65% of Americans intend to buy DTC brand products, down from last year

According to the 2022 Direct-to-Consumer Purchase Intent Index released by Diffusion, only slightly more than half (nearly 60%) of Americans have purchased from a DTC brand at least once in the past year .

In a survey of 1,185 U.S. adults, 65% of respondents intended to purchase a product from a DTC brand at least once in 2022, down from 79% the year before.

The report’s findings suggest that DTC brands are having a hard time winning over U.S. consumers, especially when competing against traditional retailers.

43% of people do not plan to buy DTC brand products during the busiest shopping season in 2021. When asked why, 23% said they can get better prices from traditional retailers, and 21% pointed out that they can find similar products at a more appropriate cost at traditional retailers.

Of course, DTC brands are not without advantages. For those who prefer to buy DTC brand products, 23% said they provide higher quality products, and 18% said DTC brands provide better customer service and experience.

In addition to price and quality, delivery service is also one of the factors that pull down the favorability of DTC brands. 40% of respondents said that fast and free delivery is a reason they choose traditional retailers instead of DTC brands. If DTC brands want to win the favor of consumers from traditional retailers, free and fast delivery is key.

In addition, physical convenience and accessibility play a big role, with 32% of consumers citing this as one of the reasons they prefer traditional retailers over DTC brands. Some native digital brands have also realized this. In recent years, DTC brands have increasingly partnered with retailers with large stores such as Target and Walmart. Partnering with retail giants has alleviated the high cost of marketing goods online to a certain extent.

It’s also important to note that some consumers don’t seem to be easily impressed by modern marketing strategies from DTC brands, with 62% of respondents saying influencer marketing doesn’t work for them. In fact, 25% of U.S. adults said that seeing an influencer post about a DTC brand product would make them less likely to buy the product. Only 13% said that seeing an influencer post about a DTC brand would prompt them to buy.

However, the editor believes that each channel has its advantages and disadvantages, and sellers may wish to integrate multiple platforms to complement each other's strengths and weaknesses.

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DTC Brands