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Direct-to-consumer brands like to trumpet the fact that they have more access to customer data than traditional brands. Now, as they grow and add more products, they're also looking to launch loyalty programs that give them better insight into how their customers behave compared to traditional loyalty programs. Mizzen+Main, which sells mens dress shirts and pants, is launching a new loyalty program on Tuesday that it hopes will give the company more insight into when exactly its customers are looking to shop.
When handbag brand Dagne Dover launched in 2012, its products were only available for sale through its own website. But today, shoppers can find Dagne Dover bags for sale on Nordstrom's website, in Stitch Fix boxes, in select Apple stores, as well as some Equinox gyms. While Dagne Dover started as a direct-to-consumer brand, wholesale now accounts for just under 20% of its revenue. Founder and CEO Melissa Mash wants to keep it that way.
There are so many DTC cookware brands it's hard to keep them straight. Now, these players are growing and trying to stay alive by expanding product lines and inking retail partnerships. The latest example is Material, which is now partnering with the furniture brand West Elm.
The RealReal's latest earnings results showed the company still in the red, but growing revenue. Wall Street considered it an overall success. Most companies in the resale space are trying to grow quickly, and have yet to turn a profit. Despite that, investors continue to be interested in the space.
Direct-to-consumer brands were born out of the idea that the Procter & Gambles of the world weren't doing a good job anymore of addressing consumer needs. Now some of them want to become the next Procter & Gamble.
Direct-to-consumer brands are starting to invest more in traditional advertising channels, like billboards, television and direct mail as consumers' inboxes or Instagram feeds are getting clogged with ads from competitors. Brands who spoke with Modern Retail say that direct mail is proving to be a small, but useful part of their marketing mix to reach a select group of high-intent customers.
Over the past year, weighted blanket brand Gravity Products has started to partner more with brands on product collaborations in order to lessen its reliance on selling directly to consumers. Today, Gravity announced that it's partnering with DTC mattress brand Purple on a product collaboration. CEO Mike Grillo said that partnerships now make up nearly 18% of Gravity's revenue, up from 2% last year.
Some direct-to-consumer companies are slowly building out corporate gifting programs, as they look for more ways beyond paid advertising to reach large groups of potential new customers. Bombas piloted a corporate gifting program for the first time last year. Today, it has a team of three that manages corporate sales, two members of which were just hired in June, according to chief marketing officer Kate Huyett.
Brooklinen announced a new marketplace called Spaces. It partnered with other DTC brands to sell adjacent but not competitive goods on the bedding company's website. It's indicative of a growing business trend where brands are banding together to try and maintain growth.
As buy now, pay later financing models start to gain more traction among younger customers, the businesses powering these transactions are also looking for more ways to keep customers shopping within their network of retailers. Affirm, founded in 2013 is one such business, and last week launched a redesigned mobile app that's designed to encourage customers to turn to Affirm to finance more of their purchases.
Brands, especially venture-backed ones, live and die by a few metrics. Customer lifetime value and retention rates are especially critical in proving to investors that their company is worthy of being valued at five times or ten times revenue.
New and existing sites are increasingly seeing an opportunity in helping both shoppers and industry members make sense of the growing DTC landscape. The founders of these sites say that because it's easier now than ever before to start a new brand, and many of these brands gain traction through a mix of paid Facebook and Instagram ads, influencer partnerships, and affiliate deals, it's hard for even someone who works in the consumer industry to understand which new mattress or razor is best.
Email addresses have become the currency of choice for direct-to-consumer brands. As a result, many DTC brands offer customers a discount off their first order, if they sign up for the company's email list
Chatbots were all the rage a few years ago, but consumers never took to them. Now, DTC brands are using a mixture of AI and human-based chat technology to better handling customer service.
Food52 just sold a majority stake to The Chernin Group. According to the company, what propelled the deal was the commerce strategy it put in place. Now, with the cash infusion, the home and kitchen site plans to invest even more into both online and physical retail.
A growing number of health and beauty brands are turning to cloud-based systems that can handle customer, financial and inventory data across all processes, from production to payment.
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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