Also, the article links to a study which found DTC to be 10% more expensive than traditional retail.
Umm, I bought a no-name (but Gillette-compatible!) razor last week while travelling due to having left my usual kit at home.
Having used the no-name one for a week, I can no longer see any reason to pay the extra for a razor brand ever again.
Granted, I haven't looked at prices in a long time. I am mostly assuming not insane costs.
I'm not sure what "insane" would mean in this contect, but replacement blades for the no-name Gillette clone I bought are half the price of original Gillette ones.
My week using the former showed that, for me at least, the performance of the latter really doesn't justify its price. YMMV.
It's likely that even small companies are selling enough that these costs amortise to near zero.
I also cannot tell the difference between that and just buying safety razor blades, though there is a huge advantage (for me) in the pivoting head.
This is a gem of a phrase. I'm going to use 'geoarbitrage' from now on.
I live in a place full of this sort of nonsense, such as resold Clevo ODM notebooks, overly-cheap 'desktop projectors', overly-cheap TVs, water purifiers, and even air-conditioners. Oh, and the 'advertisers' are typically skimpily-dressed young women barely in university.
I simply refuse to buy anything that isn't European, Korean, Taiwanese, or Japanese for home appliances and electronics.
Brands like Miele, Bosch, Samsung, LG, Sony, Brother, Nikon, Philips, Smeg, Liebherr... They're usually up to 2-3x as expensive as the equivalent on AliExpress, but the quality and service is unbeatable.
That being said, personally dislike American brands but only because they usually advertise and use USC units, which make them hard to wrangle in a purely SI country.
Since targeted ads got so cheap, tiny little businesses could buy super targeted social media ads for less money than they could selling their products wholesale at a store. Net result is that they can flood social media with targeted ads for some geoarbitraged thing that tiny startup found on AliExpress decided to sell DTC, and end run around consumer wholesaling and all rigamarole involved there.
The barrier to entry for that is super low. All you really need to be good at then is matchmaking some real niche product you found on Alibaba to a real niche consumer need.
Net result: lower prices, greater net profit for the company, tons of new entries to the game of social media enabled DTC.