DTC (Direct-to-Consumer) brands have been remarkably resilient during the COVID-19 lockdowns. These digitally native brands have, in many cases, seen sales shoot up. Meanwhile, incumbent leaders have had to repair and remake broken distribution and marketing channels.
In Denise Power’s recent Forbes article about DTC resilience and the funding of the Innovation Department, I offered a couple of insights:
1. DTC brands have kept their marketing efforts running, un-interrupted during COVID. In many cases they have increased marketing spend in order to take advantage of lowered costs on channels like Facebook. Being fully capable online - with marketing, e-commerce, distribution and customer support - means that DTCs could continue at full speed. They will gain important ground, as they are proving they can be relied on, in all circumstances.
2. DTC brands are also much more nimble and aggressive in responding to big changes. Many of the DTCs we work with are already launching new products in response to the ‘new normal’ - learning quickly from their audiences and adjusting effectively.