A majority of DTC brands moved to digital channels during the crisis: Study

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 30, 2020, 11:17 AM UTC

Social media agency Totem’s latest study highlights how DTC brands in the US and Europe are responding to the pandemic.

The study found 22% of direct-to-customer brands reported a sales decline, as opposed to 80% of larger, traditional retailers that suffered sales dips since the coronavirus outbreak. Instead of furloughing employees, DTC brands retained and redeployed store-based employees to new digital roles.

While maintaining a sufficient inventory has been a challenge, constant focus on customer support has helped DTC businesses strengthen their position. DTC companies which closed physical locations instead offered consultations with experts by phone, text and online for shoppers.

Totem Media CEO, Chris Baker said: “DTCs also demonstrated the willingness to ‘double down’ on key digital channels during times of stress.” 85% of respondents said they would invest more in Facebook during the second half of this year.

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