Direct-to-Consumer (DTC) companies can offer lower prices by doing away with intermediaries; strategist Kunal Sinha lists both the advantages and challenges that they face.

Why it matters

As online shoppers seek to cut out the middleman and buy directly, direct digital engagement will allow brands to understand consumers’ needs and serve them better but there are challenges in the form of stiff competition and rising customer acquisition costs.

Takeaways

• The pandemic has lowered market entry barriers; businesses no longer have to create an entire ecosystem to fulfil demand.
• DTC has the ability to understand customer preferences in real time and...