Direct-to-consumer (D2C) versus retail is often framed as an either-or proposition for brands.
Either they invest in their own D2C channel, or they focus on driving sales through their retail partners. However, recent consumer research indicates brands perform better when they embrace a hybrid strategy.
According to Salsify’s upcoming “2026 Consumer Research” report, 67% of shoppers now webroom, or research a product online before ultimately purchasing it in-store, and 53% showroom, evaluating products in-store while simultaneously checking online ratings and reviews before they commit to a purchase.
Brands can no longer afford to maintain channel silos. They need to adopt a hybrid commerce strategy that gives consumers flexibility, while arming their organizations with valuable data that optimizes conversions and drives growth.
To help brands transform omnichannel complexity into a competitive advantage, experts from Salsify, the ecommerce analytics company MikMak, and the French cosmetics company NAOS offered a roadmap during a recent webinar, “Beyond DTC vs. Retail: Winning With a Hybrid Commerce Strategy.”
Here are some insights and best practices for successfully executing a hybrid approach.
Brands have had good reason to prioritize D2C over retail, and vice versa.
D2C improves its margins and gives them direct access to first-party data, but it also comes with disadvantages, including limited distribution and ever-growing logistics costs.
Retail-focused brands enjoy greater distribution and scale from leveraging retailers’ established supply chains, shelf space, built-in shoppers, and consumer trust. However, the trade-off is lower margins and reduced control.
But brands should now strive for the best of both these worlds, according to Jessica Bell, director of strategy and operations at Salsify.
During the webinar, Bell shared several compelling statistics from Salsify’s upcoming consumer research report that indicate now is the time for brands to implement a hybrid commerce strategy:
Bell says shoppers now prioritize four key factors when deciding between retail or D2C.
Nearly two-thirds (64%) of shoppers choose to shop online versus in-store because of convenience.
“That tells us the path to purchase has to be flexible, not rigid,” Bell says.
Shoppers also want choice and availability. They want to find what they’re looking for and purchase it in the way they prefer.
The near-constant product availability drives 39% of shoppers online instead of in-store, while 36% prefer the wider product selection found online.
Trust and consistency matter, too.
“Shoppers want to feel confident they're getting the right product at the right price, with the same experience no matter what they buy or where they buy,” Bell says.
Well over a third of shoppers (38%) will abandon an online purchase when they see inconsistent product information across different channels.
“Consistency builds trust and trust drives conversion,” Bell says.
Price is still a top concern for consumers. They often compare prices across channels to ensure they're getting the best deal, and better pricing has swayed 65% of shoppers to purchase online instead of in-store.
Taken together, brands that want to win on both the digital and physical shelf need to cater to these shifting consumer expectations and behaviors. A hybrid strategy better positions them to give consumers what they need and want.
“Avoiding friction along the path to purchase is key to converting today's shoppers,” says Michael Rosenfeld, customer success lead at MikMak. “A hybrid omnichannel strategy empowers consumers to shop where and how they want, giving your brand higher conversion potential by catering to all consumer shopping preferences.”
Hybrid commerce drives value and better performance for brands in several ways because it:
A hybrid strategy also delivers data insights across channels, leading to smarter optimization. Rosenfeld gave the example of how one of MikMak’s clients has adopted a hybrid approach to improve performance.
The health and wellness brand learned that new customers who’d first purchase smaller pack sizes from its retail partners would make subsequent purchases through its D2C channel. They’d also buy large pack sizes on the D2C channel. Armed with these insights, the brand optimized its marketing by tailoring messaging to each segment, driving incremental sales across both retail and D2C.
“Data insights from both D2C and retail, with consistent measurement, helps you understand how your customers are purchasing across channels and potentially moving from one channel to another in order to tailor your product information and marketing to specific segments,” Rosenfeld says.
NAOS has implemented a hybrid model across three of its brands in 32 countries and used the strategy to drive shoppers to 250 different retailers across these countries.
Evgeniia Monnet, global business manager at NAOS, says the company has historically been focused on its retail partnerships, but has pivoted with the growth of digital channels.
“We saw the need to complement our e-retail presence with a presence on the marketplaces that are developing very fast, as well as building the brand’s D2C to strengthen our brand experience, build loyalty, and have some control over our data,” Monnet says. “This hybrid model allows us to balance reach with brand building.”
NAOS is using its retail partners and online marketplaces to drive volume, while it leverages its website as its “brand flagship” and “loyalty engine,” Monnet says.
She adds that the company only integrates a hybrid strategy in the markets where the context is favorable (meaning where NAOS has enough brand maturity and ecommerce is already a big growth driver).
Brands have to be intentional and perform due diligence before adopting a hybrid strategy. They must know which markets are best suited for this approach and ensure they have the necessary infrastructure to support their strategy, harnessing a unified product experience management platform to ensure brand consistency across markets and channels.
With a consistent brand story and experience across every touchpoint, brands can create a frictionless path to purchase — whether a consumer wants to buy directly from them or a retail partner.
“Empowering your consumers to shop where and how they want, when they want, is the path to success,” Rosenfeld says.