ON DTC AND HOME IMPROVEMENT

Something like 20% of homeowners are digital natives, and yet the one store we still go to is Home Depot. This is something that it’s not obvious you can bring online, but you can.

A unique advantage of DTC brands stems from their ability to have one-to-one relationships with their consumers while capturing valuable data that would be impossible to glean at traditional retail.

The DTC winner of 2020 would be the marketplace for home improvement, interior design, and hardware. All of the modern brands in a central location. Key design categories: 1/ interior plants, pottery 2/ standing desks, ergonomic tools 3/ cookware storage 4/ children's edu tools

There are several big trends impacting consumer brands. New brands like Dollar Shave Club that are skipping traditional retail and building their own relationships with consumers are threatening traditional brands in categories they never thought possible. At the same time, while brands need to sell through Amazon because of its reach with consumer

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It’s acquisition vehicles like Mavely, BrandBox, DTX Company’s Unbox, and Showfields that may influence this shift in the agency business model by providing meaningful opportunities for CAC diversification. And if so, the DTC era may finally begin to solve its profitability problem. This could be the first step towards improving valuation multiples... See more

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.