2023
9
UK Direct-to-Consumer Retail Market Report 2023
2023-10-26T11:01:36+01:00
REPEA45523C_D439_4AB6_B278_644EE05AC8B5
2195
167605
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Report
en_GB
The peak pandemic boom for direct-to-consumer retail brands is over and a more cautious and value-led consumer has created a tough market for brands. Therefore, looking past obvious target markets…

UK Direct-to-Consumer Retail Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Direct-to-Consumer Retailing Market Report 2023. Our full report is packed with consumer-led market intelligence, direct-to-consumer retail trends, and consumer behaviours affecting your industry. Get a 360° view of the direct-to-consumer retailing market including a forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • A detailed direct-to-consumer retailing market outlook, including expert insights, and market drivers.
  • The impact of the cost of living on direct-to-consumer retail brands.
  • Awareness, use, and profiles of leading direct-to-consumer retail brands.
  • Factors which would encourage consumers to buy directly from brands.
  • Attitudes towards trying new brands and service expectations consumers have.
  • Ethical and environmental credentials of direct-to-consumer retail brands.

An Overview of the UK Direct-to-Consumer Retailing Market

Due to inflationary prices, consumers remain cautious around trying new brands, are hesitant when it comes to subscriptions, and prioritise value. The result is a squeezed direct-to-consumer retailing market.

To break down barriers, brands need to reward loyal shoppers and utilise word of mouth. Maintaining a presence in the physical sector is also important to offset easing online demand.

Direct-to-Consumer Retail: What Consumers Want and Why

  • Inflation & Direct-to-Consumer Retail: Value and caution creates barriers for direct-to-consumer retail brands, with 59% of consumers saying that the cost of living crisis has made them more hesitant to try new brands. Combined with the, on average, generally higher price-point of direct-to-consumer retail brands, the current market environment represents a much tougher trading environment. Once consumer finances recover, people will be more open to experimentation, providing greater opportunity for direct-to-consumer retail brands.
  • How to Make Your Brand Stand Out: The uptick in direct-to-consumer interest and purchasing as part of the peak-pandemic growth in online shopping saw a rush to market from a high number of new start-ups. Eco and ethical claims formed a key aspect of a majority of launches, creating a homogenous view of many direct-to-consumer retail brands with shoppers unable to distinguish between them. Although underlying eco and ethical drivers will remain important for 63% of consumers, brands cannot be defined on this alone and may risk being unable to cut through the noise.

Direct-to-Consumer Retailing Market Forecast

  • Direct-to-consumer brands will have significant opportunity to tap into new audiences, i.e. over 55-year-olds, by combining health and wellness trends with greater online use.

To learn how to connect with your audience, purchase our UK Direct-to-Consumer Retailing Market Report 2023 in full. Reveal lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Products and Brands Discussed in this Report

Brands: Bioniq, ace & tate, Surreal, Amazon, Gymshark, Tails, Smile Direct Club, Skin + Me, Beauty Pie, Butternut Box, Green Chef, All Plants, Cowboy, Saint + Sofia, Sézane, Cubitts, Hims/Hers, Patch Plants, Lust Home, Get A Drip, Arena Flowers, Pleasing, Homethings, Blueland, Dr Martens, Nike, Adidas, Levi’s, LoveHoney, The Ordinary, On Running, Who Gives A Crap, Castore, All Birds, Kylie Cosmetics/Skin, Grind, Peloton, HelloFresh, Gousto, and many more.

Additional Features Included with Your Purchase

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  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights on Direct-to-Consumer Retail in the UK

This report, written by Nick Carroll, Category Director, delivers in-depth commentary and analysis to highlight direct-to-consumer retail trends in the UK and add expert context to the numbers.

The peak pandemic boom for direct-to-consumer retail brands is over and a more cautious and value-led consumer has created a tough market for brands. Therefore, looking past obvious target markets is critical.

Nick Carroll - Research Analyst
Nick Carroll
Category Director – Retail Insight

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the D2C market
    • Market dynamics and outlook
    • Graph 1: the financial wellbeing index, 2016-23
    • Graph 2: all online retail sales (including VAT), market size and growth, 2018-23
    • Graph 3: total online sales as a percentage of total retail sales (ex. fuel), 2021-23
    • Graph 4: estimated breakdown of total online sales, by type of operation, 2019-22
    • What consumers want and why
    • Graph 5: awareness of direct-to-consumer brands, 2023
    • Graph 6: direct and indirect purchasing of select brands in the past 12 months, 2023
    • Graph 7: information sources for D2C brands, 2023
    • Graph 8: factors which could encourage consumers to shop directly with brands, 2023
    • Graph 9: impact of the cost-of-living crisis on D2C brands, 2023
    • Graph 10: expectation and attitudes towards D2C brand image, 2023
  2. Market Dynamics

    • Online market size and D2C
    • Graph 11: all online retail sales (including VAT), market size and growth, 2018-23
    • Graph 12: total online sales as a percentage of total retail sales (ex. fuel), 2021-23
    • Graph 13: estimated share of total non-food sales, store versus online and other non-store, 2021-23
    • Graph 14: total number of VAT and/or PAYE based non-store retailers, 2019-23
    • Graph 15: estimated breakdown of total online sales, by type of operation, 2019-22
    • Macro-economic factors
    • Graph 16: CPI inflation rate, 2021-23
    • Graph 17: all retail sales (excluding fuel), non-seasonally adjusted year-on-year performance by value and volume, 2022-23
    • Graph 18: "To what extent are you worried about how the following issues might affect your household finances over the next two months?", 2023
    • Graph 19: "How do you think the following will change over the next year?", 2023
    • Graph 20: the financial wellbeing index, 2016-23
    • Graph 21: the financial confidence index, 2016-23
  3. What Consumers Want and Why

    • Emerging D2C brand awareness
    • Graph 22: awareness of direct-to-consumer brands, 2023
    • Graph 23: demographic profile of D2C brand awareness, by age and household income, 2022
    • Direct and indirect purchasing of established brands
    • Graph 24: direct and indirect purchasing of select brands in the past 12 months, 2023
    • Graph 25: purchasers of select brands in the last 12 months, by method, 2023
    • Graph 26: direct/in-direct purchasing of select brands, by financial situation, 2023
    • Information sources for D2C brands
    • Graph 27: information sources for D2C brands, by age, 2023
    • Graph 28: D2C brand awareness gained from streaming/podcasts, by age, 2023
    • Factors to encourage D2C purchasing
    • Graph 29: factors which could encourage consumers to shop directly with brands, by age, 2023
    • Attitudes towards D2C brands
    • Graph 30: attitudes towards D2C purchasing, 2023
  4. Leading D2C players

    • Food & drink: leading D2C players
    • BPC & household: leading D2C players
    • Fashion & home: leading D2C players
    • Miscellaneous specialists: leading D2C players
    • Advertising and marketing activity
    • Graph 31: total above-the line, online display and direct mail advertising expenditure by select D2C brands, 2018-2022
    • Graph 32: total above-the line, online display and direct mail advertising expenditure by select D2C brands, by advertising media type, 2022
    • Key campaigns
  5. Appendix

    • Report scope and definitions
    • Methodology

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2024 Sample Consumer Cover

Please Note: All of the figures, graphs, and tables in this sample report have been redacted.

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