When you think about where direct to consumer (DTC) came from, it started with a simple concept: Anyone could come up with an idea and create their own online store. Then in the mid-2000s, e-commerce platforms like Shopify made it easier for anyone to launch an online store. And social media giants like Facebook (now Meta) gave brands new ways to reach customers directly, and that’s really where this whole world was born.

During the 2000s, DTC was dominated by massive mail order catalogs and late night TV was a wild west of “as seen on TV” products that promised to change lives. The DTC revolution started when disruptors like Warby Parker, Dollar Shave Club, Casper, and Blue Apron showed everyone that slick websites and cheeky ads plastered all over Instagram feeds and subway commutes was a legit business model. These brands mastered the DTC playbook—-cutting out the middleman, slashing prices, and turning customer feedback into product gold.

The 2010s brought the DTC boom with companies like Warby Parker, Allbirds, Casper, and Away, proving that DTC could build massive brands by cutting out retailers and going straight to consumers with clever marketing and subscription models.

Today, DTC has evolved from a scrappy alternative into the mainstream (nearly every major brand has some direct sales component) and is an essential part of how all modern brands operate. Even brands like Levi’s have been doubling down on their own DTC channels to present a more revamped brand and direction.

The big challenge facing DTC brands today is the rising cost of customer acquisition, two DTC experts told Retail Brew. However, the impact of AI, particularly ChatGPT, on consumer behavior and advertising strategies is potentially going to be one key game-changer for the future of DTC. While DTC isn’t going away, it’s about to get disrupted in interesting ways.

Keep reading here.—VC

In his own words, David Simon, CEO of Simon Property Group, “let the cat out of the bag” last week when he said enclosed shopping centers should be priced higher.

“The market absolutely unequivocally misprices big enclosed shopping centers,” he said. “Because if you look at the cash flow growth and the longevity, forget about it. But that’s fine with us, and it’s good for us.”

He pointed to the real estate investment trust’s recent purchase of Brickell City Centre in downtown Miami for more than $500 million. The center isn’t exactly enclosed—it has a glass shelter or canopy called a “Climate Ribbon”—but the point stands.

“Brickell should have been sold at an auction at a higher price than what we paid,” Simon said. “But the market is mispriced when it comes to high quality.”

Keep reading here.—AV

TikTok and Instagram will have you believe that Gen Z truly is the forever online generation. But a new study by YouGov finds that might not be the whole truth.

While online shopping is definitely huge, younger consumers prefer somewhat of a balance between the digital and the IRL.

• In fact, 50% of Gen Z actually discover new products through friends, family, or colleagues, while 46% find them browsing in stores.
• Likewise, 29% spot an item online but purchase it in-store, while 21% do the reverse.

In other words, retailers can’t afford to pick a side: Omnichannel is where the action is.

While 69% of Gen Z did begin their “decision-making” process online, 53% still went to browse in stores.

Keep reading here.—JS