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When Clubhouse first launched last April, founders flocked to the app as they were looking for more ways to meet fellow entrepreneurs while the world was still socially distancing. Months later, some of their initial excitement for their app has faded as they are trying to limit their usage to tuning into talks they feel like will actually, tangibly, help them in their business.
After growing its private labels alongside selling eco-friendly home essentials by brands like Seventh Generation and Method, Grove Collaborative is venturing into retail. Later this month, the DTC marketplace will launch its cleaning products at nationwide Target locations and on Target's website.
Flower delivery became a big winner during the pandemic. The category, which taps into the socially-distanced gifting trend, saw major growth, especially during celebrations and holidays. Now, DTC players like UrbanStems are looking for ways to retain their new cohort of customers with self-gifting and add-ons.
Direct-to-consumer startup Summersalt got its start in swimwear, but over the past few years the brand has been transforming itself into a full-fledged apparel company. In addition to swimsuits, Summersalt now sells loungewear, sleepwear, activewear and cashmere sweaters.
This year, DTC plants startup Bloomscape introduced a new line of outdoor and patio plants, its first venture outside. The company said the new category is way to retain customers, and attract new ones, as more millennials invest in their homes.
DTC furniture brand Article's ticket to growth is focused on the outdoors. Its new collection of outdoor furniture is prompting a wave of growth, the company told Modern Retail. Article already saw big growth in 2020, with sales up 70% year-over-year.
Target being a go-to for DTC brands' physical retail strategy is nothing new. Over the years, the big box retailer has become known for attracting digitally-native brands like Quip, Harry's and Schmidt's to its shelves. Now, the company is tapping young health-focused brands to offer clean alternatives for national over-the-counter names.
More than a year after the FTC quashed a proposed acquisition of Harry’s by CPG conglomerate Edgwell, Harry’s has started to chart out its new plan for building a next-generation CPG company. Now, Harry’s is looking to become more of a CPG conglomerate itself.
The e-commerce boom has led to an influx of startups trying to build businesses worth hundreds of millions of dollars by selling software to DTC brands. And it’s a surge that shows no signs of slowing down.
Covid has led to an explosion in interest in livestreaming. There’s been an uptick in established retailers like Macy’s or Nordstrom hosting livestream shopping events this year, while livestreaming startups like NTWRK, Popshop Live and Whatnot have recently announced significant rounds of venture capital. But the go-to partner livestreaming partners for many DTC brands is still QVC.
After a year in which social gatherings have essentially been limited to Zoom or Clubhouse, and people had to postpone major events like weddings and vacations, there’s a light at the end of the tunnel. With President Joe Biden announcing last week that all states should open up coronavirus vaccine eligibility to all adults by May 1, people now have a closer idea of when they’ll be able to resume activities they’ve been putting off since the start of the coronavirus pandemic. Here's how startups are preparing for people to spend their money come summer.
Barely a week goes by anymore without a brand that started selling “direct-to-consumer” announcing it’s starting to sell wholesale through a big-box retailer. A couple of years ago, wholesale partnerships at places like Target were reserved for the most high-profile direct-to-consumer brands. Now, more “DTC brands'' are now also testing the wholesale waters one to three years after launching their first products.
Four founders of direct-to-consumer startups spoke with Modern Retail about how they've had to rethink how they run their businesses over the past year. Now, all are trying to figure out what consumers will want to spend their money on once the pandemic subsides -- and what they'll be willing to venture to a store for, versus what they will still want to buy online. Plus, a new direct-to-consumer startup launches in Walmart, and an e-commerce CEO is getting into venture investing.
As the hospitality industry continues to adapt to the virtual world, service workers like chefs and bartenders are seeking new opportunities to supplement their lost income. In recent months multiple platforms, like Demi and The Industry Collective, have launched to directly match these experts to everything from brand sponsorships to paying consumers.
One of the most frequently touted advantages of going direct-to-consumer is the ability to collect more data on customers. And one of the most straightforward ways companies can do that is by getting customers to fill out a quiz. But as executives at brands like ThirdLove and Clare told Modern Retail, there's more to creating a successful quiz than just following a Buzzfeed-like template.
In his investor letter, Jeff Bezos confirmed that Amazon Prime now has “more than 200 million subscribers” worldwide. But beyond that top-line figure, a few other numbers in the Bezos letter illustrate exactly where that growth is coming from -- and largely confirm existing speculation about the ascendancy of Amazon’s third-party sellers, its accelerating logistics footprint and the growth of its Alexa system.
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