added by sari · updated 2y ago
A Potentially Unpopular Opinion on the Future of DTC
- Warby Parker might have started the DTC trend, but the true awakening came with Dollar Shave Club and Harry’s interrupting the somewhat ridiculous Gillette domination of razor blades at mass/retail. Would-be entrepreneurs and VC investors mistook this unique category situation (single dominant incumbent player, ridiculously high margins, small/ligh... See more
from A Potentially Unpopular Opinion on the Future of DTC by Luke Weston
sari added 2y ago
- (2) Scalability - can you stretch the company to scale its potential? (note: this can be any combination of additional sales channels beyond DTC and/or additional relevant product categories, and/or new geographies)
from A Potentially Unpopular Opinion on the Future of DTC by Luke Weston
sari added 2y ago
- Better aesthetics, usually yes. More interesting brand messaging, usually yes. But how about viable business models, scalability, and competitive advantage?
from A Potentially Unpopular Opinion on the Future of DTC by Luke Weston
sari added 2y ago
- (1) Viable business model - can you make decent profits on the unit economics? (note: this means that DTC winners will, by and large, be premium-priced, with decent basket sizes, with efficient cost structures, and have repeat business with a customer rather than just one-off transactions)
from A Potentially Unpopular Opinion on the Future of DTC by Luke Weston
sari added 2y ago
- (3) Competitive advantage - do you have something unique which is hard for others to replicate? (note: brand positioning/messaging can be a feature of this, and first-mover advantage definitely helps if it gets traction, however ideally it will have novel features or capabilities that are challenging to replicate and solve an unmet consumer need)
from A Potentially Unpopular Opinion on the Future of DTC by Luke Weston
sari added 2y ago
- How should we be thinking about all of these DTC brands? It’s actually through 3 fairly simple criteria that we should evaluate any type of business, whether DTC or otherwise:
from A Potentially Unpopular Opinion on the Future of DTC by Luke Weston
sari added 2y ago