Growth of D2C Ecommerce: US D2C ecommerce sales are expected to reach $155.69 billion in 2022, accounting for 15.1% of total ecommerce sales. Established brands will dominate, making up 75.5% of this market.
Established Brands vs. Digitally Native Brands (DNVBs): Established brands like Nike and Adidas are seeing faster growth in D2C sales compared to DNVBs such as Warby Parker and Casper. Nike’s D2C strategy exemplifies success with a 36.8% share of total revenues in 2021 from D2C sales.
Challenges and Opportunities: While DNVBs face scaling challenges and increased costs, established brands benefit from higher margins and greater brand control. However, rising digital ad costs and supply chain issues are common challenges.
Strategies for Success: Both DNVBs and established brands need to focus on brand differentiation, leveraging influencers, and optimizing the customer experience. Established brands can learn from DNVBs’ agility and customer-centric approaches, while DNVBs can benefit from traditional brand-building techniques.
Market Dynamics: The D2C landscape is becoming more competitive with both segments adapting to changes in consumer behavior, such as increased emphasis on sustainability, DEI, and evolving shopping habits influenced by social media platforms like TikTok.