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.
Many DTC brands relying on performance marketing use Facebook for customer acquisition. But the DTC company Candid has found that despite it's robust offerings, the platform simply doesn't align with its longterm strategy.
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.
As Facebook and Google ads, the bread-and-butter of many direct-to-consumer brands' customer acquisition efforts, become more expensive, there's also been a rise in companies eager to give money to cash-strapped DTC companies -- for a fee. One of the most prominent of these companies is Clearbanc.
Brandless announced it was pivoting to CBD earlier this summer. Now we get a glimpse at what this looks like, while other companies make similar moves.
There's a growing group of business evangelists online who love to wax philosophic about DTC brands. But it's not only a pocket of Twitter, but a thriving social network of entrepreneurs, VCs and consultants. But does it run the risk of becoming too much of a clique?
As J. Crew's denim-focused brand Madewell prepares to go public, it will be depending upon its loyalty program to fuel customer retention and personalization efforts, which the company thinks is key to driving more direct-to-consumer sales.
As DTC brands grow, they face the issue of copycats encroaching on their space. This is increasingly becoming an issue founders are being forced to reckon with. The latest example is Ro, which noticed that competitor Hims had a UX almost identical to its own.
Returns are one of the most ubiquitous part of the online shopping process. They are also extremely expensive -- as well as difficult to accurately quantify. For DTCs, returns are one of the large-yet-invisible problems continually hampering the bottom line.
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.
When Dan Levitan, along with former Starbucks CEO Howard Schultz, launched consumer-focused venture capital fund Maveron in 1998, the pair decided on eBay as their first investment. Maveron's thesis was that technology was going to play a bigger role consumers' lives and how they buy products. At the time, that meant getting in early on marketplace startups, where customers could for the first time buy from a wide selection of products online. Today, it means that brands are able to go from "obscurity to ubiquity" in an unprecedented amount of time, thanks in large parts to investments in digital media like Facebook and Google.
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.
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.
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.
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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