"where I worked in the early 2000s in its rather pioneering e-commerce business (which launched, among other things, the first click and collect service). Argos was jostling with Tesco for first place at Christmas, and I've found myself reflecting on why DTC has become such a major issue for several sectors that have not traditionally had a direct path to purchase over the last few years."
"Another of my former employers, Unilever, is one of the companies most visibly acquiring DTC brands, having bought Dollar Shave Club several years ago, and recently Graze. Why do it? Well, among the reasons are that it is a way to bring a business closer to the consumer, it yields significant first party data which most FMCGs lack, and futureproofs against over-reliance on Amazon (which can be an expensive luxury, and one reason why many brands have been reluctant to work with the strategy,"
Direct-to-consumer marketing has gained prominence in FMCG/CPG as companies pursue closer relationships with consumers and access to first-party data. Implementing a DTC strategy requires new or expanded skills despite the underlying concepts being familiar from transactional websites and click-and-collect services. Large firms are acquiring DTC brands to capture data, reduce dependence on platforms like Amazon, and access growth across e-commerce channels. E-commerce remains one of the few growth areas in developed markets while smaller DTC challengers are eroding market share. Businesses that ignore these trends risk ceding customers and data advantages to more direct competitors.
Read at The Drum
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