The DTC Recession Playbook

It has been a turbulent couple of years for direct-to-consumer brands. The pandemic brought a surge in demand for some as consumers stayed home and primarily shopped online, while others saw a decrease for products that were no longer relevant. In 2021, the industry saw supply chain challenges plague some brands, while others reached maturity, finding an exit and taking advantage of the frothy investor market.

2022 has been a much different environment. The continuation of uncertainty following the pandemic has put a dampener on consumer demand and investor confidence. As we find ourselves swiftly approaching the end of the year, in the midst of a cost-of-living crisis and facing a recession, a first glance at DTC’s 2023 doesn’t look much brighter.

Reflecting on our learnings from the past few years in the DTC landscape, we have created this report to share our strategies for DTC brands facing the turbulent landscape ahead. While things look bleak, 2023 is rife with opportunities for DTC to continue its growth and prioritise profitability as consumer confidence returns.