DTC Brands & DNVBs

The incubation of DTC Brands within Legacy Brands continues to yield poor results

I realized I made an error to FB/IG total and that the Mktg Cost line item should have been allocated to FB/IG And added $100 AOV to the title to better ground the % variable costs The story is the same, but its important to use this illustration vs OP as the mental model

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

A thread about paint 👨‍🎨

@drinkdirtylemon is a DTC brand founded in 2015 that sells some pretty cool beverages in some pretty cool ways. A thread on the business and their pricing:

High-Level Overview on N...

There’s no digitally-native voice or marketplace retailer for home improvement projects.

1/ The golden era of DNVB is over. The times of inefficient growth enabled by first movers advantage & low ad-costs are over. Rising ad-costs will require brands to focus on operational excellence to maintain strong LTV:CAC ratios to sustain growth.

(1/14)After observing $250M+ in ad spend on @facebook, I’ve noticed that DTC brands that scale very quickly have a few things in common: - High margins & high AOV - Business model is focused on retention - Cross-border activation is simple - Product is a consumable & impulse buy

Hmmm. Maybe. 1) i'm not that convinced that DTC is going to kill a lot of incumbents. If we look at share loss for Pepsi, Unilever, etc- much of that is not DTC, it is products/brands that meet unique needs of today's fragmenting consumers.