‘It can feel pretty thirsty’: How DTC startups build an email marketing strategy around a limited product selection

DTC startups didn't invent the practice of bombarding customers multiple times a week with emails. But DTC brands do face a unique challenge compared to other retailers: how to get customers to keep opening their emails when they only have a few products to promote.

Top Stories Jan 24

Why DTC marketing is no longer about accessible price points

In its early days, being direct-to-consumer meant lower prices. Because there was no middleman, so the theory went, companies were offering better quality goods at more competitive prices. But as the industry matures, there has been a shift away from branding DTC products as the most affordable alternative to traditional retail shopping for personal products.  The strategy to offer “no markups” was integral for the success of Warby Parker and Everlane, among others when they launched a decade ago. However, that’s no longer the case, as evident from a new crop of luxury DTC brands that are looking to duplicate the model’s biggest success stories, in diamonds, luxury fashion and more.

A 'unicorn hangover': Casper's impending IPO is impacting the wider DTC industry

All eyes are on Casper and its plans to go public. The company has long been considered a leader in the DTC space, but now that things don't look great for its public market debut, the question remains how its performance will impact other digitally native brands.

Iris Nova founder Zak Normandin: Being on Amazon is a defense strategy

"The cost to acquire customers online is unsustainable for a lot of companies," Iris Nova founder Zak Normandin said on the Modern Retail Podcast. "So we've learned to actually do retail in our own way now and actually use retail to our advantage."

Other news to know

  • Grubhub is launching new tech to help restaurants make it easier for customers to pick up orders. Called Ultimate, it’s currently being tested at restaurants in New York City and Chicago, as well as at restaurants on Ohio State University’s campuses.
  • Gap chief marketing officer Alegra O’Hare has left after less than a year on the job, Adweek reported. Gap did not give a reason for her departure.
  • After denying yesterday that it was filing for Chapter 7 bankruptcy, New York City grocer Fairway filed for Chapter 11 bankruptcy yesterday, and is looking to sell five stores to rival Village Super Market Inc.
$1 million
Cash Fairway had on hand when it filed for bankruptcy
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'They were the star': Gap shuttered plans for an Old Navy spin off after growth stalled

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As Payless tries to re-open in the US, it faces an uphill battle

Payless ShoeSource has come out of its latest bankruptcy proceedings with big plans to relaunch in the U.S. It's provided scant details about what that would look like. But with all of its U.S. locations closed, a large brand and business overhaul will be necessary to keep the retailer alive.

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Modern Retail Summit
Apr 20–Apr 22, 2020

At the Modern Retail Summit, we’ll bring together hundreds of senior retail marketers to discuss the challenges they’re facing and the solutions they’re seeking in the era of smarter retail.

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