Through research conducted among 2,000 UK consumers, and a further 2,000 in France and Germany, Rakuten Marketing has revealed consumers’ awareness of the top ‘direct to consumer’ (DTC) brands. The study shows that four of the top five names are local UK businesses, placing them higher than global brands, such as Casper, Harry’s, and Glossier. The study also details how many consumers have heard of brands such as SimplyCook, and Made.com, and what percentage of them have made a purchase.
Keep reading ahead to find out how social media and affiliate marketing has affected these brands’ business models, the methods they use to drive conversions, and where to find the press release detailing the top 10 list of DTC brands.
DTC as an efficient business model
The research shows high percentages of people who have heard of the top 10 brands also purchase their products, confirming the efficacy of the DTC business model. A key example of just how effective the DTC model is demonstrated with top 10 company, Birchbox. Whilst 35% of UK respondents from the study had heard of Birchbox, 28% of this percentage had bought from the company.
Working with appropriate affiliate publishers enables brands to drive awareness and conversions. Anthony Capano, Managing Director, EMEA at Rakuten Marketing explains that “DTC brands have historically relied on performance-based digital advertising strategies. Now, many leverage high return publishers to target audiences with direct response ads to drive conversions”.
Social media is effective, but it comes at a price
When analysing the channels that play a role in raising awareness for the DTC brands, it’s evident that social media is heavily involved. 44% of UK consumers place Facebook as a platform that exposes them to DTC brands. However, as the power of social media expands and the use of influencers rises (as discussed in our Influencer Marketing: Global Survey) the costs attached to them can increase.
The effectiveness of the business model has inspired independent brands such as fashion label Meli Melo to move towards a DTC approach. Doug Ker, CEO of Meli Melo, comments that “the targeting available through social platforms is like nothing many retailers had encountered before. However, as these tools mature, they are also becoming more expensive”. Referencing independent companies such as Lush, Doug states that these brands are now considering whether there are more efficient solutions to reaching core segments of their audience.
So, who are the top 10 DTC brands?
For help in finding the right publishers so you can reach your target audience, get in touch with Rakuten Marketing here. You can find Rakuten Marketing’s press release on the top 10 DTC brands by clicking here.