The value of the Direct to Consumer (DTC) market will boom to £13 billion by 2025
British manufacturers are increasingly cut out retailers and wholesalers and sell their products direct to consumers, according to a recent study by Barclays. The benefit will reach a massive £13 billion as they carry out one of the biggest shake-ups the industry has seen in generations.
The companies involve technology to sell and distribute their products through social media and the Internet. It takes the whole traditional model of selling goods via wholesalers and retailers under pressure more than ever.
Nowadays, approximately 3 out of 4 companies sell directly to consumers (73%), soaring sales rate by 55% over the last 5 years. For those manufacturers who have invested in a DTC sales strategy, the average revenue has increased by 45%, the customer base has grown by 38%, and the speed to market has risen by 32%.
Nike became the latest big brand to launch its own direct sales channel last year, ‘Nike Direct’. At the same time, startups such as Eve Mattresses and Harry’s razors began as DTC brands and have now expanded into selling into shops.
Besides the manufacturing sector, DTC activity could also provide a much-needed boost to the wider UK economy by up to £32.5 billion in the next 5 years.