Plus

‘More than a moment’: SPACs give DTC startups a new potential exit strategy

There's a new most-talked about acronym in the DTC world these days: SPAC, which stands for special purpose acquisition company. SPACs give startups an alternative way to go public, without going through the traditional IPO. In a SPAC, a group of individuals raise money in order to acquire a company with the purpose of taking it public. At least one direct-to-consumer startup, Hims has already opted to go the SPAC route. But investors caution that SPACs won't entirely replace the traditional IPO process.

Latest Stories

  • OCT 12, 2020

    In a crowded holiday advertising market, DTC brands are rethinking their digital strategies

    In conversations with a handful of direct-to-consumer startup executives about their holiday marketing plans, the biggest concern cited was figuring out when was the right time to run holiday ads. Both to ensure that customers order far enough in advance so that they get their products by Christmas, and to ensure that they are spending their holiday marketing dollars most efficiently. The executives Modern Retail spoke with said that for the most part, they weren't that concerned about rising digital advertising costs, either because they've been able to further diversify their ad spend away from digital this year, or customer acquisition costs are still lower than they are last year.

  • OCT 02, 2020

    ‘Flying blind’: How DTC CEOs are preparing for the holidays

    Despite experiencing record e-commerce sales during the coronavirus, DTC CEOs are trying to prepare for how to handle some worst-case scenarios over the holidays. Specifically, fears over shipping delays and how to compete with deep discounts are keeping them up at night. As they've had to do throughout the coronavirus outbreak, they're trying to figure out what unexpected scenarios to plan for.

  • OCT 01, 2020

    Pitch deck: How Amazon is coaching agencies to craft sellers’ Prime Day strategies

    Prime Day is a big sales day for Amazon. While the company doesn't disclose exact revenue figures, the e-commerce giant said that Prime Day sales last year were higher than the last Black Friday and Cyber Monday combined. But Amazon's goal on Prime Day isn't just to get people to buy more physical product. It's also to encourage more people to buy Amazon Prime memberships, and to get the companies that sell on Amazon to spend more on advertising. And that's evidenced by the way that the company encourages Amazon agencies to prepare for Prime Day, by getting their clients to spend more on advertising.

  • SEP 25, 2020

    Fearing a holiday email onslaught, DTC startups turn to text messaging to promote sales

    There's no shortage of "last chance" sales hitting email inboxes these days, as desperate retailers like Gap and Macy's are trying to squeeze some much-needed revenue out of shoppers. But that also makes it harder for younger startups to grab customers' attention, when every retail company in the world is trying to email them. So, some startups are turning to text message instead to promote sales or key events. Thinx, used text messaging to promote its 30% off sale in August, while Lensabl is encouraging customers to get their first-time discount via text message instead of email.

  • SEP 18, 2020

    ‘It is all DTC now’: VCs are eager to strike deals again

    In March, the fundraising environment for direct-to-consumer startups was "downright frozen," as Michael Duda, managing partner at hybrid accelerator agency and venture capital fund Bullish, put it. Now, March seems like a lifetime ago. Over the past six months, many direct-to-consumer startups in categories ranging from home improvement, health and wellness, and food have struck it big, reporting that their online sales have doubled or tripled while customer acquisition costs have decreased. Consumer investors are starting to close deals again, while investors that had previously soured on DTC startups because of high customer acquisition costs are starting to change their tune.

  • SEP 11, 2020

    DTC brands are rethinking their ‘never-go-on-sale’ rule

    While some direct-to-consumer startups have reported that their online sales have tripled or doubled since the start of the pandemic, not every retail company is benefitting from the e-commerce gold rush. In March and April, demand for certain products like travel accessories and wedding attire all but evaporated as those activities became impossible to do under stay-at-home orders. So companies that sell these types of products are doing something they swore they never would before: offer a sale.

  • SEP 04, 2020

    After record sales, DTC startups are focusing on retention

    A number of direct-to-consumer startups have reported huge revenue growth during over the past several months, in some cases acquiring double or triple the amount of new customers that they did during the same period last year. Now, their focus is on keeping those new customers. Even though retention is important for DTC startups year-round, it is especially so during the pandemic, as more customers are buying certain types of products online for the first time.

  • AUG 28, 2020

    What a Walmart-Microsoft bid for TikTok could mean for e-commerce

    All big-box retailers are now trying to become tech companies. That's the takeaway from the news that Walmart is teaming up with Microsoft to submit a bid to acquire TikTok. Acquiring TikTok could help Walmart grow its advertising business astronomically -- and that could be a boon for e-commerce startups looking for somewhere else to spend their money besides the Facebook-Google duopoly.

  • AUG 25, 2020

    The new DTC playbook: Everything you need to know

    The business landscape was upended overnight when a virus wreaked havoc on the world. Now, digitally native brands are trying to figure out how to operate in this new landscape. In this report, Modern Retail details all the shifts that occurred over the last year.

  • AUG 21, 2020

    By being too customer-obsessed, DTC startups are failing their retail employees

    Despite their affinity for shirking traditional retail practices, there's one that direct-to-consumer brands can't shake off entirely: the belief that the customer is always right. Or, more commonly, DTC startups like to follow in the footsteps of Amazon, and declare themselves customer-obsessed. But when customers behave badly, it's often retail workers that pay the price. In order for DTC startups to truly champion diversity and inclusion, they have to train their store staff on how to handle racist or belligerent customers.

  • AUG 14, 2020

    A domino effect: How USPS delays may hurt e-commerce startups

    During the coronavirus pandemic in the U.S., e-commerce has become a lifeline for businesses to stay afloat when many non-essential stores were ordered closed in April and May. Now, changes being made to one of the backbones of the e-commerce landscape -- the United States Postal Service -- threatens to create a huge headache for retail and consumer startups .In mid-July, many businesses started reporting packages were taking longer to get to customers, which coincided with new cost-cutting measures that the USPS could implement. Every e-commerce business, from mom-and-pop shops all the way up to Amazon rely on the USPS in some way, and any changes in service or prices could wreck havoc on small e-commerce businesses.

  • AUG 12, 2020

    Everything you need to know about the state of the American mall

    Even before the pandemic, malls were struggling to figure out how to diversify their tenant mix as fewer shoppers visit department stores. Now, the pandemic has exacerbated those challenges, as existing tenants stopped paying rent during March and April store shutdowns, and other types of businesses are concerned about signing new leases before the pandemic is over. Simon Property Group and Macerich's earnings from this week show that there is still a long ways for mall owners to go on the road to recovery.

  • MAR 03, 2021
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