Business Development Glossary
Direct-to-Consumer Model
Meaning & Definition
Direct-to-Consumer (DTC) Model
- Definition: A sales approach where businesses sell their products or services directly to customers, bypassing traditional intermediaries such as wholesalers or retailers.
- Why It’s Popular in the UAE: High internet penetration and consumer trust in online transactions have allowed brands to engage directly with their audiences through digital channels.
- Examples in the UAE:
- The Giving Movement: A UAE-based sustainable fashion brand selling premium athleisure directly through its website.
- Namshi: While primarily an online retailer, Namshi offers its own DTC lines alongside third-party products.
- Rove Hotels: Encourages direct booking through its website for exclusive deals and seamless customer interaction.
- Key Benefits:
- Strengthens customer relationships through personalized experiences.
- Allows businesses to control branding, pricing, and marketing.
- Improves margins by eliminating intermediary fees.