here Etsy outperforms Amazon

Etsy is expected to post the strongest sales growth, followed very closely by Walmart, Chewy, and Amazon. Conversely, Best Buy is expected to have soft sales as consumers move to other categories outside home and electronics post-pandemic. Amazon Is a Clear Winner; Walmart to Gain Share Again.

The D2C movement launched several startups that are destined to be power brands, if they haven’t achieved that status already: Peloton, Warby Parker, Glossier, Brooklinen, Chewy, and Quip, to name a few.

Pet care provider Chewy.com has been an early winner in the pet care space, reporting a Q1 2020 sales increase of 46% to $1.62 billion and its fastest acceleration in new customer acquisition on record. Walgreens and CVS take the brunt of Amazon’s continued encroachment into this category.

“Ecommerce companies like Chewy, for example, have a great system in place that is playing out favorably for customers who are on their auto-ship program,” Cieciuch said. “They reach out to auto-ship clients and ask if they would like to make order renewals sooner to avoid delays. This helps win loyalty.”.

The top D2C advertiser by estimated spend was Chewy ($157.2 million), followed by Peloton ($138.6 million). D2C brands advertising on TV use some traditional approaches while incorporating creative and measurement strategies from the D2C playbook. According to research from TVSquared, nearly half of D2C brands’ TV spots are less than 15 seconds.

D2C brands certainly had a good year in 2019, as several joined the unicorn club with major fundraising rounds putting their valuations over $1 billion, while others like Peloton, The RealReal, SmileDirectClub and Chewy.com had IPOs valuing them each at several billion dollars. Other D2C brands have exited through acquisitions by larger retail and brand conglomerates.