When was the last time you bought a pantry item from a global CPG brand? Perhaps it was a can of soda or a box of cereal. With 40% of sales growth for CPG brands coming from direct-to-consumer channels, it’s no wonder most consumers can think of recent instances where they’ve bought directly from a global brand, and most marketers can reference the DTC growth successes of a Fortune 500 CPG brand because we read it in an article or case study somewhere.
It’s no secret that the usual suspects are the ones who benefit most from DTC. That’s right, the big box brands. But why is this?
For starters, a presumptive cost of entry can lead smaller brands to feel unable to take on more responsibility for their commerce experience. In reality, DTC is an approach for everyone; big or small and here’s why.
Through a scaled set of options, Shopify technology has enabled a democratized eCommerce space. Now, brands of all sizes can determine the level of control they want in crafting their DTC brand experience. Whether that’s through storytelling or a refined consumer experience, brands of all sizes have the opportunity to determine the degree of focus and energy they want to give to the marketing levers they believe will yield the best results.
Shopify estimated that nearly 80% of all merchants on their platform saw revenue growth in 2020, signalling a fundamental shift in the ways commerce plays out in society. Discussions on what new behaviours will be sticky in a post-Covid world neglect the broader observation of the shift in priorities that have been slowly but steadily shedding the ‘fad’ moniker. A full 19% of people signed up for their first subscription in 2020, with no indication that they intend to eventually unsubscribe.
What does this mean for brands? It means to succeed in 2021 and beyond, brands of all sizes will need to refocus their attention towards their owned commerce experiences and take full ownership over their digital revenue drivers. Through effective DTC practices, the brands that stand out will be those that are able to craft unique online brand experiences and bring consumers into their brand in an authentic way. One thing is for sure, platforms like Shopify are closing the gap and democratizing the paths to any brands best consumer.
Contact: Simren Deogun