By Susannah Schofield OBE, above, Director General of the Direct Selling Association
As the Direct-to-Consumer (D2C) space continues to evolve, start-ups and SMEs are uniquely positioned to capitalise on emerging trends. From hyper-personalisation to the rise of socially conscious shopping, here are four key D2C trends that SMEs should be ready to embrace in 2025.
Personalisation
Personalisation has long been a buzzword in retail, but, in 2025, it is becoming a baseline expectation, with many consumers now viewing tailored shopping experiences as a standard rather than a luxury. For SMEs, this represents both a challenge and an opportunity.
Personalisation in 2025 goes beyond just product recommendations; it’s about creating an entire experience that speaks to the individual — something that small brands can do more quickly and flexibly than larger competitors.
For start-ups, the tools to facilitate better personalisation have never been more accessible. By leveraging data analytics, AI-driven tools, and advanced customer relationship management (CRM) systems, even small businesses can deliver highly tailored experiences that delight customers and drive conversion rates.
Thanks to advancements in AI and machine learning, D2C brands can now leverage hyper-personalisation — offering individualised, bespoke content, and personalised customer journeys that feel uniquely crafted for each shopper.
‘Retail-tainment’: Shopping as Entertainment
In 2025, the concept of ‘retail-tainment’ — shopping as entertainment — is set to gain increasing traction. It’s reported that global consumers are willing to pay more for an engaging shopping experience and D2C brands are well-positioned to take advantage of this trend. Whether it’s through live-streaming, interactive product demos, or immersive shopping experiences, SMEs can redefine the customer journey by integrating entertainment with the act of purchasing.
The success of direct selling party-plan models such as those made famous by the likes of Ann Summers, whether online or in-person, highlights how well D2C brands can combine shopping with social interaction and entertainment. By creating engaging, fun, and crucially, social, experiences, smaller brands can tap into a powerful new way of connecting with customers. The appeal of live events, virtual parties, and engaging content goes beyond product promotion; it builds a deeper relationship with your customer base and keeps them coming back for more.
Socially Conscious Shopping: Aligning with Gen Z’s Values
As Gen Z is expected to represent 2.56 billion consumers globally by 2025, their values are increasingly shaping the future of consumerism. This generation cares deeply about the social and environmental impact of their purchases, and this means placing their trust – and purchasing – in brands that align with their values. Socially conscious shopping within D2C is not just a trend, it’s a movement that D2C brands have been at the forefront of for years – pioneers such as The Body Shop at Home being a good example. SMEs have the opportunity to lead the charge in a similar way.
From being transparent about sourcing to fairer production processes and better sustainability practices, Gen Z wants brands that not only take a stand on the issues that are important to them but also proactively engage in authentic Corporate Social Responsibility (CSR) initiatives.
Omnichannel Evolution: Expanding Reach Beyond Digital
Over recent years, digital channels have become a cornerstone of many D2C brands, but there are growing moves by many of the major players (not least Avon) that suggest omnichannel is the next frontier.
As we move into 2025, D2C brands are increasingly diversifying their retail channels to grow brand awareness and enhance accessibility. This can mean integrating physical retail spaces, leveraging partnerships, and tapping into online marketplaces alongside their direct-to-consumer channels. For SMEs, this evolution provides a unique opportunity to explore new ways of connecting with customers—whether through pop-up stores, collaborations with larger retail chains, or diversifying their presence on popular online marketplaces. Brands like Avon, Usborne and Ann Summers have successfully integrated both online and offline touchpoints to build stronger, more accessible consumer relationships.
SMEs can follow this model by creating seamless, integrated experiences that meet customers where they are — whether online or in a physical store, at home or on-the-go.
As the D2C landscape continues to evolve, start-ups and SMEs have a significant opportunity to tap into these four key trends to stay ahead of the competition and progress despite economic headwinds. By embracing these developments, small brands can build engagement with their audiences and future-proof their businesses in a rapidly changing market. The future of D2C is exciting, and for SMEs, the time to adapt and innovate is now.
