The right formula for a DTC brand's success is often combining the right product with the right PR and marketing. And as more attention has been paid to these upstart brands' channel strategy, the value of PR has come into sharper focus.
Stitch Fix CEO and founder Katrina Lake told investors that the company spent $16 million in brand marketing last quarter, and is looking to spend even more heavily on it during the second half of the year as the company looks to diversify from its “normal bread and butter performance marketing.”
Retailers’ interest in CBD products is tilting the burgeoning industry’s favor towards traditional players, and away from DTC startups in the space. The digital marketing engines like Facebook, Instagram and Google that help spur the momentum of direct-to-consumer brands still block companies from advertising non-intoxicating cannabidiol products, as they’re derived from cannabis. These platforms have all blocked paid ads promoting CBD products, under their policies against advertising “drug and drug-related products.”
Food52’s strategy is to use the data on what items already sell well through its website and what white spaces exist to determine what products it will launch next, and then use customer feedback to add personal touches.
Having made a collective mark on the retail’s makeup, direct-to-consumer brands are pushing to command more market share in their respective categories while dealing with an existential crisis. Direct-to-consumer retail, launched on the basis of selling directly to customers through owned e-commerce and physical retail, is exploring outside of its own channels to drive growth.
Henry McNamara, a partner at Great Oaks Venture Capital, shared his perspective on the future of the DTC category, around saturation, expected scale and veering off of the internet’s crowded toll roads: Facebook and Instagram.
Facebook, Instagram and Google are still the most powerful customer acquisition channels for online brands, but maturing means building a more diversified marketing mix.
Bonobos has been quietly piloting a "try before you buy" service in three of its Boston area guideshops, and is looking at expanding the service to the West Coast.
Brandless wants to win over customers on its own, drawing them into its marketplace.
Bruce Henderson, who joined Smile Direct Club in February as its first chief creative officer, said the biggest advantages of working in-house for a brand is how quickly his team can get things done.
One year after acquiring two technology startups, Nike is using them to increase memberships and improve its personalization efforts.
When Edgewell completes its acquisition of DTC razor brand Harry's, it will gain insight into how to better connect with customers both online and through wholesale environments.
Under Armour's direct-to-consumer business is struggling to grow as the company tries to lessen its reliance on promotions to drive sales growth.
Some bootstrapped direct-to-consumer brands are resisting the pull of venture capital funding.
SmileDirectClub is doubling its physical retail footprint of the next year as part of a new partnership with CVS.
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