Now that a few high profile DTC brands have been punctured on the public market and the economy is crashing, VC-driven DTC business model will likely go into its own recession. Without DTC, there is an opportunity for a variety of smaller, more sustainably funded players who do not seek hypergrowth.

Direct to Consumer (DTC) Brands are Replacing Specialty Brands

Witte says direct-to-consumer sales, as measured by weekly revenue run rate, are up 4X since before COVID-19, and average order value is up 30%. It recently launched subscriptions, which now represent more than 30% of orders. And the company’s “direct-to-business” wholesale e-commerce channel is up 3X since April, which has helped Recess get into... See more