The direct-to-consumer (DTC) market is disrupting the global retail space like nothing we have seen before. For example, undisputed leader Gillette’s market share fell from 70% to 54% with the emergence out of nowhere of DTC brands, Harry's and Dollar Shave Club. Gymshark emerged from £0 to £176m sales in 8 years. Shopify, a DTC favoured eCommerce platform, share price grew from $17 to over $750 in 5 years.
Where’s the catch? Despite entry barriers being relatively low for DTC’s, why do 80% of them fail within 2 years?
Having a good product idea is simply not enough. A modern direct-to-consumer business typically has 20 vendors, 30+ employees, but relatively little experience managing vendors nor employees.
Trying to focus on growing the business, demand generation, customer experience, developing new products and content - while at the same time getting the most out of vendors and employees is incredibly challenging.
All parts need to work together in perfect harmony, and move with incredible speed and agility.
Just as quickly as a startup can boom, there is another waiting in the wings to take their place.