumers but rather that media companies don鈥檛 appropriately investigate the drug industry since they rely so heavily on Big Pharma鈥檚 ad dollars.

In April, Headspace rolled out mental health coaching for its direct-to-consumer subscriber base, through which users can access one-on-one support for help managing stressful situations and improving emotional resilience. And just last month, the company followed that up by launching Ebb, an AI companion integrated into its app that provides personalized emotional support to members.

Juice Media, which represents DSC and other direct-to-consumer brands, said shoppable ads could take up as much as 20% of budgets. Many buyers noted their interest and uncertainty, saying the format still needs to prove its value before securing further budget commitments.