Direct-to-Consumer Is Dying. It's Time for a New Paradigm

In the past decade, storied brands like meal-replacement Huel and men's grooming company Harry's built multibillion-dollar retail businesses by using social media and digital-first advertising to sell directly to consumers online, without the need for middlemen. These brands were exemplars of a new form of retail, called direct-to-consumer (DTC). The global pandemic only accelerated this trend, with many high-street stores being forced to close and to keep driving sales by going direct to shoppers online. Some brands successfully navigated the transition, like outdoor pizza oven maker Ooni, whose sales exploded during lockdown, with annual revenue up from £13.7 million ($167 million) in 2019 to £52.7 million in 2020. Shoppers also adapted--around 60 percent purchased from a direct-to-consumer brand at least once in 2021.