Born Online: Unwrapping the Direct to Consumer brands reshaping retail.
The IAB have teamed up with research consultancy MTM to take an in-depth look at the Direct to Consumer (DTC) market. These digital born brands are reshaping the world of retail and bypassing established routes to market to offer convenient, high-quality, personalised products.
The report identifies 50 of the UK’s leading DTC brands, explores key behaviours and preferences of DTC consumers, shines a spotlight on the founders and explores how agency partners and media owners can best work with DTC clients.
What makes DTC consumers different?
In a survey of 2,000 people, conducted with MTM, the IAB gained some key insights and a clear picture of DTC customers’ shared traits and values.
Today’s DTC customers have a number of distinguishing factors and share many behaviours and preferences. They are likely to be early adopters, tell people about the brands they love and pay extra for convenience, personalisation and ethical products.
DTC brands have entered the mainstream
97% of the UK online population are aware of at least one of the 50 leading DTC brands. Some 39% of the UK online population have purchased from one or more of the 50 leading DTC brands. 10% have in fact purchased from five or more of these DTC brands. Such customers tend to be both early adopters and influential on their friends purchase behaviour, according to the report completed in Q4 2019.
“DTC businesses are agile in response to consumer feedback and utilise analytics to forge authentic relationships with customers. While brand growth is a key goal, protecting these unique characteristics is also a priority. Working with partners that are open to a test and learn approach, support data-driven marketing and help to amplify our customer-centric ethos is crucial.”
Kate Huang, Chief Marketing Officer, Callaly