Startups

To acquire customers more cheaply, DTC brands are partnering up

As they grow up, direct-to-consumer startups are starting to partner more exclusive product drops, giveaways and events, all in the name of cheaper customer acquisition. While many of these partnerships are only responsible for incremental revenue, they are one of a number of ways that today's DTC brands are trying to find cheaper and more organic ways to get more people to hear about their brands.

Latest Stories

  • AUG 29, 2019

    Explainer: From CAC to AOV, what DTC’s hottest buzzwords really mean

    As direct-to-consumer brands have come to dominate the new retail landscape, they've also brought with them a new set of vocabulary. Many of these terms -- CAC, LTV, AOV -- are important for any retail company, regardless of whether or not they sell directly through their website or not. But they've become increasingly important to DTC companies, particularly the ones who have taken on venture capital funding.

  • AUG 28, 2019

    As DTC brands mature, private equity takes on an increasingly important role

    As the direct-to-consumer space matures, private equity brands are starting to play an increasingly heavy hand in picking category winners and losers. One of the most active private equity investors in the DTC space is L Catterton, which has taken stakes in Mizzen + Main, Peloton and Third Love. Most recently, it announced on Monday that it had invested $100 million in bedding brand Boll & Branch. Some of these DTC brands are taking on private equity because they believe it allows them to grow at a more manageable pace than if they were to take on venture capital money.

  • AUG 23, 2019

    ‘Systemic issue’: The customer acquisition challenges DTC brands face go beyond cost

    It's become one of the most talked-about subjects in the DTC world: one of the biggest challenges brands face today is the rising cost of customer acquisition, particularly on digital channels like Facebook and Google. But, the customer acquisition challenges DTC brands face goes beyond cost, and as such, it will take more than just an advertising channel offering low CPMs to win them over.

  • AUG 22, 2019

    ‘Tons of fear’: How DTC companies are dealing with Trump’s tariffs

    As Trump's increased China tariffs continue to take a toll on the US economy, many smaller DTC businesses are faced with some tough choices. But for most, it's not simply as easy as moving manufacturing out of the country.

  • AUG 20, 2019

    SmileDirectClub’s IPO filing highlights promises, pitfalls for DTC health care industry

    SmileDirectClub will soon be one of the few companies that started as an online-only, direct-to-consumer startup to make it to the public markets, setting the bar for what it will take for other DTC companies, particularly in the health care industry, to go public. On Friday SmileDirectClub -- which sells teeth alignment kits direct-to-consumer -- made its confidential IPO filing public, revealing that the company generated $423 million in revenue in 2018, with a net loss of $74.8 million.

  • AUG 15, 2019

    An online wine company is using customer data to develop products and gain traction with retailers

    After gathering customer insight from subscribers around the types of wines they prefer over Vinebox’s past three-and-a-half years, and seeing users buying more cases of the individual pours outside of the three-month delivery cycle, Vinebox founder Matt Dukes launched Usual Wines, a private-label brand of wines made in-house. Usual wines, which launched eight months ago, are sold in packs of six and can be bought online and at Usual’s first branded store and wine bar in San Francisco.

  • AUG 12, 2019

    Why Winc is turning to equity crowdfunding to raise capital

    Wine company Winc just launched its equity crowdfunding campaign on the Seedinvest platform, in the hopes that it can raise a Series D fund with the help of its fanbase. Winc has raised nearly $50 million from traditional investors. Now, it's turning to everyday people with some extra cash to spare asking them to invest in the growing company too. It's a rare move for the alcohol space, but follows in the footsteps of a few interesting brands.

  • AUG 09, 2019

    Beverage brands are leaning on CBD and cannabis to drive buzz

    This past week, Arizona Iced Tea announced plans to launch a partnership with a cannabis company. It follows a few other bigger brands dipping their toes in the cannabis space. While ingredients like THC and CBD are trending culturally, the companies trying to launch these products have an unclear regulatory road ahead.

  • AUG 09, 2019

    Faced with rising online costs, DTC brands are now spending more money on traditional marketing channels

    Brands transitioning their marketing strategies to account for broad awareness-raising channels – which yield little to no insight into attribution or customer data – have to navigate an awkward growing-up phase that requires a reallocation of resources, navigating partnerships, new methods for tracking results and back-end preparation to meet a new level of customer response.

  • AUG 07, 2019

    Gin Lane is trying its hand at launching its own brand

    On Wednesday, Gin Lane announced that it is shutting down its agency work, and rebranding to Pattern. Pattern will launch its own brands and operate them under one holding company, joining the long line of agencies that have tried to launch their own products.

  • AUG 06, 2019

    How insurance startup Hippo built a company worth $1 billion

    Home insurance startup Hippo just reached unicorn status. Since the very beginning, the company worked with the branding agency Work & Co to help craft and evolve its strategy and products. While many upstart DTC brands sing the praises of bringing all branding in-house, this provides a helpful example of an agency partnership that helped a company be worth more than $1 billion.

  • AUG 05, 2019

    Mattress brand Eight Sleep used a new product launch to reduce its dependence on Facebook

    When five-year-old startup Eight Sleep released a new product in February, a $1,995 smart mattress that offers dynamic temperature adjustment, the company used the launch to kick off a "pretty intense testing phase" of new marketing channels, according to senior vice president of growth Ori Klein.

  • DEC 11, 2019
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    Video: What creative 'storytelling' means in the age of AR and visual search

    Great storytelling adds value to a brand. In a new video, hear from Triad's Garrett Albanese about why marketers should be investing in visual search, augmented reality and creative site experiences.

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