"With online-only brands becoming more widely-accepted shopping options, exclusivity is no longer enough to win over consumers. Brands must showcase their overall value beyond just price and the products they sell."
Katie Hansen, Senior Analyst - Retail & eCommerce
Direct-to-consumer brands, also referenced as online-only brands, are no longer a niche option for consumers as they’ve become a mainstream part of the retail landscape. In fact, 63% of consumers have purchased from a DTC brand, and 77% are open to exploring online-only options. This marks a significant shift, cementing online-only brands as a critical pillar of the retail and ecommerce ecosystem, offering consumers different ways to discover and purchase products that meet their needs.
Consumers are open to shopping across product categories as they become more comfortable with online-only purchases. For many, the need to physically see a product before buying is becoming less critical, provided they have access to comprehensive reviews, detailed product descriptions, and robust company information. While an in-person experience can add a nice touch, it’s often no longer essential.
However, with current economic pressures, DTC brands face increasing challenges and competition. Consumers are prioritizing holistic value over individual factors such as exclusivity, uniqueness, or even price. To stand out, online-only brands must clearly communicate the full value of their offerings, such as a high-quality (and perhaps even personalized) products, superior customer service and easy-to-earn rewards for future purchases. Looking ahead, social commerce and technologies like AI will play a larger role in shaping the online shopping experience. These tools will empower consumers to make more informed decisions while shopping. Younger generations, in particular, will seamlessly incorporate these innovations into their shopping behaviors, reshaping how online-only brands engage and communicate with their audience in the coming years.
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