If you want to buy a pair of pants from popular clothier Everlane, there are only two ways to do so — direct from the company (through its popular website or one of its six physical locations) or at Nordstrom (NYSE:JWN). Direct-to-consumer, or DTC, has become a critical retail trend and a challenge for many traditional retailers. But Nordstrom is facing this challenge head on by embracing the channel and creating partnerships to benefit from it.Many companies, such as Warby Parker and Everlane, started out with DTC models, while other companies, such as Apple and Nike, are moving their businesses in that direction and profiting from the transition.
Why DTC?Many companies have started to favor the direct-to-consumer approach, which is beneficial for several reasons:
- Cutting out the middleman who’s cutting into your profits
- Better connections with your customers, learning from them in the process
- Quickly expanding your mindshare and getting your name out to the world
- Controlling your brand messaging and story