According to a recent KPMG survey results of 100 executives at consumer and retail brands, who leverage DTC channel strategies, DTC is poised for growth. In fact, of those that launched a DTC strategy more than five years ago, 73 percent view the DTC channel as a main driver of growth across their brand.1
A channel for growth
Executives in our survey cite the potential for incremental sales (51 percent), improved gross margins (40 percent) and greater consumer engagement (28 percent) as top reasons for launching a DTC business.2 To stay competitive, many businesses leveraging DTC strategies are evolving their approaches to increase access to their brands.
Where’s the value?
While DTC remains an important strategic channel, challenges need to be overcome for its performance to live up to its promise. This is especially true when it comes to the lack of understanding of the performance and profitability of a company’s DTC business. For instance, only 20 percent of the non-finance executives surveyed were very confident their business accurately measures true DTC profitability. This compares to 56 percent who cited average confidence and 22 percent that think their company doesn’t allocate profitability measures accurately.3
Incremental sales and improved gross margin were the most popular reasons for launching a DTC business for SVP/VP’s
Non-finance executives are less confident than finance executives that their company understands true profitability
Regardless of where you fit, DTC is important to your journey. Learn more and read the report below.