"Is the age of succeeding through brand-owned malls over?

There was a time when the D2C (Direct-to-Consumer) model drew huge attention for enabling brands to connect with consumers without relying on intermediary distributors. Running a brand-owned mall went beyond being just another sales channel; it offered clear advantages such as lower fees compared to platforms, consistent message management, and direct accumulation and utilization of customer data.

In fact, Nike generates 42% of its total revenue from its own D2C channels globally, and in Korea, brands like APR’s Nerdy have proven the potential of brand malls by achieving more than 50% of their sales through their own sites.

Yet, challenges remain clear. A lack of technological capabilities, the burden of content creation, and the high marketing costs required to secure traffic have left many brands struggling to break free from their reliance on large platforms.

So, is D2C truly a failed strategy?

Absolutely not. On the contrary, D2C is evolving around AI and data technology, presenting new possibilities. It is no longer just about building a brand-owned mall, but about creating a sophisticated and practical D2C strategy that reads and responds to customer data in real time. The era of true direct commerce has now arrived."

🎗️How Is D2C Evolving at Home and Abroad?

Once a symbol of “brand independence,” D2C is now evolving beyond simply operating a sales channel into a strategy for designing technology-driven customer experiences. Brands are shifting from merely driving customer traffic to building structures that design experiences and sustain long-term relationships.

The global market shows the same trend. According to a report by the global market research and consulting firm IMARC Group, the global D2C market was worth about 58.3 billion dollars in 2024 and is projected to grow to 2.75 trillion dollars by 2033. In Korea as well, brands are accelerating their move to secure independent distribution channels and transition toward revenue models centered on their own online stores.

At the center of this transformation stand AI and data technologies. Today’s customers are not simply looking to purchase products—they are seeking personalized experiences and direct connections with brands. The key enabler of this evolution is AI commerce technology.

🎗️True D2C is about reading and responding to customer data 

A genuine D2C strategy goes beyond simply owning a brand mall. Brands must precisely interpret customer behavior and respond to it in real time.

If brands can recognize this information in real time and automatically suggest the most relevant content and products, they can achieve a new level of conversion efficiency.

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🎗️AI alone is not enough—it needs the right infrastructure

AI alone is not enough—it needs the right infrastructure.

No matter how advanced the AI technology may be, if the underlying commerce platform infrastructure is lacking, or if it is not effectively integrated across overall e-commerce operations, it is difficult to translate it into real business results.

In fact, many brands pause before adopting AI commerce when faced with questions like these.

A simple solution alone cannot overcome structural limitations. For AI technology to deliver results, it must be supported by comprehensive elements such as data management, operational automation, UI/UX design, and the flexibility of recommendation systems.

🎗️XGEN delivers new value across the entire spectrum—from AI development to data management and operations

XGEN is an all-in-one AI platform that encompasses Retrieval-Augmented Generation (RAG), AI workflow design, large language model (LLM) integration and operations, as well as performance monitoring and deployment. It is designed to address the critical challenges enterprises face when adopting AI, such as rapid technological change, shortage of skilled talent, limited initial performance, and security concerns in regulated industries.

D2C is not a failed strategy. On the contrary, it continues to evolve as a core growth driver through AI and data technologies. True competitiveness comes not from merely operating a brand-owned mall, but from reading customer data in real time, responding instantly, and designing differentiated experiences.

XGEN provides the AI-based technologies and operational capabilities required for this transformation, enabling brands to realize new possibilities in direct commerce. Now is the optimal moment to begin the journey toward “true direct commerce”—and with XGEN, that journey can be completed with greater precision and impact.

Beyond D2C strategies, XGEN helps companies overcome the technological and operational challenges of AI adoption and enables tangible business innovation through customized AI. Having already completed successful PoCs across various industries, XGEN is set to expand its applications into manufacturing, retail, finance, public sector, and beyond.

Experience the acceleration of AI innovation with XGEN today!

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¹⁾ Nike set for rare sales drop with focus on US demand, direct-to-consumer pivot, Reuters

²⁾ Nerdy’ Achieves 50% of Sales Through Its Own Online Store... D2C Strategy Proves Successful, Apparel New

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