DTC Brands Are Looking To Sell In Retail Stores
Rob HolthauseMarch 18, 2019
In a recent blog post I discussed the benefits of selling direct to consumer (DTC) and why large legacy brands would want to explore their own sales channels outside of traditional retailers. There is, of course, a counterpoint to this: Digitally Native Vertical Brands (DNVB’s) that have exclusively sold DTC are now looking to sell in retail stores. If there are significant benefits to selling DTC, why would some DTC brands look to sell through retailers?
As it turns out, there’s some real appeal to newer online brands to sell their products in traditional retail outlets. Despite typically having large customer bases and thriving subscription programs, selling in stores like Target and Walmart offers the opportunity to get your brand in front of a much larger group of potential customers. Brands like Native, Quip, Harry’s, and others are now available at Target, and are significantly more visible to the public as a result.
This is case where both the brand and the retailer benefit. Brands can see more customers driven to their site to sign up for subscription – in the case of toothbrush company Quip, for example, the initial purchase happens at Target and customers then go to Quip’s site to sign up for the brush head subscription. Being available in stores also convinces more customers to buy, as many shoppers prefer to have an item in their hands before making a buying decision.
Retailers can used the brands’ established status and buzz to lure more customers into their stores, where they’re likely to make other purchases. Retailers may also structure the partnership to share data and customer insights, and in some cases, even revenue from driving customers to subscribe on a brand’s DTC site. Offering popular modern brands also keeps the retailer looking relevant, and provides more variety and value to their customers.
As eCommerce and retail continue to evolve, expect to see more partnership between DTC brands and retailers to better serve and delight their customers while also driving sales.