With the widespread use of digital technologies and online shopping and marketing, one thing that has become the most sought after is data. All companies, big or small, from every industry, firmly believe that data is the key to better revenues. Data helps brands understand their customers and market their products better.

The importance of data has led to the rise of a new species of brands - the direct-to-consumer (DTC) brands. These are brands that by-pass the middlemen and reach their customers directly wherever they are.

Harvard Business Review reports that as of 2018, 400 DTC brands had sprung up, after seeing the success of brands like Glossier. According to TechCrunch, venture capitalists have invested between $8 billion to $10 billion in DTC brands.

Another reason for the acceptance of DTC brands has been the growing share of Gen Z shoppers. Gen Z prefers these online brands to their legacy counterparts by 40-45%. This generation of tech-savvy individuals are drawn to DTC brands which use online platforms heavily, and speak directly to their customers. 

New age brands are understanding the key pillars of authenticity, sustainability and ethical retail of Gen Z shoppers, who have an increasingly low attention span. This report looks at the key attributes of this generation and how DTC brands have captured their attention.