Enhancing direct-to-consumer connections
Executives have high hopes for growth, but value remains elusive
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How KPMG can help: Consumer & Retail
According to a recent KPMG survey results of 100 executives at consumer and retail brands, who leverage DTC channel strategies, DTC is poised for growth. In fact, of those that launched a DTC strategy more than five years ago, 73 percent view the DTC channel as a main driver of growth across their brand.1
A channel for growth
Executives in our survey cite the potential for incremental sales (51 percent), improved gross margins (40 percent) and greater consumer engagement (28 percent) as top reasons for launching a DTC business.2 To stay competitive, many businesses leveraging DTC strategies are evolving their approaches to increase access to their brands.
Incremental sales and improved gross margin were the most popular reasons for launching a DTC business for SVP/VP’s
Where’s the value?
While DTC remains an important strategic channel, challenges need to be overcome for its performance to live up to its promise. This is especially true when it comes to the lack of understanding of the performance and profitability of a company’s DTC business. For instance, only 20 percent of the non-finance executives surveyed were very confident their business accurately measures true DTC profitability. This compares to 56 percent who cited average confidence and 22 percent that think their company doesn’t allocate profitability measures accurately.3
Non-finance executives are less confident than finance executives that their company understands true profitability
Footnotes
- KPMG Direct-to-consumer survey, September 2022. Slide 18.
- KPMG Direct-to-consumer survey, September 2022. Slide 9.
- KPMG Direct-to-consumer survey, September 2022. Slide 36
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Enhancing direct-to-consumer connections
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Meet our team
Matt Kramer
U.S. Line of Business Leader, Products, KPMG LLP
Duleep Rodrigo
U.S. Sector Leader, Consumer & Retail, KPMG LLP
Sam Ganga
U.S. Consulting Leader, Consumer & Retail, KPMG LLP
Sunder Ramakrishnan
Principal, Advisory, Strategy, KPMG US
Matt Kramer
U.S. Line of Business Leader, Products, KPMG LLP
Duleep Rodrigo
U.S. Sector Leader, Consumer & Retail, KPMG LLP
Sam Ganga
U.S. Consulting Leader, Consumer & Retail, KPMG LLP
Sunder Ramakrishnan
Principal, Advisory, Strategy, KPMG US