DTCs are notoriously effective in courting young shoppers, including millennials and emerging Gen-Z consumers. This is likely because younger shoppers, growing up in the digital age and native to its conventions, gravitate toward convenience and are less tied to the longstanding preferences that legacy brands carefully crafted through decades of advertising. Mobile, which is tied to identity and location and offers quick digital purchasing options, is the platform where these trends are most exaggerated.
Amazon already uses its most valuable weapon — its own internal data — to compete with its own suppliers. It analyzes customer behavior around noted CPG brands, key market sectors, and private-label offerings from brands that sell on its platform to make decisions about where to launch its own private labels.
What can CPGs do to make it a win-win?
As the millennial generation settles down and moves into its 30s, retailers are looking at a new group of consumers as the most coveted demographic. Generation Z—born between 1994 and 2002—is forming its own identity and seeking out different shopping experiences than its older counterparts.
A new report, released by the location intelligence platform Ubimo, finds that Generation Z shows a surprising preference for physical stores, although members of this group aren’t interested in shopping so much as experiencing new products in-store.
DTC brands are emerging across dozens of categories. Early and best-known examples of DTC brands include Casper, Brooklinen, Warby Parker, and Tesla. Most DTC brands not only bypass the typical retail sales and distribution model but also act in other nontraditional ways. This has earned them a label as disruptors.
Advertising intelligence and sales enablement platform MediaRadar took a close look at DTC brand trends to find what’s fueling DTC advertising and to gain an understanding of how DTC companies make ad buying decisions. MediaRadar surveyed our own DTC clients and analyzed our data for deeper insights.