Last year, 60% of Americans bought DTC brand products! Many big brands have emerged

It is learned that according to the latest DTC Brand Purchase Intention Index for 2022 released by Diffusion, 60% of Americans purchased DTC brand products last year. This proportion has decreased compared to 2020, when 79% of consumers shopped from DTC brands.

But the study pointed out that once the epidemic quarantine is completely over, it may still be difficult for DTC brands to compete with traditional retailers, and sales will mostly rebound to pre-epidemic levels.

According to the U.S. Bureau of Labor Statistics (BLS), at the peak of the epidemic, online retailers accounted for 20% of total retail spending in the United States, up from 14% before the epidemic. As more and more people begin to spend more time on online shopping, the DTC brand track has produced many big brands.

For example, eco-friendly sneaker brand Allbirds (BIRD), eyewear brand Warby Parker (WRBY), and Dollar Shave Club are all DTC companies, some of which are valued at more than $1 billion. Men's clothing brand Bonobos is big enough to be acquired by Walmart (WMT)

DTC brands sell without third-party retailers or physical stores, and typically reach their audience through activities such as Internet advertising. This model can lower prices and, by removing the middleman, give you more control over the user experience.

Given these benefits, well-known brands including Nike (NIKE), which has pulled its products from multiple retail chains in favor of selling more directly to its loyal audience through its apps, have also taken steps to do more DTC business.

Editor ✎ Xiao Zhu/

Disclaimer: This article is copyrighted and may not be reproduced without permission.