Direct-to-Consumer Selling Trends to Watch in 2020

Direct-to-Consumer (D2C) selling is gaining popularity in retail and CPG today, as brands are embracing cost-effective and safer modes of distribution to the consumer. Check out what D2C selling is all about and what are the rising market trends in 2020.

What is Direct-to-Consumer Selling?

Direct-to-Consumer retail is a fast-track method of reaching consumers, skipping middlemen involved in the distribution process.

Traditional Retail VS Direct-to-Consumer Retail

Traditional Retail

Manufacturer

Wholesaler

Distributor

Retailer

Consumer

Direct-to-Consumer Retail

Manufacturer

Advertising / Website

Consumer

What are the Benefits of the D2C Model?

Cost-effective distribution

Fortifies brand-consumer relationship

Faster last-mile operations

Top Trends In the Direct-to-Consumer Market

D2C E-commerce market is soaring

In 2019, D2C E-commerce sales reached $14.28 billion in the US. In 2020, eMarketer forecasts that sales will grow by 24.3%, to $17.75 billion.

Consumers want to buy directly from brands

59% of consumers prefer to search for products directly on the manufacturer’s website, with 55% preferring to make purchases the same way.

Personalized shopping offers are a must

Direct-to-Consumer brands are using the power of analytics to study consumer shopping, search, and browsing history to offer personalized product options, delivery timings, and customer experience.

Safe doorstep delivery is a top priority

73.6% of consumers report that efficient doorstep delivery is most important to the overall shopping experience.

Subscription-based selling is on the rise

By 2023, 75% of D2C brands are expected to offer subscription services. Subscription models allow brands to sell a monthly bundle of regularly bought staples and household products to consumers.

Consumers seek greater visibility

51% of consumers want real-time visibility into the status of their orders and expect to be well-informed about their order shipping, transit, and delivery details.

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