DTC is now a sustainable alternative retail strategy, says GlobalData

Direct-to-consumer (DTC) retail models are coming to light as a dependable strategy following on from the coronavirus era, according to research by GlobalData.

Lockdowns in global markets have given brands the impetus to seek a variation in their methods to sell products to customers, leading many firms to try out home-delivery options for the first time – a trend that is expected to carry on and multiply once the pandemic is over.

GolbalData’s figures demonstrate significant changes in consumer purchasing habits. The firm’s June survey showed 84 per cent of respondents feel factors of trust, safety and familiarity influence their buying decisions. A full 43 per cent of purchasers signified they make the effort to choose products only from preferred brands – suggesting that such brands could still reach their target market through alternative sales channels.

“The development of comfort seeking is a trend reversal,” said GlobalData retail analyst Hrishabh Kashyap. “Before Covid-19, we saw an increasing number of experimental consumers who like to try out new and different things and were not so concerned about the brand or retailer while experimenting.


“However, during Covid-19 crisis, the trend has been reversed as consumers revert back to traditionally popular products and are sticking to their trusted brands.

“While the pandemic continues to unfold, brands which consumers derive comfort from and trust, seem to perform well. Thus, it becomes extremely important for the brands to reach out to consumers and express themselves through innovative products and service offerings and win their trust for the future.”

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