Can Procter & Gamble's Shift to DTC and Digital Win New Consumers?

As consumer behavior increasingly shifts online, The Procter & Gamble Company PG is recalibrating its go-to-market strategy to deepen digital engagement and selectively expand direct-to-consumer (DTC) capabilities. Rather than positioning DTC as a replacement for traditional retail, the company is using digital channels to strengthen brand relationships, capture first-party data and influence purchase decisions earlier in the consumer journey. This evolution reflects a broader ambition: meeting consumers where discovery happens — online, personalized and increasingly mobile — while reinforcing PG’s brand leadership across categories.

PG’s digital strategy centers on enhancing omnichannel execution rather than building large standalone DTC businesses. The company is investing in brand websites, subscription models, social commerce and AI-driven personalization to improve targeting and conversion. Platforms tied to brands like Gillette, Oral-B and SK-II allow PG to test innovation faster, tailor messaging and gather real-time consumer insights that can be scaled through retail partners. At the same time, digital media spending and advanced analytics are helping PG sharpen its return on marketing investment and connect more effectively with younger, digitally savvy consumers.

However, challenges remain. DTC economics can be margin-dilutive at scale, and PG must carefully balance digital expansion without straining retailer relationships, which remain central to its volume engine. Success will hinge on disciplined execution, using DTC and digital tools as strategic complements rather than growth shortcuts. If PG can continue leveraging digital to accelerate innovation, personalize engagement and influence omnichannel demand, its shift could prove less about channel disruption and more about strengthening relevance with the next generation of consumers.

How CHD & CL Use Digital and DTC to Attract Consumers

Both Church & Dwight CHD and Colgate-Palmolive CL are strategically using digital and DTC initiatives to drive brand engagement, reach younger consumers and support targeted growth without pursuing large-scale direct-to-consumer expansion.

Church & Dwight approaches DTC and digital as targeted growth enablers rather than standalone scale plays. The company leverages digital marketing, social media and e-commerce partnerships to build awareness and trial for emerging brands like THERABREATH, HERO and TOUCHLAND, which resonate strongly with younger, digitally native consumers. While CHD relies primarily on major retail and online marketplaces for volume, its digital-first brand building, supported by data-driven marketing and influencer-led engagement, helps accelerate household penetration and innovation adoption without attracting the cost and complexity of large DTC platforms.

Colgate is using digital and selective DTC initiatives to strengthen consumer engagement and premium positioning, particularly in oral care and skin health. Through brand sites, subscription models and connected devices such as Oral-B smart toothbrushes, CL gathers first-party data and delivers personalized experiences that deepen loyalty. The company is also investing in digital analytics and AI to improve targeting and speed innovation globally. Rather than chasing DTC scale, Colgate’s strategy focuses on using digital tools to reinforce omnichannel demand, expand premium adoption and stay relevant with younger consumers.

PG’s Price Performance, Valuation & Estimates

Procter & Gamble’s shares have lost around 11% in the past six months compared with the industry’s 12.4% dip.

From a valuation standpoint, PG trades at a forward price-to-earnings ratio of 19.84X compared with the industry’s average of 18.05X.

The Zacks Consensus Estimate for PG’s fiscal 2026 and 2027 EPS indicates year-over-year growth of 3.1% and 2.9%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.

Procter & Gamble currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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