Top 10 direct-to-consumer trends: A comprehensive guide for savvy founders in 2024

The direct-to-consumer marketing model first emerged in the mid-2010s, with the popularity of easy-to-ship items like skincare, makeup, and fashion. In the post-pandemic climate, however, the DTC model truly soared, driven by advancements in tech and significant changes in consumer shopping habits. Today, higher-priced and more complex items like smart home technology, food, beverages, and health tech are also succeeding in the DTC paradigm. With evolving consumer behaviours, the DTC landscape has already seen substantial growth this year and the industry is expected to see more excitement in the second half of 2024.

Like most things, the DTC landscape is being shaped by evolving consumer preferences and innovative marketing strategies. It’s no longer just about selling directly to consumers; it’s about creating unique and personalised experiences that resonate with target audiences. As we step into Q3 of 2024, let’s look at the latest DTC trends and practices that seem to be shaping up the DTC market. Tech stacks, personalised marketing, and consumer behaviour trends are proving to be key elements in this evolving landscape.

1. Collaboration is key

Generating awareness remains a significant challenge for new businesses. DTC brands are increasingly leveraging collaborations to boost their reach. For example, Solo Stove, a fire pit and grill manufacturer, collaborated with Outer, an outdoor furniture company, to enhance their exposure. UGC/influencer collaborations, as well as brand collaborations, allow DTC brands to tap into each other’s customer bases and create unique offerings that appeal to a broader audience.

2. Personalisation for customer experience

Personalisation and personalised marketing practices are a pivotal trend this year in the DTC sector. Brands are focusing on creating tailored shopping experiences for consumers based on previous shopping, search, and browsing history. For example, smart landing pages now adjust content based on the user’s physical location. According to the Salesforce Consumer report, 80% of customers believe the experience a brand provides is just as important as the quality of its products and services.

3. Tech stacks and AI-optimised consumer experiences

Technological tools that help reduce manual workloads, automate repetitive tasks, and leverage zero and first-party data are becoming increasingly popular among DTC stores. Generative AI is also enhancing customer experiences, with 81% of customers expecting faster service as technology advances, and 73% expecting better personalisation. The integration of these technologies into e-commerce tech stacks allows for more seamless and efficient operations and consequently better consumer experiences.

4. Diversified branding

DTC brands didn’t always believe in brand marketing, the same has now changed! Whilst ‘ugly ads that don’t look like ads’ is still a valid war cry in DTC advertising, 2024 will see DTC brands moving away from generic aesthetics and creating unique brand identities.
The shift from bland, pastel-themed branding to more varied and adventurous designs helps with brand recognition/awareness and allows brands to connect with their specific target audiences more effectively. Embracing brand marketing allows brands to differentiate themselves in a crowded market and create a strong brand identity.

5. Going global

Facilitated by e-commerce platforms that have made international selling easier than ever; DTC brands are now expanding beyond domestic markets. This global expansion has opened up new growth avenues whilst also allowing brands to tap into emerging markets. By embracing global expansion, DTC brands are now keen on reaching new customers to increase their market share.

6. Traditional retailers testing DTC

Traditional retailers are embracing DTC models or acquiring DTC brands to align themselves with the changing consumer preferences. This shift allows them to appeal to different customer segments and expand their market share. By leveraging DTC models, traditional retailers are keen on building direct relationships with their customers and offer unique products and services.

7. Product diversification

DTC brands are diversifying their product lines to mitigate risk and stay competitive. This involves expanding personalisation options or venturing into complementary product categories. For example, Burrow, which started with modular couches, now offers a variety of home items. Product diversification allows brands to appeal to a broader audience and reduce their reliance on a single product or category. Another trend that is about to be massive this year.

8. Subscription-based models

Subscription-based models are an already established, customer retention strategy for DTC brands but 2024 will see a significant push for this model. Many e-commerce companies are planning to offer product subscriptions in the near future as they provide a steady stream of recurring revenue and help build customer loyalty.

9. Augmented Reality for enhanced consumer experiences

Augmented Reality (AR) is becoming increasingly popular among marketers and the same is true for DTC brands. The use of AR to enhance consumer experiences and to help consumers visualise products before purchasing can significantly impact their buying decisions. By leveraging AR, DTC brands are creating immersive shopping experiences which is helping them stand out in a crowded marketplace.

10. The rise of social commerce

Social commerce is set to continue its upward trend as more consumers turn to social media platforms for their shopping needs. Nearly 98% of online shoppers plan to make at least one purchase on social media, according to Sprout Social. Platforms like Facebook, Instagram, TikTok, LinkedIn, and Pinterest now facilitate online shopping, and paid advertising campaigns on these platforms are becoming increasingly popular. It’s crucial for ecommerce businesses to invest in social media channels where their customers are active. As new platforms and technologies emerge, social commerce will continue to thrive in 2024 and beyond.

In conclusion—as the DTC space matures and the competition heats up; the direct-to-consumer (DTC) landscape in e-commerce promises to only get more exciting.

The e-commerce trends shaping the DTC ecosystem encompass—collaborative efforts to expand brand reach, personalised marketing strategies enhancing consumer experiences, and the integration of advanced technology stacks and AI for streamlined operations. Diversified branding strategies are also emerging, facilitating unique brand identities amidst a competitive DTC market. Moreover, global expansion initiatives and the adoption of subscription-based models are also set to reshape the e-commerce business models. Augmented Reality (AR) is revolutionising consumer engagement, while social commerce continues to soar.

Delving deeper into these trends; we’ve decided to put together the practical applications of each trend and detail the requisite strategies you can employ for effective execution in this ever-evolving DTC world.

1. Collaborative partnerships: You can make the most of this trend by actively seeking partnerships with complementary brands to expand your reach and tap into new customer bases. Resort to influencer/content creator collaborations and co-branded initiatives to create unique offerings.
2. Personalised marketing: Brands can leverage consumer data to create tailored shopping experiences. Implement dynamic content on your website and socials based on user behaviour and preferences. Invest in AI-powered tools to automate personalised recommendations and messaging.
3. Tech Integration: Adopt advanced technology stacks and AI solutions to streamline operations and enhance customer experiences. Explore tools like Tableau and Google Analytics for data analytics, inventory management, and customer relationship management to optimise efficiency.
4. Branding Differentiation: Resort to brand marketing to develop a distinctive brand identity that resonates with your target audience. Embrace creative branding strategies that set you apart from competitors, fostering brand recognition and loyalty.
5. Global Expansion: Expand into international markets using e-commerce platforms that facilitate seamless cross-border selling. Conduct market research to identify new opportunities and adapt your strategy to local preferences and regulations.
6. Subscription Models: Implement subscription-based offerings to foster customer loyalty and generate recurring revenue; if you haven’t already. Provide incentives such as discounts or exclusive access to incentivise sign-ups and retention.
7. Augmented Reality Integration: Use AR technology to create immersive shopping experiences that allow consumers to visualise products before purchase. DTC brands like HiSmile and Glossier have done a great job of using AR. You too can invest in AR tools and applications to enhance engagement and drive conversions.
8. Social Commerce Strategies: Capitalise on social commerce by optimising your presence on platforms like Facebook, Instagram, and TikTok. Utilise paid advertising campaigns and shoppable posts to drive traffic and sales.

By actively implementing these actionable insights, DTC brands can stay ahead of the curve and drive growth by capitalising on the trends we’ve listed in this article.