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Shifting dynamics: DTC brands embrace wholesale amid retail evolution

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ConsumerGeniuses

The retail landscape has seen a notable shift as Direct-to-Consumer (DTC) brands, once thriving during the pandemic, now swiftly embrace wholesale ventures. Companies like Nike and Levi’s redirect focus to DTC channels while newer brands like Gorgie, Loops, and Futurewise enter major retail chains. Although the surge in DTC initially capitalized on low online customer acquisition costs, evolving e-commerce trends prompt brands to adopt wholesale strategies earlier. Investors now value wholesale and retail ties as indicators of promising brands, urging exploration of this avenue sooner. Despite this shift, DTC remains crucial, offering insights that shape wholesale strategies. Feedback from DTC channels refines retail offerings based on direct customer input for brands like Fishwife and Loops. Strong DTC communities drive brand awareness, attracting retail giants like Fly By Jing, underscoring the importance of maintaining an online presence alongside wholesale expansions.

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