Rise of Direct-to-Consumer in Europe

Nearly six out of ten European organisations (59%) across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale say their investment in the Direct-to-Consumer (DTC) delivery model has increased since early 2020, with a total of 18% saying it has increased significantly. By increasing their investment, organisations believe they can improve profit margins, reduce cost, and service customers more effectively.

That’s according to a European Direct-to-Consumer research report by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, polling decision-makers across the UK, Benelux and the Nordics, which points to a dynamic, fast-growing DTC sector.

However, organisations are also facing a range of barriers related to people and technology when it comes to achieving the DTC success they are seeking. These include, in the former category, lack of skilled staff, highlighted by 17% of the survey sample and culture of the company (16%), and in the latter, physical infrastructure (19%) and difficulties identifying the right infrastructure for DTC (16%).

Sustainability and Customer Experience are the key growth drivers of DTC in Europe

The latest technology is key in helping businesses protect themselves from failing to fulfil customer expectations when operating DTC. The survey reveals that many organisations are considering complete categories of products and even their whole range through DTC. Organisations must ensure that they are investing in people and technology and making sure that that their systems and processes are working at optimum efficiency levels. Putting money behind order management and fulfilment will be a key part of that.

42% of the survey sample highlighted investing more in order management and fulfilment technology as a key way of protecting themselves from failing to fulfil customer expectations when operating DTC while 29% referenced creating real-time visibility across all inventory locations.

Deposco’s complimentary report, The Rise of Direct-to-Consumer in Europe: How businesses can break through the barriers and make a success of DTC channels, is now available.