蘑菇AV

More creators are going direct-to-consumer to monetize. The way creators make money on social media reflects larger trends within the creator economy: Many are working to become less beholden to brands and social platforms to earn income. The number of creators with multiple revenue streams will continue to rise, especially as high-paying brand deals are now harder to come by.

D2C is an alluring option, but brands should also consider Amazon. D2C subscriptions give brands the most control over the customer experience and are a better avenue for strengthening customer loyalty. But many consumer packaged goods (CPG) brands have struggled to grow their D2C customer base, making Amazon and other marketplaces a viable second option. Sources. Numerator. PYMNTS.com. Recharge.

The news: Disney's direct-to-consumer streaming platforms, including Disney+, Hulu, and ESPN+, made notable strides in Q1, per the company鈥檚 Tuesday earnings report. The combined losses for these services dramatically narrowed to just $18 million, compared with a $659 million loss in the same period last year.

This brick-and-mortar expansion is a good way to lean more into direct-to-consumer (D2C) avenues and increase margins in a period when D2C have struggled to increase sales following explosive pandemic growth, our analyst Blake Droesch said. Listen to the full episode. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

D2Cs are investing in TikTok, but saving most spend for Google, Facebook. US D2C consumer packaged goods and beauty brands have divested some money from Facebook over the past few years, and ad spending on TikTok is on the rise, according to Rockerbox. The money that was going to Facebook has been moving to video.

Footwear brands鈥攍ike Aldo and Sorel鈥攈ave also turned D2C sales into a high-performance channel. For brands in certain categories, ecommerce is essential. Key to mastering the channel is designing features that make online shopping easy, like free and easy returns, frictionless payment, and rewards for shopping online. How Canada compares.

Direct-to-consumer (D2C) testing startups like Everlywell, LetsGetChecked, Kindbody, and Ro are jostling for consumers鈥� attention on social media. Predictions. Next year will bring a raft of mergers and acquisitions, particularly among the D2C brands that are concentrated on specific areas鈥攍ike sexual health. Telehealth companies will be a major buyer segment.

Victoria鈥檚 Secret announced plans to buy intimates direct-to-consumer (D2C) retailer Adore Me, a brand known for inclusive sizing and body positivity, for $400 million. The deal was one part of a broader push by Victoria鈥檚 Secret to overhaul its image. South Korean tech giant Naver announced plans to buy recommerce marketplace Poshmark for $1.2 billion as it seeks to establish a presence in the US.

Direct-to-consumer (D2C) basics retailer Everlane is cutting 17% of its corporate employees, D2C athletics brand Gymshark is laying off more than 7% of its staff, and subscription apparel retailer Stitch Fix is reducing its salaried headcount by 20%.

The news: As we predicted, Amazon launched Amazon Clinic, a direct-to-consumer (D2C) telehealth clinic, equipped to treat common ailments like acne, dandruff, and hypertension. How Amazon Clinic works: It鈥檚 a message-based service available to adults ages 18 to 64 who live in one of the 32 states the clinic can operate in. More states will be added in the future, Amazon promises.

The D2C play: Chewy, one of the fastest-growing large ecommerce companies in the US, will grow 11.0% this year. Other D2C brands like Bark and The Farmer鈥檚 Dog have gained popularity. 鈥淭hese smaller brands can really find their place by doing a lot of personalization, which I think works much better online,鈥� said Davidkhanian.

The news: Direct-to-consumer (D2C) telehealth company Hims & Hers Health published its 鈥淟et鈥檚 Talk 蘑菇AV Sex: The 2022 Report,鈥� billed as its first annual sex report. The data: The report uncovered nine myths and one truth about Americans鈥� attitudes and behaviors around sex and sexuality. While a provocative topic, the report isn鈥檛 exactly groundbreaking.

Some direct-to-consumer (D2C) natives have even taken to retail expansion to protect themselves against rising customer acquisition costs, while others are leaning into wholesale. Players like Poshmark have even been acquired after struggling with CAC while others, including Outdoor Voices, are still on the market for the very same reasons.

The definition of D2C is changing. Simeon Siegel, managing director and senior analyst at BMO Capital Markets, said in a Shoptalk panel that D2C is not a business model, but a strategy. Digitally native brands like Warby Parker and Allbirds created buzz for disrupting their respective industries. Now, they鈥檙e struggling to scale their businesses because they didn鈥檛 develop a multichannel approach.

D2C ecommerce sales were up 12.9% YoY, according to our March 2023 forecast. Better value for the price of a product is the No. 1 reason that US adults buy from D2C companies, per May 2023 data from SurveyMonkey. It鈥檚 likely that 2024 will see more of the same.

Creative uses also differ between small, independent, or D2C brands and larger tradition-bound brands, Willens said. Legacy brands have several generations of dos and don鈥檛s, brand guidelines, and multiple creative agencies, so they鈥檙e much less likely to deploy generative AI content as is.

Though digital native D2C brands like Allbirds and Warby Parker exploded onto the scene in the 2010s, they鈥檝e struggled to keep up momentum, often losing share to more established brands. This year, retail sales from digitally native brands will account for less than a quarter (24.3%) of D2C sales, per our forecast.

The trend: As more consumers reduce discretionary spending, digitally native direct-to-consumer (D2C) brands are shedding workers and growing their brick-and-mortar presences to keep their businesses viable amid economic volatility. Losses mount: Even in the best of times, digitally native brands have struggled to turn quick growth into a sustainable business.

Meta, in particular, took a big hit, said Lipsman, as direct-to-consumer (D2C) ad spend moved away from the platform to Google (34.9% of D2C ad spend in Q1 2021 versus 27.0% in Q1 2022). However, Lipsman warned that, despite D2C dollars shifting to Google, it may not be able to keep its grip on search advertising for long.

Non-endemic advertising is also attractive to D2C brands that want access to the eyeballs of a national retail network without having to fork over a chunk of its profits to the platform. How do I get started with non-endemic advertising? The first step is to research the retailers themselves and their shopper profiles. Do they match up to who you鈥檙e looking for as a customer?

In the telemental health space, D2C models are under growing financial pressure from higher therapist-related labor costs and the higher marketing spending needed to acquire new customers. Talkspace is in the process of pivoting from a D2C to a B2B model, selling its services to self-insured employers. That may be why B2B-focused Amwell is interested in buying it.

Among those struggling the most are direct-to-consumer (D2C) brands. These disruptors have lost their early online advantage and now, established brands account for more than 75% of US D2C sales. This year, established brands will grow US D2C ecommerce sales 22.6%, well ahead of the 17.5% growth projected for digitally native vertical brands (DNVBs).

Meanwhile, direct-to-consumer (D2C) companies are using subscriptions to engage with consumers. As many as 75% of D2C brands will have a subscription-based offering by 2023, according to PipeCandy and Rodeo. Focusing on convenience over novelty can help battle subscription fatigue.

Retailers would be wise to take advantage of their customers鈥� loyalty, especially amid the latest wave of popular D2C beauty brands. 鈥淭here [are so many beauty specialists, online specialists offering the same thing, so you really need to sort of work on that loyalty with your customers,鈥� said Perkins. Listen to the full episode. This was originally featured in the Retail Daily newsletter.