Many brick-and-mortar stores have an online presence, but not all online stores have in-person locations. Physical stores, with an 85% share of the market, still dominate - yet most people wrongly believe that brick-and-mortar retail is being pushed out by e-commerce. 

In today's digital world, routine purchases are being made online daily. However, most consumers still prefer in-person shopping. Instant gratification is compelling. Brands have always understood the magic of hands-on consumer-product interactions. In a brick-and-mortar store, customers can see, touch, and try a product before buying, and immediately take it home.

The Birth of Direct-To-Consumer

When online shopping became common, brands jumped at what they thought was the opportunity to build a direct-to-consumer relationship. After two decades of online selling, it became obvious to many brands that online they were missing the magic of customer-product interaction in brick-and-mortar stores (85% of all sales). In the direct-to-consumer (DTC) channel, brands with an existing online presence expand into their own brick-and-mortar locations. This gives the brand more name exposure, showcases their full product line, and puts them in control of messaging and revenues. Even in the past year, DTC has surged, demonstrating that even a serious pandemic has not been an obstacle to its growth.

Now, customers want even more, saying in recent surveys that they engage equally with online and offline shopping channels, making multichannel the new norm. They want all the great aspects of e-commerce (reviews, ratings, price comparisons) along with the best of brick-and-mortar (instant delivery, the chance to touch, see, and try products) all in one place. Facing demand for multichannel services, brands and retailers are adapting to the rapidly changing market.

Successful Direct-To-Consumer Brands

Successful DTC brands are value-driven, have a highly personalized user experience, are convenient, and generally more affordable. 

Nike, a brand known worldwide, has moved aggressively into brick-and-mortar retail. Opening their own retail stores, while having an immense online presence, has increased their brand recognition and product sales. 

Not all DTC brands are giants like Nike. An emerging brand, founded in Northern California and thriving in the DTC market, is 100% Pure, a retailer of organic cosmetics. 100% Pure has successfully expanded from an online-only brand into physical locations. 

However, brick-and-mortar stores can be expensive to open and maintain. Smaller brands may have difficulty supporting a physical location in every desirable market. Advances in technology have made it easier to connect directly with consumers to sell a product. The future of retail is to utilize an omnichannel platform to connect brands and consumers to one another.