Many direct-to-consumer and digitally-native brands are seeing the underlying value of opening brick-and-mortar shops. These physical locations are necessary for long-term growth and survival in a retail environment where an omnichannel approach is needed. In 2022 many other DTC brands will follow in pursuit and move offline. Brick-and-mortar stores serve as a place for consumers to test products in real life and make human face-to-face connections with a brand. Not only that, they also create a prime marketing channel to alleviate the high advertisements costs that come with e-commerce. High operating costs and the frictions of e-commerce often come at the expense of of profitability for many DTC brands. Brand such as Warby Parker, Allbirds, Billie, Casper, Amazon and more have made waves to create physical channels and grow their name in retail. Once these brands ventured into brick and mortar, they quickly realized the growth it promoted, making plans to open more physical expansions within the same year. Partnerships with DTC brands also help traditional, big-box retailers to attract younger customer demographics by introducing new and popular items in their stores. As e-commerce becomes overly saturated, their frictions will continue to rise and individuals will lean on all that brick and mortar has to offer. Source: DTC Brands – Retail Dive Photo Credit: DTC Brands – Retail Dive
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Retail trends show DTC brands are seeing the need to move offline in 2022, eyeing physical retail
Many direct-to-consumer and digitally-native brands are seeing the underlying value of opening brick-and-mortar shops. These physical locations are necessary for long-term growth and survival in a retail environment where an omnichannel approach is needed. In 2022 many other DTC brands will follow in pursuit and move offline. Brick-and-mortar stores serve as a place for consumers to test products in real life and make human face-to-face connections with a brand. Not only that, they also create a prime marketing channel to alleviate the high advertisements costs that come with e-commerce. High operating costs and the frictions of e-commerce often come at the expense of of profitability for many DTC brands. Brand such as Warby Parker, Allbirds, Billie, Casper, Amazon and more have made waves to create physical channels and grow their name in retail. Once these brands ventured into brick and mortar, they quickly realized the growth it promoted, making plans to open more physical expansions within the same year. Partnerships with DTC brands also help traditional, big-box retailers to attract younger customer demographics by introducing new and popular items in their stores. As e-commerce becomes overly saturated, their frictions will continue to rise and individuals will lean on all that brick and mortar has to offer. Source: DTC Brands – Retail Dive Photo Credit: DTC Brands – Retail DiveSREG's operational & investment Insight, Expertise & Experience
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