Xin Ou
Research expert covering Greater China
D2C e-commerce - statistics and facts
Over the last few years, the emerging direct-to-consumer (D2C) business model has disrupted and transformed the e-commerce industry. A growing number of companies design, manufacture, market, sell, and ship their products themselves, without intermediaries. These D2C companies can either be digitally native brands or established businesses. While the former category has been launched online, the latter consists of mostly traditional manufacturers and distributors. Thanks to D2C e-commerce, both types of companies can bypass conventional retailers and bring their products straight to customers via their online stores.
North America is home to the world's highest share of digitally-only D2C brands. In the United States, it was estimated that established brands generated around 135 billion U.S. dollars in e-commerce sales in 2023, compared to roughly 35 billion from digitally native brands. By 2025, these figures are forecast to reach 187 billion and 40 billion, respectively.
North America is home to the world's highest share of digitally-only D2C brands. In the United States, it was estimated that established brands generated around 135 billion U.S. dollars in e-commerce sales in 2023, compared to roughly 35 billion from digitally native brands. By 2025, these figures are forecast to reach 187 billion and 40 billion, respectively.
Cheap prices attract shoppers
Direct-to-consumer sites were the third most popular online purchase channels in 2023, after marketplaces and supermarkets. Several factors motivate global online shoppers to buy directly from brands, with better pricing being the key factor, followed closely by free and fast delivery. The items consumers buy from brands directly mirror the general e-commerce patterns, with clothing and accessories dominating the D2C product categories, followed by electronics. According to a recent global survey, more than four out of ten respondents had purchased fashion directly from D2C sites. These channels drew the least interest from shoppers when it came to purchasing food and beverages online.Spotlight: Lululemon Athletica
Given that apparel is the most purchased D2C product category, it is not surprising that fashion retailers top the global list of the leading public direct-to-consumer companies with e-commerce operations. In 2023, Lululemon Athletica Inc. ranked as the market leader with revenues of approximately eight billion U.S. dollars. Founded in 1998, the brand started out as a yoga studio in Vancouver, Canada, and has since grown to become a global brand. The brand specializes in athleisure attire, a growing segment of the fashion industry that capitalizes on a more casual style of clothing. The COVID-19 health crisis accelerated the company's D2C revenue share, taking it from 29 percent in 2019 to over half in 2020. Since then, direct sales have been a strong revenue source. From 2019 to 2023, it was estimated that the company’s e-commerce sales experienced a threefold increase. By 2024, Lululemon’s online sales are forecast to reach 3.7 billion U.S. dollars.
