When handbag brand Dagne Dover launched in 2012, its products were only available for sale through its own website. But today, shoppers can find Dagne Dover bags for sale on Nordstrom's website, in Stitch Fix boxes, in select Apple stores, as well as some Equinox gyms. While Dagne Dover started as a direct-to-consumer brand, wholesale now accounts for just under 20% of its revenue. Founder and CEO Melissa Mash wants to keep it that way.
Shopify is largely considered the go-to solution for DTC e-commerce architecture. But some say the enterprise solutions are lacking. And other digitally native brands trying to scale their businesses have had to get creative to use the platform to their advantage.
Direct-to-consumer brands like to trumpet the fact that they have more access to customer data than traditional brands. Now, as they grow and add more products, they're also looking to launch loyalty programs that give them better insight into how their customers behave compared to traditional loyalty programs. Mizzen+Main, which sells mens dress shirts and pants, is launching a new loyalty program on Tuesday that it hopes will give the company more insight into when exactly its customers are looking to shop.
As shoppers' email inboxes and Instagram stories have become cluttered with ads from direct-to-consumer brands urging them to get 20% off their new rug or sleepwear collection, newer brands are in search of new places to talk to customers where they aren't yet sick of hearing from brands. One method of communication that's starting to become more popular: text messaging.
The DTC weighted blanket brand Bearaby is collaborating with West Elm. The partnership illustrates the millennial-love furniture maker's strategy with smaller brands that complement its selection. More, similar collaborations are likely on the way.
Brooklinen announced a new marketplace called Spaces. It partnered with other DTC brands to sell adjacent but not competitive goods on the bedding company's website. It's indicative of a growing business trend where brands are banding together to try and maintain growth.
New and existing sites are increasingly seeing an opportunity in helping both shoppers and industry members make sense of the growing DTC landscape. The founders of these sites say that because it's easier now than ever before to start a new brand, and many of these brands gain traction through a mix of paid Facebook and Instagram ads, influencer partnerships, and affiliate deals, it's hard for even someone who works in the consumer industry to understand which new mattress or razor is best.
Email addresses have become the currency of choice for direct-to-consumer brands. As a result, many DTC brands offer customers a discount off their first order, if they sign up for the company's email list
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.
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.
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?
To engage users and improve customer profiling, CPG brands are closely studying consumers as they begin to research products on the company's website.
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