Bridging The Gap
The Rise of Direct to Consumer Businesses
Direct to Consumer (D2C) businesses have been launching across consumer categories in recent years – from apparel to beauty – fuelled by VC funding and a business model promising higher margins and a direct relationship with the consumer.
The emergence of these businesses has raised a number of questions across the market:
• How can the potential for these businesses be assessed?
• What are the right metrics to assess performance?
• Given the large amounts of capital deployed, what can an investor expect from a D2C business?
• What are the implications for competitors with more traditional business models?