We’ve recently passed the one-year mark for the pandemic economy, with all of its volatility, uncertainty and disruptions. Among the most emphatic takeaways is that direct to consumer (D-to-C) has proven incredibly resilient through these changes. In some sense, it seems obvious in retrospect, that brands built on the potent combination of direct distribution, online commerce, and people-based marketing would succeed in the stay-at-home reality. Our own results have borne that out; 90 percent of the D-to-C brands increased January 2021 sales over their 2020 pre-pandemic levels.
However, it would be wrong to portray this success as simply a matter of luck and circumstances. As with almost every business, 2020 forced D-to-C brands to make difficult strategic decisions across supply chain, assortment, marketing, HR — the kind that would keep any startup founder up at night.
2021 will require the same attention to detail. For D-to-C companies to extend their 2020 growth trajectory, they’ll need to embark on bold yet proven strategies in new product verticals, new marketing channels, and even launching new brands.
Launch New Product Verticals
Product category expansion is a proven best practice for any growing brand, and it’s absolutely essential for any growing D-to-C. The more products they have across categories and price points, the higher response rates across the board. Higher response rates improve new customer acquisition return on investment and expand and enrich…