From TikTok to Youtube, from the high-street to the internet, from Web 2.0 to web3, direct-to-consumer (DTC) startups are pushing the boundaries of their business model to meet consumers where they are.

Their adaptability and resilience in the current climate marks the emergence of a new way of doing business minus the middleman: a model I’ve taken to calling Connect To Consumer (C2C).

Startups adapt to post-pandemic economy

Direct to Consumer Retail (DTC), where consumers shop directly with retailers online, has defined the last decade of commerce.

Empowered by savvy social media and smart online advertising, companies from Gymshark and Huel, to Ooni and Tropic Skincare have created multi-billion dollar retail brands selling direct to shoppers, without any intermediary. This trend only accelerated during the pandemic: three fifths of us purchased from a DTC brand at least once last year.

But the DTC model that propelled so many businesses to success in the past decade is now being called into question. Is one pathway to sell to customers enough to survive the storm ahead? That’s the question many find asking themselves. 

Startups are finding new ways to pivot, explore new selling surfaces and engage customers in new ways, from direct shopping within social media apps to blockchain-based, token-gated experiences. And all of these avenues will form a new model that brings a new dimension to DTC.

Enter Connect to Consumer (C2C)

The DTC model has worked so successfully until now because social media networks made it easy and affordable to reach highly targeted potential customers.

But with tech giants such as Apple now restricting digital advertisers’ reach, and the subsequent increase in advertising costs, it’s no longer enough for scaling start-ups to focus on paid social media advertising. And at a time when operational efficiency is top of mind, alternatives are sorely needed.

So ambitious startups are focusing on creating stronger connections with consumers across multiple pathways through different online and offline channels. This is the approach we’ve dubbed Connect To Consumer (C2C).

C2C places authenticity, loyalty, and trust at the heart of every consumer interaction. By making the purchase an experience, a central part of a customer's values and leisure time, retailers can build greater loyalty and interaction with an increasingly distracted and frugal customer.     

If DTC was pathway to consumers, C2C is many

Going direct to shoppers online was an effective single route for startups, but in a more challenging, diverse landscape, startups need to cultivate more pathways to their customers.

If DTC was one channel for startups to reach customers, C2C is going direct to those same consumers across every surface – and keeping their attention long term.

So stores will become showrooms for online purchases. You might buy a product directly through TikTok or YouTube while watching an influencer you follow. Digital assets such as NFTs meanwhile will unlock exclusive online offers or even VIP experiences in the real world. 

Start-ups can’t afford to sit on the side lines. The ones that will thrive in this environment will be those that can operate across every surface, offline and online, creating a conversation with customers at every touchpoint from an online store to a market square stall.

Out of adversity comes opportunity

If DTC startups shaped the 2010s, C2C will shape the 2020s and beyond. So startups must shift focus from one-off transactions with customers and instead seek to create authentic, trusted and bespoke experiences for their end-users.

They must become channel agnostic and offer a shopping opportunity everywhere, from local punters on the high street to millions on YouTube or niche communities via web3.

The entrepreneurs who adapt to a C2C model and build across multiple pathways will be best placed to find opportunity in tough economic circumstances, and grow their startup into a here-to-stay.