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Over the past two months, digitally native startups have been some of the biggest beneficiaries of store closures. Part of this growth was due to the fact that shoppers had fewer options. Now, shoppers have more options as stores open back up in more states. The coming months will prove just how much of the growth direct-to-consumer brands experienced was a flash in the pan.
Brooklinen's marketing team explains why customer feedback is valuable during a crisis. Checking with the audience helped them modifying tone and content, target offline customers and make them comfortable with e-commerce, and leverage existing social media resources to further build customer loyalty.
Running different channels requires skills and discipline. Brand consistency is key, especially when many channels are involved internationally and across different touch points. Ask “what are the reasons to come to the site and why is the experience special?” said Ugly Drinks CEO Hugh Thomas.
Over the past year, Facebook hasn't been shy about its e-commerce ambitions. So, it didn't come entirely as a surprise on Tuesday when Facebook announced that it would be launching customizable online storefronts called Facebook Shops, as part of its quest to get customers to think of Facebook and Instagram as their go-to places to discover new products. Shopify is largely considered to be the go-to e-commerce provider from direct-to-consumer brands, and as such, stands to benefits the most right now from Facebook's aggressive e-commerce push.
CPGs are currently in a mad dash to solidify their DTC strategies. Clorox has been building out its team for the last year and half. It's both launched new brands and focused on building out more direct sales strategies with older ones. The company's vp and general manager of DTC spoke with Modern Retail about the company's strategy, and how it's recently been accelerated.
CBD beverage brand Recess just launched a redesigned website, alongside some new revenue streams. The company now has subscriptions, a line of merchandise and a new ordering system for wholesale vendors. Its national expansion plans are starting to come into sharper focus.
People are sheltering in place and they're also adopting pets. As a result, pet food startups have seen a huge boom over the last few months. This tracks with other bigger players shutting their doors and seeing shipping delays. While things begin to normalize the question remains whether these new entrants will be able to keep momentum.
Now that companies have roughly two months of working remotely under their belts, all CEOs are grappling with if, and when, they should call employees back to the office. Many CEOs are trying to figure out exactly what that will look like. For some, it may mean getting a smaller space. For others, scrapping offices altogether.
California's soft store re-openings are being spearheaded by local businesses and smaller startups. The DTC brand Vuori, for example, is starting with curbside pickup but is already strategizing what re-opened stores will look like.
The athletic apparel brand reported dismal earnings this past quarter. While much of this had to do with the coronavirus outbreak, its faltering DTC strategy isn't helping matters either.
2020 was the year East Fork ceramics planned to become profitable. Now, that's likely no longer on the table, but the company is using a new model to better handle its balance sheet: pre-sales. Now, new product lines will all be for sale before they're manufactured, as a way to get capital in as early as possible.
Direct-to-consumer startups have been thinking for weeks about how and when they want to re-open their stores. But as the time has come to re-open stores in some states, no one has any better idea of what the right path forward is than they did six weeks ago.
"Don’t grow fixed costs immediately and stay within the realm of keeping marketing costs flexible,” said CEO Keith Nowak, which comes in handy during inevitable global economic crisis.
For many direct-to-consumer founders, it's been six weeks of extreme highs and lows -- some companies have recorded simultaneously some of their best and worst sales days within those same time periods. But even companies that have reported record sales haven't been immune from having to lay employees off. As a result, many DTC founders are finding themselves having to navigate situations that they never have been before, and are having to learn new ways of leading.
Longevity in the coming year will require “re-imagining at home consumption,” said COO Brian Smith, with restaurants and hospitality down at the moment. Here are some takeaways about how the wine brand has strategized in this current economic climate.
As bot-driven fraud eats into budgets, marketers are placing a heightened focus on identifying the characteristics that account for authentic audience humanity.
Many retailers and companies rely on people testing out their products. But with social distancing in place and many stores closed, that gets much more difficult. For some, it may mean sampling is completely off the table. For others, it means introducing new operations and safeguards that were never thought of before.
Read MoreExclusively for Modern Retail+ members: Hear from Connie Matisse, Co-founder and CMO and Alex Matisse, Co-founder and CEO at East Fork Ceramics, on how to maintain brand loyalty during a time of tumult.
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