The 10 best direct to consumer business model examples.
These days brands are cutting out the middlemen by selling directly to the consumer,
in this article we will look at why this trend is so popular and,
give you the 10 best examples of brands who are making the direct consumer model work,
do you remember the waves warby parker created in the eyewear market space in 2010,
when they started selling glasses directly to consumers online,
or how about when the founders of dollar shave club got together to express their frustration about the high costs of razor blades and decided to launch a company that sold affordable blades straight to online consumers,
both of these companies are connecting directly with their customers online as part of this growing direct to consumer trend.
So what's this growing trend all
about the direct to consumer trend also known as disintermediation means
businesses are bypassing traditional intermediaries in the supply chain and
connect connecting directly with end consumers,
retailers
wholesalers
distributors and
advertisers are skipped over as brands bypass the middleman,
Direct to consumer channels are not new,
after all we've had farmers markets forever,
but now there's a huge number of companies in a wide variety of sectors embracing the direct to consumer trend,
not only are new businesses cropping up specifically to sell to consumers directly established brands,
like l'oreal and disney are also starting to sell their products directly to customers,
so why is this trend happening right now,
now more than ever especially post covert
customers are heading online to purchase everything from
groceries to
clothes to
travel and
vacations.
that means it's easier for companies to eliminate intermediary businesses that have previously facilitated the customer journey.
so let's look at some of my favorite examples of brands that are building a strong direct to consumer channel,
Tesla
Today you can skip the dealership & buy a tesla directly online,
as other car companies look to
follow suit large vehicle retailers that sell via showrooms are already looking
at how this trend is threatening their business model.
Warby parker
warby parker not only offers customer the opportunity to buy glasses online,
they also took their direct to
consumer game to the next level by introducing virtual try on solutions using
augmented reality apps,
Gymshark
This fitness and accessory brand got its start as a one-man operation and is now one of the fastest growing businesses in the uk.
My Green Mattress
A company that handcrafts organic or
natural mattresses and sells them from their website,
Rent The Runway
Rent the runway is a direct to
consumer platform that allows customers to rent subscribe or buy designer
accessories and apparel,
All Birds
A company that sells eco-friendly
footwear and apparel their first shoe the world runner was made from new
zealand's superfine merino wool.
Away
Its founder started the company in 2015 with the goal of creating and selling the perfect suitcase,
now they sell a wide range of
luggage and travel accessories.
Barkbox
This company combines the direct to consumer trend end the servitization trend by providing doc treats and toys as a subscription service,
subscribers get a pre-packed themed
box of goodies every month.
L'oreal
This makeup and skin care giant is taking back control of customer interactions from retailers,
by beefing up their direct
e-commerce channels.
The company's tech incubator has
created innovations like purso a smart device that lets customers customize
their own foundations lipsticks and skin care formulas at home.
Disney
Yes even mickey has gone direct to consumer.
Disney's content streaming platform disney plus distributes content directly to viewers across the world.
Survey by diffusion indicated that 81 of american consumers said that they plan to buy from a direct to consumer brand by 2023.
so whether you are a product or service business an intermediary or a supplier,
you can be sure this growing direct to consumer business model will impact your business.
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