What does the term direct-to-consumer (DTC) refer to?

The term direct-to-consumer (DTC) specifically refers to manufacturers or producers selling their products directly to end customers without the involvement of intermediaries such as wholesalers or retailers. This approach allows manufacturers to establish a direct relationship with consumers, manage their branding, pricing, and customer service more effectively, and often results in better margins by eliminating the middleman. As a result, DTC models have become increasingly popular, especially among startups and in industries like fashion and beauty, where direct consumer engagement can enhance brand loyalty and customer experience.

The other options incorrectly characterize the DTC model; for instance, wholesaling involves multiple channels rather than a direct connection with the end consumer, and products marketed only online is a limitation that does not encompass DTC practices that may also include physical locations or other channels. Retailers selling directly to consumers also do not capture the essence of DTC because in that scenario, retailers, who are intermediaries themselves, are involved in the process.