Are brands bypassing stores? A new survey says 'yes' they are: 40% of Americans shopped directly from a brand in the past year, according a Diffussion survey.
Shoppers are choosing to bypass stores because the brands are undercutting them on prices, and offering faster and cheaper shipping.
How are brands getting in front of customers? Answer: Facebook and Instagram. A shopper visits a retailer's website for brand X, then Facebook puts a tracking pixel on the shopper, and then the shopper sees an ad for brand X when they visit Facebook. Viola: the shopper just bypassed the retailer.
The combination of brand websites selling direct, social media, and mobile phones in shoppers' pockets has created the perfect storm for retailers. Stores are more likely to get passed by.
RetailDive shares this info:
- Forty percent of Americans have made a purchase from direct-to-consumer (DTC) brands in the last year, according to a new survey from communications agency Diffusion.
- Notable categories for DTC purchasing over traditional retail included health and beauty products (35%), apparel (34%), and tech and gadgets (26%)
- The leading reason for choosing DTC over a traditional retailer was cost (48%), followed by fast, free shipping and easy returns (43%).
- Consumers reported hearing about DTC brands via social media or influencers (19%), print or online ads (18%), word of mouth from friends (15%), or print or online reviews (14%).