What is DTC? North American market DTC research report

07/04/2021

The DTC model, or Ddirect-to-customer (hereinafter referred to as "DTC"), has long been a familiar concept. As the DTC model has been evolving and upgrading. In recent years, a large number of retailers at home and abroad have adopted the DTC model, bypassing middlemen and with advanced technology and personalized service, and have been expected to establish a firm and close relationship with consumers.

From "products going to sea" to "brand going to sea", from simply selling goods to brand as the soul, Chinese brands going to sea are going through a round of upgrading to enter the overseas market, the pursuit of a new growth space.

Many overseas enterprises focus on the DTC brand to do more long-term business.In the United States, the birthplace of the concept of DTC, consumers have traditionally accepted the traditional consumption habits of direct selling and mail order, which provides an opportunity for DTC brands to bypass the third-party e-commerce platforms, distributors, large retail stores and other traditional sales channels, providing an opportunity to overtake.

In order to learn more about the advantage of DTC marketing mode, and how to use concept of DTC to stimulate customer loyalty and increase income from brand advocates, global payments company Adyen consultancy, with the United States, 451 Research examined more than 200 north American local companies, cooperation has released the DTC strategy how to optimize business agility and digital experiences "report.In the rapidly developing North American market, DTC sales increased against the trend

According to the study, the DTC model has great potential in the U.S. and represents a $165 billion market opportunity in North America alone. During the epidemic period, the DTC market ushered in a new round of dividend period due to the positive influence brought by the home-based economy. Sixty-five percent of North American companies surveyed said that the percentage of sales generated through DTC channels has steadily increased over the past year.

The fastest growing channels are brand owned apps, mobile web pages and PC browsers, followed by social e-commerce, brand free physical stores and other offline channels (such as pop-up stores).

DTC operation mode benefits both merchants and consumers, but the industry competition is also fierce. Want to get the favour of consumer needs with appropriate operating strategies and the high quality service, the safe and convenient payment experience is one of the important factors that affect consumers' brand loyalty, 42% of consumers said don't consider will buy from payment limit too many brands, but actually a lot of DTC brand did not provide a good payment services.

Next, we will make a detailed analysis of the status quo and trend of DTC mode in the North American market, hoping to serve as a reference for Chinese merchants when formulating brand DTC overseas strategy.