Morning Brew - ☕ Run DTC

Brands trying to make DTC more profitable.
July 25, 2023

Retail Brew

Good afternoon, Brewers. HBO’s Succession helped make “quiet luxury” somewhat popular in some circles, but now that trend appears to have spilled over into other areas like home design. A $220 light switch recently set ablaze the comments section of a New York Times piece, and if you don’t think we’re going to take advantage of this new trend in a future Friend or Faux?, you’re clearly not familiar with our operation.

In today’s edition:

—Andrew Adam Newman, Jeena Sharma, Erin Cabrey

DTC

Direct action

Richard Kestenbaum (left) and Jose Nino (right) on stage at The Lead Innovation Summit Richard Kestenbaum (left) and Jose Nino (right). Sara Kerens/The Lead Innovation Summit

Some of the earliest and best-known direct-to-consumer online brands were famous—and successful—because they chose that lane and owned it, forging a strong and unfettered connection with consumers. Warby Parker did it with eyeglasses in 2010, Harry’s with razors in 2012, and Casper with mattresses in 2014.

But much has changed in the last decade, and there’s a growing consensus that for many new and emerging brands, taking a DTC-only approach is putting all your eggs in one shopping basket.

“DTC was never a story, or a dream, or a business,” Richard Kestenbaum, co-founder and partner at Triangle Capital LLC, wrote in Forbes in February. “It’s a channel and as channels go, it’s a good channel, sometimes a great one, but the idea of DTC as a strategy was always a distraction.”

Kestenbaum continued that brands that started as online DTC absolutists increasingly are opening stores and partnering with retailers—for the best of all rationales.

“That’s where the customers are,” he wrote.

So it was fitting that at a recent conference in New York, The Lead Innovation Summit, Kestenbaum was tapped to lead a session on making DTC more profitable, and the brand execs he jawboned with were DTC enthusiasts who also took a broader, omnichannel approach to sell their wares.

Keep reading here.—AAN

     

FROM THE CREW

How to work with influencers

The Crew

Did you know 69% of creators report that a brand’s relevancy to their audience is a top priority when considering a partnership? Each influencer has a unique voice, perspective, and ability to connect with audiences ranging from niche communities to millions-strong followings. Tapping into these influencers and forging powerful partnerships can be a major boost for your brand.

But creating a beneficial partnership can be challenging, so Marketing Brew created a comprehensive guide to drafting contracts, measuring KPIs, and picking the right influencers to represent your brand. Equip your team with the essential knowledge to venture into this thriving landscape.

Download the guide here.

MARKETING

Smokin’

Lyst hottest brands list Lyst

It’s that time of the year again…when Lyst releases its hottest brands list for the second quarter.

And we have some clear winners starting with Spanish luxury brand Loewe, which topped the hottest (20) brands list. The trendy retailer climbed 13 places over the past 12 months to reach the top spot and owes its success to being able to cater to “the imagination of different cohorts of customers,” Lyst noted. Demand for its cult-like products like its Anagram tank top and the Loewe basket bag also contributed to its rise, per Lyst.

Closely following Loewe were usual suspects like Prada, Versace, Miu Miu, and Bottega Veneta. Louis Vuitton earned the 11th hottest brand spot right after newly minted creative Pharrell Williams’s debut menswear collection.

One of the most surprising names on the list, however, was Balenciaga, which after a dramatic drop down the hottest brands ranking over the last two quarters, came in at No. 16. Its ascent back into popularity comes after the brand was embroiled in a string of controversies but has since seen celebrities like Michelle Yeoh, Isabelle Huppert, and Alton Mason wear its products on red carpets again.

Keep reading here.—JS

     

STORES

Palm reading

A woman scanning her hand at Amazon One terminals Halie LeSavage

For Whole Foods shoppers, payment is now in the palm of their hands.

Amazon announced in a July 20 blog post that it’s expanding Amazon One, its palm recognition payment tech that links credit card info to a shopper’s “palm signature,” to all 500+ US Whole Foods locations by the end of the year. The tech was already available at ~200 stores, and Whole Foods CTO Leandro Balbinot said in the post that “customers love the convenience it provides.”

  • Amazon Prime members can also link their accounts to their Amazon One profile to secure discounts with a wave of their hand, the company said.

Amazon introduced the tech in 2020—and Retail Brew tested it out in 2021. Since then, more and more businesses, in addition to its own Amazon Fresh stores, have added the biometric checkout tech, which Amazon says has now been used more than 3 million times.

Keep reading here.—EC

     

SWAPPING SKUS

Today’s top retail reads.

Tides turn: Severing ties with Ye probably wasn’t the easiest financial decision at the time, but Adidas has now made more than half a billion dollars from unsold Yeezy shoes. (the Financial Times)

Dig in: For the uninitiated, it may come as a surprise to find out that Macy’s has a fairly robust restaurant business that goes back more than a century. (The Takeout)

Ready to go: For the first time since 2002, the number of Americans between 25 and 54 employed or looking for new jobs has never been higher, and it’s helping offset the flood of baby boomers who are retiring. (the Wall Street Journal)

Strategize: When planning strategically, everyone knows what they’re driving toward. Our Strategic Planning course can help you and your team get back on track—making your business run smoother. Register now.

(Marketing) relationship coach: Elevate your strategy with relationship marketing and improve how your brand interacts with customers on a foundational level. Turn customers into loyal advocates with a crash course from Marigold’s comprehensive ebook.*

*This is sponsored advertising content.

JOBS

Are you an exec looking to make your next career move, or join a Board of Directors? We've partnered with ExecThread, where you can find thousands of confidential job opportunities & Board roles that aren’t listed anywhere else. Check out roles like:

SOCIAL GATHERING

A roundup of our favorite retail multimedia content from across platforms this week—from TikTok to Twitter. We’re keeping you hip, and you’re welcome.

The real deal: Macy’s touted its new slew of private label brands, so a retail expert decided to pay a visit to the department store’s 34th Street location in Manhattan and came away more than impressed. (Jeff Sward on LinkedIn)

It’s a Barbie world: This past weekend was obviously huge for Mattel and the Barbie brand, and the company got to celebrate the movie’s success at the Nasdaq. (@mattel on Instagram)

Check, please: Frustration over tip culture can be precisely summed up by one woman’s experience at an Austin bar over the weekend, and based on the number of likes, a lot of people understand this feeling. (@heyalexfriedman on Twitter, or X?)

High fashion: The Twitter menswear guy (who you only know about against your will) had some insight into “timeless styles” and how men can develop their own, unique fashion taste. (@dieworkwear on X, formerly known as Twitter)

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Written by Andrew Adam Newman, Jeena Sharma, and Erin Cabrey

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