Startups

DTCs are facing a copycat problem

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.

Latest Stories

  • SEP 05, 2019

    To acquire customers more cheaply, DTC brands are partnering up

    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.

  • SEP 03, 2019

    Maveron co-founder Dan Levitan’s VC playbook for identifying brands that can scale

    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. 

  • AUG 30, 2019

    Six months in, Target’s third-party marketplace has added few new sellers

    In February, Target announced that it was launching a third-party marketplace called Target+ to grow its online assortment in areas like home, toys, electronics and sporting goods. At the time, Target's chief marketing and digital officer Rick Gomez said in a blog post that the marketplace was "in its earliest stages," and that Target would keep the program invite-only to focus on building curated assortment. Still, six months later, the amount of products available through Target+ remains limited.

  • AUG 29, 2019

    Explainer: From CAC to AOV, what DTC’s hottest buzzwords really mean

    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.

  • AUG 28, 2019

    As DTC brands mature, private equity takes on an increasingly important role

    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.

  • AUG 23, 2019

    ‘Systemic issue’: The customer acquisition challenges DTC brands face go beyond cost

    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.

  • AUG 22, 2019

    ‘Tons of fear’: How DTC companies are dealing with Trump’s tariffs

    As Trump's increased China tariffs continue to take a toll on the US economy, many smaller DTC businesses are faced with some tough choices. But for most, it's not simply as easy as moving manufacturing out of the country.

  • AUG 20, 2019

    SmileDirectClub’s IPO filing highlights promises, pitfalls for DTC health care industry

    SmileDirectClub will soon be one of the few companies that started as an online-only, direct-to-consumer startup to make it to the public markets, setting the bar for what it will take for other DTC companies, particularly in the health care industry, to go public. On Friday SmileDirectClub -- which sells teeth alignment kits direct-to-consumer -- made its confidential IPO filing public, revealing that the company generated $423 million in revenue in 2018, with a net loss of $74.8 million.

  • AUG 15, 2019

    An online wine company is using customer data to develop products and gain traction with retailers

    After gathering customer insight from subscribers around the types of wines they prefer over Vinebox’s past three-and-a-half years, and seeing users buying more cases of the individual pours outside of the three-month delivery cycle, Vinebox founder Matt Dukes launched Usual Wines, a private-label brand of wines made in-house. Usual wines, which launched eight months ago, are sold in packs of six and can be bought online and at Usual’s first branded store and wine bar in San Francisco.

  • AUG 12, 2019

    Why Winc is turning to equity crowdfunding to raise capital

    Wine company Winc just launched its equity crowdfunding campaign on the Seedinvest platform, in the hopes that it can raise a Series D fund with the help of its fanbase. Winc has raised nearly $50 million from traditional investors. Now, it's turning to everyday people with some extra cash to spare asking them to invest in the growing company too. It's a rare move for the alcohol space, but follows in the footsteps of a few interesting brands.

  • AUG 09, 2019

    Beverage brands are leaning on CBD and cannabis to drive buzz

    This past week, Arizona Iced Tea announced plans to launch a partnership with a cannabis company. It follows a few other bigger brands dipping their toes in the cannabis space. While ingredients like THC and CBD are trending culturally, the companies trying to launch these products have an unclear regulatory road ahead.

  • AUG 09, 2019

    Faced with rising online costs, DTC brands are now spending more money on traditional marketing channels

    Brands transitioning their marketing strategies to account for broad awareness-raising channels – which yield little to no insight into attribution or customer data – have to navigate an awkward growing-up phase that requires a reallocation of resources, navigating partnerships, new methods for tracking results and back-end preparation to meet a new level of customer response.

  • SEP 13, 2019
    Sponsored

    Hyper-personalization: How advertisers can get personal without getting creepy

    Clumsy hyper-targeting hits consumers with the creep-factor. Hyper-personalization is different, incorporating factors like timing and frequency to create an ad experience that's actually welcome. Download the guide to learn more.

Future Leader Awards
Nov 15, 2019

Recognizing the next generation of leaders across media and marketing, fashion, beauty and retail.

Submit Now