November 3, 2020
Los Gatos, CA. After already publishing a whitepaper with focus on European D2C brands in 2019, Arvato Supply Chain Solutions now analyzes D2C brands in the U.S. Arvato’s U.S. outlook from literally behind-the-scenes provides a fresh new region centric outlook in the study “U.S. Direct-to-Consumer Brands Decoded”. The supply chain management and e-commerce provider performed a thorough analysis of 50 brands in the current D2C market, that has changed so much since its conception a decade ago.
This year’s U.S. direct-to-consumer (D2C) brand market is more competitive than ever. Fierce competition has led to some innovative brands, such as Kylie Cosmetics and Away, to focus on dynamic social media strategies, such as influencer programs, to overshadow the growing expense of social media ads.
These brands produce informative, unique, and personal feeling content to really build a connection and capture their target market attention. This more natural form of social media marketing helps the brand to create bonds, connect, and provides an inexpensive way of acquiring customers.
Other D2C brands are doing very positive things to give back to their communities. Bombas has donated over 35 million pairs of socks to the U.S. homeless populations. Rothy’s also supports their community with plastic pollution partnerships, donation programs, and supporting the Covid-19 pandemic relief.
The biggest change in the world as we know it has seen, have been the repercussions of the Covid-19 pandemic. This has driven customers to online shopping, in order to be safe. Brands that are used to selling primarily from brick and mortar stores, have got to diversify to include online and multichannel shopping solutions or risk becoming extinct.
“COVID-19 has changed retail forever and the shift of consumer spend to e-commerce is accelerating. In social media D2C brands are outperforming many traditional brands, especially in the beauty, care and apparel categories. These brands are well-positioned to increase their market share in a post-COVID world” states Konstantin Bohmeyer, VP of Consumer Products at Arvato Supply Chain Solutions in North America.
D2C brands are always going to be able to have a direct line to consumers, by utilizing social media marketing. This year, these brands are forced to come up with more innovative solutions than ever. Some resourceful D2C brands have been using concepts, such as digital events and live streaming.
These concepts are sometimes the only way these brands can showcase their products, after their usual ways of marketing in retail and pop-up stores is declining, because of the pandemic. Social media advertising also got a lot more lucrative, with cost per thousand (CPM) ad pricing for Facebook and Instagram by as much as 50%, at the height of the pandemic.
TikTok was the most downloaded app in 2020 and has the potential to keep leading D2C fashion brands marketing innovation, as long as the company has permission to keep operating in the U.S. D2C brands are continuously using their Google Analytics to lead their informed marketing efforts and they can be found utilizing innovative techniques, such as email automation to deliver them.
Download for free Arvato’s study “U.S. Direct-to-Consumer Brands Decoded” now to find out how “The Design Lovers”, “The Innovators”, “The Socially Engaged” and “The Optimizers” differ in the top 50 D2C brands studied.
About Arvato Supply Chain Solutions
Arvato Supply Chain Solutions is the trusted supply chain and logistics partner for the most popular tech, fashion, beauty and consumer lifestyle brands in the world. As a leading global 3PL, Arvato Supply Chain Solutions operates and optimizes complex supply chains worldwide, in order to continuously maximize CSAT and exceed fulfillment compliance standards.
Arvato implements comprehensive full-service fulfillment solutions in e-commerce, digital commerce, omnichannel, retail logistics, B2C and marketplace fulfillment. Arvato has 15,000 employees and is one of the world leaders in supply chain management, with 85 fulfillment locations in over 20 countries including the Americas, EMEA and APAC. All regions run on a single IT backbone which provides you with a truly global supply chain visibility.
Originally posted on CSCMP’s Supply Chain Quarterly.