DTC / D2C

Definition

DTC or D2C (Direct-to-Customer) refers to a business model where a company sells its products or services directly to consumers, bypassing traditional intermediaries such as wholesalers, distributors, and retailers.

Significance

The significance of DTC/D2C is that it allows companies to have greater control over their brand, customer experience, and data, as they own the entire sales process. This model also enables companies to establish a closer relationship with their customers, gather valuable feedback, and gain insights into consumer behavior. Additionally, DTC/D2C often leads to higher profit margins for companies, as they can eliminate markups and commissions from intermediaries.

Use Cases

Some popular use cases for DTC/D2C include E-commerce companies selling products directly to consumers through their own websites or mobile apps, food and beverage companies delivering fresh ingredients or ready-to-eat meals directly to consumers' homes and consumer packaged goods (CPG) companies selling their products directly to consumers. One example of a successful DTC/D2C company is Glossier, a beauty brand that has disrupted the traditional cosmetics industry by selling its products directly to consumers online and through its physical stores.