Direct-to-customer

Direct-to-customer (DTC) refers to a business model where companies sell their products or services directly to consumers without using intermediaries like wholesalers, retailers, or distributors. This approach often involves online sales, but can also include physical stores owned and operated by the brand. DTC brands typically control the entire customer experience, from product design and manufacturing to marketing, sales, and fulfillment. This allows for greater control over branding, pricing, and customer relationships, enabling them to gather valuable customer data and build strong brand loyalty.

Direct-to-customer meaning with examples

• Warby Parker, a DTC eyewear brand, revolutionized the industry by offering stylish, affordable glasses directly to consumers online, bypassing traditional retailers. They invested in a user-friendly website, a try-at-home program, and a strong social media presence to build brand awareness and drive sales.
• Casper, a DTC mattress company, disrupted the bedding market by focusing on a single, universally-appealing mattress design sold exclusively online. Their simple ordering process, hassle-free returns, and strong brand story built customer trust and loyalty.
• Dollar Shave Club, a DTC subscription service, provides razors and grooming products directly to consumers through a convenient online platform. Their humorous marketing campaigns, competitive pricing, and focus on customer convenience helped them acquire a massive subscriber base.
• Many smaller brands also use the DTC model. A local clothing designer selling handmade garments directly through an online store, craft fairs, or a small boutique is a strong example of a DTC model offering unique, quality goods.