No. 317: The DTC Playbook Is a Trap

The direct-to-consumer wave began in the twenty-tens as a new generation of startups promising to “disrupt” traditional industries for consumer goods. Instead of leaving the market to century-old stalwarts like Gillette, for example, a company like Dollar Shave Club, founded in 2011, would set up its own supply chains to manufacture razors; add cle... 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.