# Run DTC’: It’s tricky, but here’s what the next evolution of ecommerce will look like Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-08 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: The Future of Brick-and-Mortar vs. Ecommerce Meta Description: Explore the evolving relationship between in-person and online shopping, trends in DTC brands, and the importance of maintaining a strong physical presence URL: https://financedigest.com/run-dtc-its-tricky-but-heres-what-the-next-evolution-of-ecommerce-will-look-likehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1319189527-1-1736816254939-compressed.jpg) _By **Steve Ryan,** Managing Director of DTC at_ [_Resident_](https://www.residenthome.com/) The decline of the brick-and-mortar store is a trend that I think we’re all quite aware of — and while reports of retail’s death have been greatly exaggerated, the broader shift from in-store shopping to seamless ecommerce and DTC options has been, and will continue to be significant. As the world hopefully begins to emerge from the worst of the pandemic, it’s possible we may see a renaissance in in-store preference, due in part to consumers missing the in-store experience as they were confined to their homes or adhering to social distancing measures. Thus, the in-store experience will continue to hold a level of importance. Still, brands will begin to differentiate their in-store and ecommerce experiences as they continue to lean into the new tools and technologies that will enable seamless DTC [shopping — trends like live](https://www.financedigest.com/the-high-street-is-dead-long-live-online-shopping.html "The high street is dead – long live online shopping! ") ecommerce, AR projections of clothes and furniture, and even digital storefronts in the metaverse will blur the line between physical and online shopping even further moving forward. In this article, I’ll speak to why [brick and mortar](https://www.financedigest.com/35-days-after-the-brexit-vote-uk-bricks-mortar-are-far-from-crumbling.html "35 days after the Brexit vote, UK bricks & mortar are far from crumbling") and ecommerce will continue to coexist in the short term, how their relationship will change and experiences will eventually fragment (i.e. the Ecommerce “spin-off”), as well as the [trends that I envision for ecommerce](https://www.financedigest.com/whats-next-for-ecommerce-payment-trends-shaping-the-industry.html "What’s next for eCommerce? Payment trends shaping the industry") and DTC brands in the near future. **[Brick and mortar](https://www.financedigest.com/why-this-aussie-entrepreneur-is-still-bullish-about-british-bricks-mortar-post-brexit.html "Why this Aussie entrepreneur is still bullish about British bricks & mortar post Brexit") vs. ecommerce through the pandemic and beyond** Consumers are still relatively split down the middle 50/50 in terms of preference toward in-store shopping or online shopping, according to the most recent [State of Consumer Behaviour](https://www.raydiant.com/blog/state-of-consumer-behavior-2021/?campaignid=15764881127&adgroupid=131441134053&adid=572626497262&utm_term=&utm_campaign=Coef+-+Search+-+Dynamic&utm_source=adwords&utm_medium=ppc&hsa_acc=1099925009&hsa_cam=15764881127&hsa_grp=131441134053&hsa_ad=572626497262&hsa_src=g&hsa_tgt=dsa-19959388920&hsa_kw=&hsa_mt=&hsa_net=adwords&hsa_ver=3&gclid=Cj0KCQiA9OiPBhCOARIsAI0y71CelFCPxa3qCkhgpTer7-zeN8XLetWYMJ0HEP78OvqPI-kuisNCf4caApnLEALw_wcB) report from Raydiant, with ecommerce gaining a slight edge — 46% of respondents would prefer to shop in person rather than online. Reasons cited for preferring in-person [shopping include seeing and touching the merchandise (33%), enjoyment of the physical shopping experience](https://www.financedigest.com/two-thirds-of-millennials-seek-innovation-when-it-comes-to-their-in-store-shopping-experience.html "TWO THIRDS of Millennials seek innovation when it comes to their in-store shopping experience") (26%), and aversion toward waiting for delivery (13%). It follows that in-person, or “offline” shopping experiences will continue to play a large role in how consumers shape their perceptions of brands and their products as well; in the same report, 90% of consumers [say they are more likely to return](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says") to a brand, 61% of consumers say they are likely to spend more at a location and 65% of consumers say they are likely to spend more online with a brand, all if they have had a positive experience offline. This [data underscores the importance of brands maintaining a positive](https://www.financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experience.html "Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience") and memorable physical presence, whilst continuing to invest in their ecommerce and DTC offerings. The pandemic may have briefly forced consumers inside, but physical [retail is holding on for the time](https://www.financedigest.com/finger-pointing-helps-no-one-it-is-time-for-retailers-energy-providers-and-government-to-band-together.html "Finger-pointing helps no one: it is time for retailers, energy providers and government to band together") being. Brands that hope to succeed in the [future must keep a close eye on evolving consumer spending habits and seamlessly integrate their physical and digital](https://www.financedigest.com/smarter-safer-stronger-cybersecurity-is-now-critical-to-digital-future.html "Smarter, safer, stronger cybersecurity is now critical to digital future") experiences. **Changing consumer [spending patterns](https://www.financedigest.com/increasingly-flexible-working-patterns-drive-up-it-and-technology-spend-across-europe.html "Increasingly Flexible working patterns drive up IT and technology SPEND across europe") and comfort zones** As the world continues to emerge from the full bore of [COVID-19 and its subsequent restrictions](https://www.financedigest.com/factbox-britain-scraps-all-remaining-covid-19-restrictions.html "Factbox-Britain scraps all remaining COVID-19 restrictions"), consumers are beginning to cautiously look ahead to the hope of an endemic phase to the pandemic, which will bring with it both a return to former shopping behaviours and some evolved ones. Research from [NielsenIQ](https://nielseniq.com/global/en/insights/analysis/2022/the-2022-state-of-consumers/) indicates that over 60% of fully vaccinated US adults and nearly 70% of boosted adults will continue to live life but “with some caution”, and nearly 20% of boosted adults “no longer fear COVID-19 at all”. [Despite this relative relaxation about COVID](https://www.financedigest.com/asias-factory-activity-contracts-despite-chinas-covid-reopening.html "Asia’s factory activity contracts despite China’s COVID reopening"), consumer’s reported spending intentions for 2022 still reflect a shift away from out-of-home spending on things like dining and entertainment (both down -31% year over year, according to the NielsenIQ report) and mostly toward essentials like groceries (+23%) and utilities (18%). Further, most [consumers rated their physical and mental well-being highest](https://www.financedigest.com/u-s-consumers-inflation-expectations-highest-in-8-years-ny-fed-says.html "U.S. consumers’ inflation expectations highest in 8 years, NY Fed says") in order of priorities (65 and 63%, respectively). While [maintaining some physical presence is key for brands](https://www.financedigest.com/how-a-british-brand-catered-to-hnwis-can-maintain-its-position-within-the-global-luxury-sphere-and-even-grow-in-these-current-circumstances.html "How a British brand catered to HNWIs can maintain its position within the global luxury sphere, and even grow, in these current circumstances"), the evident shift toward consumer spending online cannot be ignored. In 2022, as the pandemic continues to ease, some [brands will invest](https://www.financedigest.com/5-compelling-reasons-that-you-should-invest-in-branding.html "5 Compelling Reasons That You Should Invest In Branding") in a “spin-off” of their ecommerce experience that differentiates from their physical stores. **The ecommerce “spin-off” and the [evolution of DTC for a digital](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") future** When consumer spending habits and attitudes cater toward less dining, less going out to concerts or sporting events, and more [investment in future](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  ") security and mental and physical well-being of themselves and their families, it follows that the more significant brand touchpoint for these increasingly inward-focused consumers will be in the digital realm. Brands don’t have to recreate their physical [experience digitally](https://www.financedigest.com/choosing-the-best-digital-experience-platform-dxp-in-financial-services.html "Choosing the best Digital Experience Platform (DXP) in financial services"), nor should they try to. Each is separate and unique and should be celebrated as such. They should instead lean into the inherent strengths and capabilities of digital, boldly utilise new technologies like augmented and mixed reality, hold livestreams for customers to preview products and even [buy](https://www.financedigest.com/iag-agrees-to-buy-80-stake-in-air-europa-for-400-million-euros.html "IAG agrees to buy 80% stake in Air Europa for 400 million euros") “on the air”, and meet their customers where they are and will continue to be — that is, at home and online. Longer term, I believe DTC and retail in general will flip 180 degrees, with the [consumer becoming](https://www.financedigest.com/voice-assistants-set-to-revolutionize-commerce-and-become-a-dominant-mode-of-consumer-interaction-in-the-next-three-years.html "Voice assistants set to revolutionize commerce and become a dominant mode of consumer interaction in the next three years") the store, making brick and mortar effectively obsolete. [Think of a football kit or an F1 car splattered with logos of sponsors and owners — now imagine that on the person of the future](https://www.financedigest.com/the-pull-of-the-past-1-in-5-keep-items-they-think-will-be-valuable-in-the-future.html "The pull of the past! 1 in 5 keep items they think will be valuable in the future"), all the time, displayed digitally and alterable in a modular fashion. Enabled by wearables, smart clothing, and AR layers beamed onto the physical realm through peripheral devices or a heads-up display (think like Snap’s Spectacles, or Google Glass, but good), [customers will be reached](https://www.financedigest.com/uk-and-eu-reach-post-brexit-customs-deal-for-n-ireland-the-times.html "UK and EU reach post-Brexit customs deal for N.Ireland-The Times") directly by all brands and products, and wear and display whatever they choose (or can afford) on their physical/digital person or avatar. DTC brands will start to collaborate together to enable this new evolution of seamless customer engagement, since competition will muddy and there will be no need for physical separation of storefronts — any and all brands will be [available for consumers to peruse in the digital](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") bazaar, making Amazon look like a trading post. The pandemic [changed the world](https://www.financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070.html "Deloitte research reveals inaction on climate change could cost the world’s economy US8 trillion by 2070"), and in the sense of retail trends and consumer attitudes, it exposed at least two things starkly: 1. The sheer amount of money consumers spend on dining and entertainment has been given second thought, and many people are re-focusing their spending habits inward to [invest in their health and save for the future](https://www.financedigest.com/investing-in-the-future-with-alternative-web-data.html "Investing in the future with alternative web data"), and 2. The physical storefront, while still in the midst of dying by 1000 cuts, is still a source of comfort and genuine [brand interaction and perception-building for the vast majority of consumers](https://www.financedigest.com/how-cfos-of-consumer-brands-can-create-new-value-relevance-at-scale.html "How CFOs of Consumer Brands can Create New Value & Relevance at Scale"). Brands will do well to parallel-path their investment and adoption of future-focused, digital-first technologies for [future ecommerce](https://www.financedigest.com/intelligent-delivery-the-future-of-ecommerce-and-retail.html "Intelligent delivery: the future of eCommerce and retail") and DTC evolutions, whilst not neglecting their existing physical storefronts — especially until, and after, the pandemic ceases to have an outsize impact on our lives and the purchase decisions of consumers everywhere. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---