While DTC may be taking a hit at the moment, it is still an important retail channel and retailers that want to succeed will need to incorporate it as part of an omnichannel strategy.
Per David Schneidman, senior director at Alvarez & Marsal Consumer Retail Group, a key reason behind the market slowing down is the high cost per acquisition.
“With the current economic volatility, brands need to be tighter with their cash and their burn…it cannot be a place where you live and die because you will have to get into diversifying your revenue channels, particularly with wholesale and retail,” Schneidman told Retail Brew. Omnichannel is also something the aforementioned brands have relied on as a long-term strategy. But it wasn’t always like this.