D2C marketing and advertising trends and stats around the world

D2C or “direct-to-consumer” brands are companies that sell their products directly to consumers, rather than through a third-party retailer or distributor. D2C brands typically use e-commerce and digital marketing strategies to build their customer base and create a strong online presence. By cutting out the middleman, D2C brands can often offer lower prices, free delivery and returns, and more personalized experiences to their customers.

Rising consumer trust in ecommerce, widespread smartphone usage, and innovations in logistics and payment technologies have made it easier than ever for customers to buy directly from brands via their websites or apps. At the same time, brands are increasingly opting to sell directly in order to improve margins, gain customer insights, and build brand loyalty. 

By selling directly to consumers online, D2C brands can reach a global audience without the need for a physical storefront or retail partner. This has enabled many D2C brands to expand rapidly and scale their businesses quickly. Additionally, the COVID-19 pandemic has accelerated the shift to online shopping, further driving the growth of the D2C model. According to forecasts from Insider Intelligence, 64% of consumers worldwide—as many as 1.7 billion digital buyers—regularly bought directly from a brand in 2022, up 15 percentage points from 2019.

Jump to a specific region:

• US     
• Europe   
• India     
• Southeast Asia
• Australia & New Zealand   

US

D2C marketing in the US

The US D2C market is growing rapidly as customers get comfortable going to the source of sales. US D2C ecommerce sales have more than tripled over the past six years, with the market growing from $36.08 billion in 2016 to $128.33 billion in 2021, according to Insider Intelligence data.

With this gain of almost $100 billion in about half a decade, the research firm expects the D2C market to expand by another $100 billion, to reach $212.90 billion by the end of 2024. With D2C sales in the US expected to account for 1 in 7 ecommerce dollars in 2022, there is strong evidence that consumers are well accustomed to buying directly from brand websites.

US Quora users are more likely to discover brands through posts or reviews from expert bloggers and vlogs. According to Global Web Index, 44.7% of US Quora users discover brands through online retail websites and are 37.9% more likely to do so than the average internet user. They are 81.4% and 90.7% more likely to discover brands through posts or reviews from expert bloggers and vlogs, respectively, and 41.5% more likely to do so through search engines.

Users of the platform tend to be discerning shoppers and like to engage with others about their purchase decisions. About two-thirds of Quora users in the US research products online before buying them and 44.4% trust what online reviews say about products and services. Around 44.6% tell their friends and families about new products and 46.6% look for expert opinions before buying expensive products. They are also 74.1% more likely to buy products and services to access the community built around them.

Popular D2C topics on Quora in the US

Quora users in the US have been showing interest in a variety of topics in the D2C space.

Over the past year, views on Hair Care and Healthy Beverages spiked, while other D2C Topics including Personal Grooming and Skin Care Products received steady interest from US Quora users.

Popular D2C questions on Quora in the US

EUROPE

D2C marketing in Europe

Europe’s D2C market has just kicked off, but will evolve at a rapid pace, according to a report by market intelligence company 6Wresearch. This growth will be due to  growing popularity of D2C sales platforms, the rise of institutional investment, and advantages of a seamless shopping experience.

The report added that the market is estimated to evolve over the next five years owing to its ability to reach new consumers and improve their shopping experience.

Quora Users in Europe are discerning shoppers who trust peer and expert opinions. Conversations on Quora are constantly providing deep insights into what consumers want and how they think. According to Global Web Index, 42.3% of Quora users in Europe discover brands through search engines while 36% learn about them through online retail websites.

They are 67.2% more likely to discover brands through personalized purchase recommendations on websites and 107.4% more likely to do so through posts or reviews from expert bloggers, than other internet users in Europe. The platform’s users tend to be discerning shoppers too, with 59.9% of people on Quora in Europe researching products online before buying them and 41.6% trusting what online reviews say about products and services.

They are 44.9% more likely to look for expert opinions before buying expensive products than overall internet users in the region and 38.9% of them tell their friends and families about new products. Quora users in Europe are 71.6% more likely to buy brands that they have seen advertised, 91.5% more likely to buy the premium version of products and 146.6% more likely to buy products and services to access the community built around them, than all internet users in Europe.

Popular D2C topics on Quora in Europe

Quora users in Europe have been showing interest in a variety of topics in the D2C space.

They are 124.6% more likely to discuss Skincare, Hair Care, and Beauty products online and more likely to have purchased make-up, cosmetics, skin-care products, fragrances, etc. in the last one month too.

In recent times, there has been a marked increase in the interest they have shown towards Skin Care, Hair Care and Hygiene Topics on Quora.

INDIA

D2C marketing in India

According to CII D2C Report, the Indian D2C market, valued at ~US $12 billion in 2022, will surpass US $60 billion by 2027, marking a CAGR of 40%. Interestingly, Indian consumers have more online interactions with brands than the global average and over 50% prefer virtual experiences to real-world.

Aiming to provide deeper insights and estimate the potential of the D2C market, the report segmented the space into:

• Beauty & Skin Care (Hair, Skin and Makeup – Eyes, face, Lips, and Nails)
• Hygiene & Personal Care (Personal Grooming, Hair removal, Dental Hygiene and Sanitary)
• Packaged Food (Healthy Snacks & Beverages, Pet Food)

Popular D2C topics on Quora in India

Beauty and skin care 

A recent report by Quora and KPMG in India found that consumers prioritize eliminating root causes of skin issues over quick fixes. For instance, acne-related content constitutes 38% of the views in Quora’s skincare segment. Moreover, users actively look for products for sustainable hair growth as well as occasional styling.

According to Global Web Index (GWI), Quora users are 81% more likely to purchase hairstyling products online, 80% more likely to purchase grooming and shaving products online, and 77% more likely to purchase skincare products through ecommerce than the average internet user in India. More than essentials like shampoo and conditioner, users are more likely to purchase beauty products like cosmetics, hair coloring products and fragrances online.

Popular beauty and skincare questions on Quora in India

Personal care products 

GWI data suggests Quora users are more likely to purchase personal care products online, with hairstyling, shaving and grooming products are at the top of the list.

The Feminine Products segment on Quora shows an increasing level of interest for non-conventional female hygiene products. Menstrual Cups and Tampons together contribute 53% of the total content views in the category, more than the 46% share of the more conventional sanitary napkins.

Healthy snacks and beverages

COVID-19 has brought a paradigm shift in the eating habits of consumers. As they were bound with work from home mandates, experimenting with various foods became easier. The study pointed out that there is an increasing preference for healthier eating options as people are becoming more health-conscious.

According to GWI, 57% of Quora users are interested in healthy food and drinks. Green tea has been in high demand lately as more and more Quora users are recommending and following it. Cereals and Oatmeal are considered to be close substitutes for having full-fledged meals. Cereals is a popular topic on Quora under the segment and Oatmeal, being an English-style breakfast, has also gained traction amongst Quora users lately as the market is in a developing stage.

Popular healthy snacks & beverages questions on Quora in India

Unraveling the D2C wave in India’s consumer commerce by Quora and KPMG in India concludes that a large and growing base of Indian consumers prefer greater customization and, as a result, building general marketing strategies could be futile.

Quora is a powerful tool for businesses looking to understand the dynamics of the D2C market and engage with potential customers. Its user base is made up of discerning consumers who actively seek out expert knowledge and recommendations, making it an ideal platform for businesses to share their expertise and promote customized products and services that meet the needs and aspirations of their target audience. By leveraging the power of Quora, businesses can build strong, long-lasting relationships with their customers and stay ahead of the curve in the rapidly evolving D2C space.

SEA

D2C marketing in Southeast Asia 

A large young population with high internet connectivity, online penetration across categories, and growing incomes is driving D2C in Southeast Asia. In 2020, as many as 40 million people across Southeast Asia came online for the first time—pushing the region’s total internet users to 400 million.

This report from Google, Temasek Holdings and Bain & Company, predicted that Southeast Asia’s internet sectors could witness strong growth and hit $100 billion in gross merchandize value (GMV) in 2020. Interestingly, by October 2022, there were over 460 million internet users in the region and the digital economy was already poised to hit US$200 billion in GMV–three years earlier than predicted.

There is still immense room for growth in D2C e-commerce in Southeast Asia and trends on Quora have been providing interesting insights into what consumers want and how they think. According to Global Web Index, 51% of Quora users in Southeast Asia discover brands through search engines while 45.1% learn about them through recommendations or comments on social media. They are 35.8% more likely to discover brands through brand or product websites and 54.1% more likely to do so through posts or reviews from expert bloggers, than other internet users in Southeast Asia.

Quora users in Southeast Asia tend to be discerning shoppers too, with 80.1% researching products online before buying them and 60.8% trusting what online reviews say about products and services. They are 46.5% more likely to look for expert opinions before buying expensive products and 27% more likely to tell their friends and families about new products. They are also 42.7% more likely to buy products and services to access the community built around them.

Popular D2C topics on Quora in Southeast Asia

Quora users in Southeast Asia have been showing interest in a variety of topics in the D2C space.

19.7% of Quora users in Southeast Asia discuss skincare, hair care and beauty products and are 69.9% more likely to talk about these products and themes than the average internet user in Southeast Asia.

AUNZ

D2C Marketing in Australia & New Zealand

A thought-provoking report by EY- Australia, Why D2C is a mindset, not a channel, points out that the rapid emergence of D2C strategies is a transformative opportunity for consumer goods companies, with limitless possibilities.

The study observed that having better consumer insights and being able to experiment quickly, can enable businesses to find new propositions and ways of doing business, as well as rapidly scale those that work.

Quora users in Australia and New Zealand are more likely to discover brands through personalized purchase recommendations. According to Global Web Index, 45.8% of Quora users in Australia and New Zealand  discover brands through search engines while 32.1% learn about them through online retail websites. They are 92.7% more likely to discover brands through personalized purchase recommendations on websites and 104.4% more likely to do so through posts or reviews from expert bloggers.

The platform’s users tend to be discerning shoppers too, with 63.3% researching products online before buying them and 42.3% trusting what online reviews say about products and services. They are 55.2% more likely to look for expert opinions before buying expensive products and 39.4% of them tell their friends and families about new products. They are also 73.7% more likely to buy products and services to access the community built around them.

Popular D2C topics on Quora in Australia & New Zealand

Quora users in Australia & New Zealand have been showing interest in a variety of topics in the D2C space.