Manufacturers are Cutting Out the Middleman: The Direct‑to‑Consumer Revolution
In the UK, a quiet revolution is unfolding in the manufacturing world. Instead of sending their products through the usual maze of wholesalers and retailers, about 73% of companies are now selling straight to their customers. This shift is giving them a razor‑sharp edge—sales have surged 55%, and DTC accounts for 16% of all UK manufacturing revenue.
How the Numbers Stack Up
- Revenue boost: 45% up for those who’ve embraced DTC
- Customer base expansion: 38% happier with larger audiences
- Speed to market: 32% faster from production to the doorstep
Take Nike, for example. They launched Nike Direct last year, putting their own showroom on the internet. And it’s not just the giants—start‑ups like Eve Mattresses and Harry’s Razors began as pure DTC brands and are now expanding into brick‑and‑mortar across the UK.
Why This Isn’t Just a Trend, It’s a Boom
Barclays’ latest Corporate Banking Manufacturing report (yes, that’s a mouthful) predicts the DTC market could hit £13 bn by 2025. That’s a staggering increase in just a few years. And the ripple effects? The wider UK economy could receive an extra £32.5 bn over the next five years—all thanks to manufacturers going it alone.
Word from the Desk Chair
Lee Collinson, Head of Manufacturing at Barclays, summed it up like this: “This is one of the biggest changes the manufacturing industry has seen in generations. By cutting out the middleman and selling directly, companies are not just saving on costs—they’re gaining control over marketing, distribution, and customer care. The results speak for themselves—with almost half of DTC‑focused firms reporting revenue growth, customer expansion, and even a chance to personalize products.”
He also warned that wholesalers and retailers aren’t going out on the floor just yet. “They’ll need to adapt and get flexible,” he’s said. “But expect a mix of DTC, wholesale, and retail to coexist.”
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