Even before COVID-19 lockdowns, direct-to-consumer (DTC) marketing was picking up steam, with brands such as Harry’s, Bonobos, and Allbirds becoming household names and trusted sources of everyday needs. But the pandemic has taken this trend to a new level – with stark consequences for traditional, store-centric brands. A new What’s Next 4 Consumers study from GfK shows that nearly two-thirds (62%) of US consumers have purchased DTC brands in the past 6 months, and almost 4 in 10 (37%) say they will buy more DTC products and services after the pandemic. Recent DTC brand purchase is particularly high among key target groups – young consumers, those with graduate or professional degrees, and those with annual incomes in the $75K to $149K range.(See Chart 1)
Even more telling is the fact that US consumers are choosing DTC brands over traditional on several fronts. A remarkable 70% told GfK that they have switched from a traditional brand to a DTC one in at least one category – and huge numbers see DTC brands as superior to mainstream ones on a variety of key benefits, from convenience to innovation. (See Chart 2.)
These levels are higher across the board among those who have actually purchased DTC products in the past 6 months.
70% told GfK that they have switched from a traditional brand to a DTC one
