E-commerce trends
What is the D2C (Direct to Consumer) model in 2026?
Ana Martinez
January 15, 2024
Direct to Consumer (D2C) is a business model where brands sell their products directly to end customers, bypassing wholesalers, distributors, and traditional retailers. By owning every step from production to delivery, D2C brands control their margins, customer data, pricing, and brand experience. The global D2C market is estimated at roughly $900 billion in 2026, with 64% of consumers now buying directly from brands (Thunderbit, 2026).
E-commerce and social media have brought brands closer to their customers than ever before, and the D2C model sits at the centre of that shift. Consumer choice today goes beyond price or product quality: storytelling, personalisation, delivery speed, and post-purchase experience are what set winning brands apart. The D2C model offers companies a different way to interact with their audience and sell without the cost of intermediaries.
Below, we break down what D2C means in practice, why it works, the challenges to expect, and how to launch or transition your brand into a Direct to Consumer model.
1. What does Direct to Consumer (D2C) mean?
Traditionally, the supply chain has involved several links, from the manufacturer to the wholesaler/distributor, ending with the retailer and its customers.
Each step from one actor to the next often involves lengthy negotiations, additional costs and delays. The main drawback of this sourcing model is the need for more agility for brands, for whom each new launch implies a lot of waiting and frustration.
The Direct to Consumer strategy breaks these chains and eliminates the middleman. Companies following it control every step, from manufacturing to distribution, and can sell their products directly to their end consumers.
By eliminating the middleman, brands that choose D2C gain greater freedom.
They also benefit from a better knowledge of their customers base and the ability to adapt their offer to their (constantly changing) needs. D2C companies also can create a customised customer journey and experience. An effective way to differentiate themselves from traditional brands is by trying to beat them at their own game rather than by positioning themselves in proximity to their customers.
1.1 How did D2C grow from the United States to Europe?
The D2C trend started in the United States. The first brands to make a name for themselves in this space emerged in the early 2010s, particularly in the fashion sector. Examples include the eyewear brand Warby Parker, Bonobos and Everlane for clothing, and The Honest Company for beauty.
The model has since attracted major corporations, many of which have built or acquired their own D2C channels.
Unilever acquired Dollar Shave Club for $1 billion in 2016, but sold the brand to private equity firm Nexus Capital Management in late 2023, retaining a 35% stake. Walmart bought Bonobos in 2017 for $310 million as part of its own D2C push, then divested it in 2023. These moves show how quickly D2C ownership can shift as large retailers refine their strategies.
Adidas aimed to generate 50% of its sales through D2C by 2025. By the end of 2025, Adidas posted record revenues of €24.8 billion with 13% currency-neutral growth, driven in part by its direct channels.
Some companies even fully pivoted to being D2C as part of their sales strategy, like Loop Earplugs for example.
A study by Club CMO and Epsilon-Conversant found that 80% of major retail brands believe D2C companies impact their business, forcing them to rethink their marketing strategies.
By 2026, over 20% of manufacturers in the EU sell directly through their own websites or apps (Statista). Top D2C retailers in Europe by net sales include Apple ($15.2 billion), Shein ($13.9 billion), and Ikea ($8.7 billion), according to http://ecdb.com (2025).
Fashion was one of the first markets to adopt it, with brands such as Gymshark and Sézane. Jewellery (Gemmyo, Edenly), leather goods (Dymant), optics (Jimmy Fairly and Polette) and bedding (Tediber) followed closely. Not to mention cosmetics brands (such as Baija, Horace or e.l.f.) that have become leaders in recent years.
2. What are the advantages of the Direct to Consumer model?
The main advantages of the D2C model are higher profit margins (no wholesale markup), direct access to customer data, the ability to personalise products and marketing, and faster reaction to market shifts. Brands like Gymshark and Sézane built multi-million-euro businesses by owning these pillars.
2.1 Fewer intermediaries, more margin
Eliminating the players that stand between you and your customers allows you to regain control of your profit margin. When you cut out wholesalers and retailers, the markup they would have taken stays with your brand. That extra margin can fund product development, marketing, or simply let you offer more competitive prices to your customers.
That's good news for your loyal customers since you won't have to inflate the price of your products to make a profit. But also for your brand, because the fees or commissions you used to reserve for your partners can now be reinvested in your growth strategy. For example, improving your website, growing your social media presence, investing in product R&D, or building your email lists.
2.2 More direct communication with your customers
Intermediaries don't just cut your margins; they can also blur communication between your brand and its customers.
When you depend on other companies to sell your product, you miss a lot of data that could be invaluable to your brand's development. Data has become one of the most valuable digital native brand assets. For example, LePantalon's omnichannel approach stimulates continuous innovation and allows it to launch new collections faster.
Unlike brands that go through traditional retailers to sell their products and who only have information from their inventory, you can test your offer. But also to make your prices evolve or to suggest complementary products to the checkout.
Data such as the shopping cart abandonment rate or the churn rate of your e-commerce site will also allow you to better understand your customers' journey.
2.3 A personalised offer, therefore more impactful
Another advantage of the Direct to Consumer model is your ability to understand and interpret your customer data. This data allows you to tailor their shopping experience (online and offline). It is also an opportunity to evolve your product line to better match your market's expectations.
You can better understand their needs by multiplying the contact points with your personas on different digital channels (like social networks, via your website, etc.). And thus, personalise your offer to make it even more desirable. This is even more crucial for a young brand that wants to enter an ultra-competitive sector (like fashion or beauty).
The D2C allows one to adopt a personalised approach and differentiate oneself on criteria other than price or brand loyalty.
Take the example of Bar à Boucle, which interacts with its customers through networks and workshops and via a diagnostic tool on its website, which allows it to target their needs very precisely to offer highly personalised products. This data is then used to develop the brand's offer and grow their email lists.
2.4 More agile and resilient to market disruptions
Supply chain shocks, from pandemic-era disruptions to the Red Sea shipping crisis of 2024, proved that brands relying on long intermediary chains are the most vulnerable. D2C companies that control their own supply chain can pivot faster: adjusting sourcing, switching carriers, shifting fulfilment partners, or rerouting inventory without waiting for a retailer to approve the change.
Speed of reaction matters. Brands working with fulfilment platforms like Bigblue or ShipBob can redistribute inventory across warehouses in days, keeping delivery promises intact even when one route is blocked. Inventory management is one of the most important operational levers for any D2C brand.
Look at how the men's shaver market has been completely transformed in less than fifteen years. We have gone from the hegemony of a brand like Gillette, which held more than 70% of the market share, to the rise of newcomers like Dollar Shave Club and Harry's.
Faced with positioning challenges and the rapid emergence of values that brands are expected to align with, from environmental sustainability to social justice, agility is not a competitive advantage but a necessity.
3. What are the challenges of direct selling?
The Direct to Consumer model is not a guaranteed path to success. Before adopting it or transitioning to greater independence from your intermediaries, it is important to understand the potential costs and the risks involved.
We recommend that you consider, among other things:
- The complexity of positioning. Without resellers to support your distribution, you will have to work harder to make your brand stand out! You must make sure your target audience discovers your offer on the channels (via advertising or content creation on social networks). While brands that opt for D2C often perform well in sales and customer loyalty, they generally need help to gain awareness.
- Complex management. It is up to you to control everything, from producing your items to the branding of their packaging, including their storage and delivery. To manage a D2C business, you must invest in the right resources, especially logistics. This is a prerequisite to match the service retailers offer to their customers.
4. How to launch your D2C brand or transition to the Direct to Consumer model?
Launching your brand using the Direct to Consumer model has its challenges. But none is unachievable, especially if you lay the proper foundation!
Here are our tips for successfully using this model:
4.1 Work on the storytelling of your brand
A common thread in many D2C brand success stories is the strength of their storytelling. And their ability to attract and retain their target audience by embodying this story in the person of their founder.
Whether in fashion (with Pauline Torres and Pauème) or in beauty (through Justine Hutteau, the founder of Respire), the link between a successful D2C and its customers is even more vital when a real person mediates it. This is an excellent way to answer the "why" of the brand's existence, which is crucial when markets are crowded.
The founder embodies the brand's mission and justifies its creation and relevance in a human, emotional way.
4.2 Start with a limited selection of items
A limited product line allows you to test your distribution model before scaling. With a suitable distribution model and a reliable, fast way to get products to your customers, you will be able to get your brand off the ground.
So rather than blowing your product budget by developing a wide variety of products, focus on a few essential items. Then, ensure you can effectively get them into your consumer's hands before diversifying.
4.3 Packaging and delivery: two essential elements of the customer experience
The survival of your Direct to Consumer brand depends on more than just the quality of your product or your ability to segment your offering.
Research consistently shows that fast delivery is the top factor consumers consider when shopping online.
A considerable part of your customers' satisfaction depends on your ability to manage your stocks and your delivery speed (especially in the last mile), along with the branding and quality of your packaging.
They expect to receive their product as soon as possible, to be able to track it from your warehouse to their address and to open a package branded with your brand name.
The post-purchase experience is the key to building customer loyalty!
Choosing the right logistics partner is critical. Fulfilment platforms that specialise in D2C logistics handle storage, picking, packing, and last-mile delivery so you can focus on product and brand. According to Bigblue data from 600+ European D2C brands, orders fulfilled within 24 hours see a 26% higher repurchase rate. A branded unboxing experience adds another layer of differentiation that pure marketplace sellers cannot match.
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