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Driving Global Supply-Chain Savings & Improvements

DTC brands are losing their competitive edge over traditional retail, as difficulties with supply-chain management make it harder to compete with major players. According to Diffusion’s annual Direct-to-Consumer Purchase Intent Index, just 12% of consumers preferred to shop with DTC brands because they offer fast and free shipping, down from 57% in 2022. Brick-and-mortar retailers continue to invest in expanding their e-commerce and delivery capabilities—chipping away at what was once a crucial differentiator for DTC brands—at the same time that supply-chain challenges hamper the entire industry. Big-name DTC brands emerged prior to the Covid-19 pandemic, when supply chains were under less pressure globally. Now, they have to adapt to survive and thrive in the post-pandemic economy. These circumstances have required some DTC brands to walk back one of the core tenets of the DTC model: making direct sales to customers. Rather than controlling the entire sales process from online purchase to shipping, brands such as Allbirds, Solo Brands, and Peloton are relying more on wholesalers. The motivation for this pivot is that wholesalers allow companies to buy in greater volume, creating cost efficiencies on the supply side—if not big profits. Read more from the great Alex Vuocolo here: https://lnkd.in/estTS3Yr

How DTC brands can improve supply-chain management

How DTC brands can improve supply-chain management

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