The Backroom: What’s in store for DTC in 2024?
Over the past year, the DTC industry faced multiple challenges including slowing funding, layoffs, and consumer spending cuts, with several companies going bankrupt or holding IPOs. In 2024, brands will place greater emphasis on profitability, with DTC shifting from a core model to one of several channels. Industry trends include wholesale balance and continued turbulence in the sports category.
Welcome to The Backroom, a window into what goes on behind the scenes as the Retail Dive team covers the stories and trends reshaping retail. You can check out all our podcast episodes (past and present) here and listen on Apple Podcasts, iHeartRadio and Spotify.
Over the past year, the direct-to-consumer industry experienced a variety of obstacles.
A lag in funding impacted many smaller private brands, layoffs were enacted to cut costs and consumers tightened their budgets for discretionary purchases. With investors prioritizing profitability, "DTC" has evolved from being a model companies centered their businesses on, to becoming merely a channel brands use alongside other avenues.
In 2023, several companies — like Showfields and SmileDirectClub — filed for bankruptcy, long standing brand founders stepped down from the chief executive position and some companies filed for initial public offerings.
The team broke down what we can expect to see during the year ahead, ranging from brands finding a balance with wholesale to continued disruption in the athletics category.
Resource links:
- 8 DTC trends to follow in 2024
- 8 DTC brands to keep an eye on in 2024
- A look at DTC acquisitions in 2023 so far
Editor’s note: This episode was produced and edited by Caroline Jansen.