Marketing Statistics 101: The Current State of D2C Sales

The direct-to-consumer (D2C) strategy refers to businesses selling products or services to customers without the use of a middle party. The third-party can include wholesalers and retailers.  

According to an eMarketer forecast on D2C buyers, e-commerce purchases will amount to 46.3% by the end of 2021.

There are growing pains as well, according to the research. While the number of digital D2C buyers is experiencing a steady increase over the years, there is also a decline in percentage change when it comes to the rate of growth. The change between 2018 and 2019, for example, went from 20% to 17.8%.

The slowing down of the D2C space is also reflected in a report by Diffusion PR. According to the findings, 81% of users expected to make at least one purchase from D2C brands in 2018. Meanwhile, 59% had the same expectation in 2019. In addition, while 2018 found that 33% of users made at least 40% of their purchases from D2C brands, 2019 was at 22%.

There are various explanations for this decline. According to Epsilon’s findings, 58% of the D2C brands surveyed believe the biggest challenge comes from copycat competitors. Meanwhile, the ability to retain customers over a five year period was at 34%. The struggle to offer unique products followed closely behind at 32%. 

If businesses wish to thrive, they must learn to adapt to these changing D2C conditions. Businesses can do this in various ways. This can include thorough market research in terms of using the appropriate advertising techniques, figuring out how to maintain their customer base while gaining new customers, as well as expanding on a global scale to reach different markets.  

D2C brands should also carefully consider their long-term goals. According to the 2019 study by the Interactive Advertising Bureau, 34% of founders had the long-term goal of global expansion. Meanwhile, 31% of them believed that establishing a new category of need was important. Opening brick-and-mortar stores was also a goal among 30% of respondents. 

Along with this consideration, D2C brands should think about their investment in critical business functions. This encompasses the level of customer service provided, how marketing resources are distributed, and the development of creative content. These aspects take a brand to the next level, as they can increase customer retention, raise brand awareness, as well as improve a business’ reputation. 

Choosing a team of professionals to help reach these goals in an efficient and cost-effective manner is a step in the right direction. Let Find Your Audience be your marketing partner. We specialize in thorough market research and performance-driven strategies to build, enhance, and support your business. 

To reach Find Your Audience, call 647-479-0688. You can also email the team at hi@findyouraudience.online.

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