Direct-To-Consumer Sales Could Be The Next Big Thing In The US Retail Market
As the United States continues to be the epicenter of COVID-19 with over 5.44 million positive cases, the country's economy is deeply impacted, and the pressure on businesses to bring it back on track is huge. All 50 states in the country are getting back on their feet over the past few months. However, a lot has changed.
The pandemic has hit America's retail industry hard, especially brick-and-mortar retailers, throwing at them a bunch of tough challenges to battle, and some fast-emerging market trends to keep up with. But at the same time, it has also opened up some massive opportunities for retailers to grab and remain competitive despite the impact of COVID-19 on the market.
As millions of Americans stayed confined in their homes to practice social distancing and the government closed down all but essential retail outlets as a pandemic-prevention measure, mom-and-pop retail stores started losing revenues. The rise in online shopping of essentials, groceries, and food and beverages; and the growing demand for home-delivery services is pushing retailers to come out of the shell, and try innovative business models for sustainability.
Retailers have now come to realize that e-commerce is the most dependable anchor to hold on to and omnichannel is the future of the industry. Among the other trends that have popped up in retail since the outbreak of COVID-19 is the growing shift towards direct-to-consumer sales by retail businesses, consumer goods companies, fashion brands, and even farmers across the country.
In a direct-to-consumer model, manufacturers or retailers sell directly to the consumer without the involvement of middlemen such as third-party sellers, wholesalers, and retail outlets for distribution. Typically, this is done by setting up an online storefront, or even a social media page, from where customers can browse and place orders. The company then directly ships products to consumer locations with the help of an in-house transport facility or third-party transporters.