Which of these businesses is NOT a direct-to-consumer brand that has been made possible by the digital transformation of business?

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Question restatement: Which of these businesses is NOT a direct-to-consumer brand that has been made possible by the digital transformation of business?

Option 1: Harry's. This is a classic example of a direct-to-consumer brand: it launched online, sells primarily through its own website and mobile app, and leverages digital marketing and data-driven personalization to reach customers without relying on traditional retailers. The digital transformation enabled its direct relationship with buyers and streamlined supply chains.

Option 2: Costco. Costco operates primarily as a warehouse club with a membership model and a heavy emphasis on physical store experiences. While it has online shopping, its core business is not built around direct-to-consumer digital channels or the online-first, direct-sales approach that characterizes the other brands listed. The bulk of its value comes from bulk retail, negotiated vendor terms, and store-based checkout rather than a pure digital-to-consumer strategy.

Option 3: Peloton. Peloton markets its connected fitness products directly to consumers and pairs them with a subscription service for ongoing content. This is a textbook case of a direct-to-consumer model enhanced by digital platforms (device connectivity, streaming content, app ecosystem) as part of the digital transformation of business.

Option 4: Casper. Casper popularized the DTC mattress model, selling primarily online with ship-to-home convenience and extensive digital marketing, supported by a direct customer relationship rather than relying on traditional brick-and-mortar retailers.

Option 5: Dollar Shave Club. Dollar Shave Club rose to prominence as a direct-to-consumer brand that uses online channels, subscription pricing, and digital customer engagement to reach and retain customers, illustrating a direct-DTC approach enabled by digital transformation.

Summary: The digital transformation in business has empowered most of these brands to operate directly with consumers via online channels and subscription models. However, Costco stands out as the non-direct-to-consumer, store-centric model among these options, making it the exception in the context of DTC enabled by digital transformation.

Test: Exam 3

Which of these businesses is NOT a direct-to-consumer brand that has been made possible by the digital transformation of business?

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