There are three main advantages for the business: bringing the brand and the consumer closer together, better understanding the conversion journey (thanks to related data collection), and reducing distribution costs by eliminating the third-party player.
Though this method is not new, the rise of e-commerce and digital media has brought it to the forefront of brand strategies. Fledgling brands are innovating in the matter, such as Feed in the food industry or Dollar Shave Club in health and beauty. Veteran groups such as L’Oreal or Unilever are now turning to DTC to foster a direct relationship with their consumers and find an alternative to traditional distribution models.
