The ABCs of DTC

After decades of dividing the world of retail between B2C and B2B companies, a new acronym crops up that’s getting a lot of ink in the business press: DTC, or direct-to-consumer. What is that exactly? And how does that differ from B2C or business to consumer?

It’s easy to see why people conflate B2C and DTC as they both sell directly to consumers, but that’s misleading. Stores like Ann Taylor and Brooks Brothers have been selling directly to consumers for decades, but they don’t seem to fit the new concept of what “direct-to-consumer” is. To hear the press tell it, DTC brands are hot-shot companies that are disrupting ecommerce as we know it. The Interactive Advertising Bureau (IAB) calls them “the brands of the 21st century economy.” What makes them special? Why are global brands like Unilever paying $1 billion for Dollar Shave Club?

DTC brands deserve all the attention they’re getting — 41% of millennial’s buy most or all of their products directly from brands. Although DTC brands account for just 9.4% of all retail sales, millennial shopping preferences have the potential to take a big chunk out of the incumbent brand’s market share.

This eBook — The ABCs of DTC — explains what DTC brands are, why they’re successful, and what makes a brand a true DTC enterprise.

 

 

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