2PM - Letter No. 900: Sheridan's DTC Gamble

Linear Commerce: A former journeyman actor created one of the highest-potential modern brands and online marketplaces of today and he may not have to spend much on traditional advertising or paid marketing at all.

Taylor Sheridan, the creator of Yellowstone, created a multimedia universe like no one in or around Hollywood. With the launch of 6666steak.com (and 6666gritandglory.com), he has a new way to monetize his love for the American west. What better than steaks and beer?

Sheridan is a creative phenom by any measure. The former 'Sons of Anarchy' and 'Veronica Mars' actor set aside his "failed acting career" to focus on telling tales from the modern American frontier (as he likes to frame it) while sharing those stories through the lens of how the past meets the present. The actor became a real name in Hollywood by hastily writing the screenplay for 'Sicario' (2015) in just four months and then having it in production shortly thereafter. He went on to write 'Hell or High Water' in 2016. For the former, he earned wide critical and commercial success. For the latter, he received an Academy Award nod for best original screenplay. (Read More...)

Direct-to-consumer is dying. it's time for a new paradigm

Top Story / WIRED: In the past decade, storied brands like meal-replacement Huel and men's grooming company Harry's built multibillion-dollar retail businesses by using social media and digital-first advertising to sell directly to consumers online, without the need for middlemen. These brands were exemplars of a new form of retail, called direct-to-consumer (DTC).

We've referred to the shift away from DTC and towards holistic growth as "Omnichannel Nirvana." 

It's inflation, not contagion, that's driving online commerce

Data / Marketplace: In the United Kingdom, Canada and other countries, Monday was Boxing Day - basically the second day of Christmas. For the American consumer, you could call Dec. 26 "Re-Boxing Day" - the day we put the sweater that's a few sizes too big back in the box to be returned.

Buy Now, Regret Later?

Relevant News / eCom grew 10.6% this holiday season: Companies in the "buy now, pay later" business have one message for consumers and a very different one for Wall Street and retailers. They tell consumers that B.N.P.L. is a safe, responsible way to shop. Meanwhile, they tell investors and retailers that B.N.P.L. is a good way to get people to spend more.

There are several ways that BNPL can lead to growing, seasonal retail sales despite inflationary pressures:

1. Increased purchasing power: BNPL allows consumers to purchase items that they may not have been able to afford upfront, potentially increasing their purchasing power.

2. Convenience: BNPL can be a convenient option for consumers who want to purchase items but do not have the funds available at the time of purchase.

3. Increased accessibility: BNPL can make purchasing goods and services more accessible to people who may not have access to traditional forms of credit, such as credit cards.

4. Marketing: Retailers may use BNPL as a marketing tool to attract customers and encourage them to make purchases.

It is worth noting that while BNPL can be a convenient and helpful option for some consumers, it is important for individuals to carefully consider their financial situation before using this type of financing, as it can also carry risks if not used responsibly.

Updated For December 24: The list experienced some major turnover last week with a number of companies entering the top 20 for the first time, this week seems to have stabilized a bit. Join here to gain access to this database or here for lifetime access. 

Is your DTC brand recession-ready?

DTC economics / Transform: No one needs to be told today that consumer wallets are stressed. Inflation is running high, interest rates are rising, and a recent survey by the National Association for Business Economics found that more than half of US economists believe that the US is headed into a recession in the next 12 months.

How 'Ivy' clothes became a century-spanning fashion mainstay

Fashion Retail / Marketplace: A Ralph Lauren polo shirt. A varsity jacket. Khakis and loafers. Are these clothes business casual? Date night attire? Is this a "preppy" look? As it happens, the answer is kind of all of the above, and it's because they share a common fashion ancestor: Ivy.

The DTC state of the union

eCommerce / Fast Company: It’s true that the economy is slowing, costs have risen, and performance has been sluggish—not too surprising after a few years of slower retail growth. It seems we marketers have been simultaneously waiting for this shoe to drop and foolishly hoping it wouldn’t. While this trend is concerning, we believe that the DTC channel still offers significant opportunities for brands with long-term omnichannel aspirations. 

How Amazon fits into the new DTC playbook

Retail Media / BoF: In 2017, executives at Mizzen+Main unearthed some hard-to-ignore data. More than 1,000 people a month were searching for the menswear brand's business casual button-up shirts, chinos and other products on Amazon. At the time, the brand didn't sell its clothes on Amazon, but it couldn't deny there was fierce demand for its goods on the world's biggest e-commerce marketplace.

Editor's Note: This tracks. Amazon is quickly becoming a top three advertiser. Here's all about retail media networks. 

Elon Musk doesn't understand how online advertising is sold

Advertising / BoingBoing: This audio clip from a Twitter meeting shows that Elon Musk doesn't understand how Twitter earns money from advertisers. I do not know if this is an engineer or an ad salesperson trying to explain to Musk why he is talking out of his ass, but Musk certainly wasn't listening and wanted the person cut...

Our take on the recent Twitter chaos: Free Speech and Twitter