The E-Commerce Tsunami, Part 2: Direct to Consumer Brands

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The COVID 19 Pandemic has accelerated what was already an "E-Commerce Wave" to become an "E-Commerce Tsunami". As consumers have been holed up in their homes, online commerce has exploded. According to Nielsen, pre-COVID, only 9% of global consumers were shopping online regularly. Through COVID, 27% started shopping online for the first time. By May 2020, 44% said they were shopping online regularly each week. And, a recent study of 14,000 consumers by Shopkick also supports this massive change in consumer behavior. That report states that 60% of the study's respondents say that the Pandemic has forever changed their shopping habits.This report on Direct to Consumer Brands is Part Two in a Three Part "E-Commerce Tsunami" Series:Part 1: Marketplaces Go MainstreamPart 2: The Strong Swell of DTC Brands Disrupting the Retail LandscapePart 3: The Technology Undertow Powering Massive Changes to the Retail IndustryOne of the hottest growth sectors within E-Commerce is Direct to Consumer (DTC) Brands where products are sold directly from the creator or manufacturer to customers without any intermediary channels like marketplaces, brick and mortar stores or third party retailers. Today, DTC Brands represent approximately 27% of E-Commerce sales in the US, or $215 Billion. eMarketer estimates that 40% of internet users in the US expect DTC brands to account for at least 40% of their purchases within the next five years. This report focuses on five sectors for DTC Brands: Apparel; Health and Beauty; Food and Beverage; Lifestyle and Fitness and Home Decor and Furnishings. The first two categories have the most companies and M&A and Private Financing activities. But, the other three offer some really interesting stories and opportunities.

The E-Commerce Tsunami, Part 2: Direct to Consumer Brands

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