The direct-to-consumer movement: How can CPG brands tap into this space

Across the last decade, many of the world’s leading CPG brands have surfed the direct-to-consumer (DTC) wave by acquiring DTC competitors, launching new DTC brands or selling existing brands through DTC channels. 

With greater control, higher margins and stronger customer relationships, the direct-to-consumer model is a tempting one. Despite this, it isn’t being leveraged across the CPG space and is underrepresented in the growth agenda of the industry. 

In fact, only 16% of CPG brands rate DTC as a key consideration for top-line growth. Despite the fact DTC is growing in size by up to 13% each year in the CPG space. 

The growing impact of the movement is clear. Gillette's share of the US razor market fell from about 70% to under 50% in the course of a decade, thanks to DTC competitors like Dollar Shave Club and Harry's. On the flip side, L’Oreal increased its e-commerce sales by 25.7% by expanding its D2C channel across different brands and countries.

As e-commerce continues to grow post-pandemic and the value of first-party data booms, how can CPG brands effectively tap into the DTC space and what should adjacent categories, like grocery, delivery and QSR brands, watch out for?

Watch our webinar to find out.