Modern Retail Research: As DTC dominates, marketplaces edge out retailer channels for brand investment

While brands are primarily focusing on their own DTC channels, new survey results show that marketplaces are beating retailers as targets for brand investment.

What happened

Brands are primarily focused on their owned e-commerce sites. As for other sales channels, new survey results show that marketplaces are now winning slightly more brand investment than retail partner-owned digital platforms.

Why it matters

For brands and retailers responding to Glossy and Modern Retail’s Q1 2023 survey, marketplaces came in second place, in terms of the sales channel accounting for most investment from brands. In first was brands’ owned e-commerce platforms. Retail partners’ owned digital channels and physical stores tied for third, each chosen by 14% of respondents.

When asked where their company will focus sales channel investment over the next 12 months, 48% of brands and retailers said their e-commerce site. As direct connections with customers become more of a priority, brands are building out their online capabilities to win their customers’ e-commerce sales.

For its part, YSL Beauty has made directing customers to its e-commerce site a central element of its NFT strategy. Customers who bought into its latest Opium perfume NFT launch in January received a physical and digital gift with purchase, but only if they bought the Opium perfume through the brand’s website.

This news brief is based on reporting published by Modern Retail on 2023-03-22. The original report is linked below.