Momofuku faces backlash đŸŒ¶

Plus: 3 tips for DTC brands this week...

Author

Wishu
April 19, 2024

Welcome to another edition of our DTC Creator newsletter. This week we are sharing our favorite DTC news highlights from top selling beauty brands hitting UK Sephoras to David Chang’s problematic trademark attempts. Let’s dive in


3 tips for DTC brands this week:

Wanna ground your business back to basics? If you’ve got the following three elements covered and considered, don’t fret - you’re on the right track!

  1. How do you connect with your customers emotionally when you aren’t the one handing over the parcel in the flesh? 

  2. How does your packaging impact business costs and customer experience? 

  3. Have you budgeted for damaged and lost items? 

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DTC News Highlights

  1. David Chang’s Momofuku Faces Backlash for Trying to Trademark ‘Chili Crunch’: The Asian-American Community Say it's Unfair to Small Businesses 

Celebrity chef David Chang of restaurant and condiment company Momofuku has halted the pursuit of trademarking "Chili Crunch" after criticism from the Asian American and Pacific Islander communities. 

The DTC arm of Momofuku, selling pantry items, aims to protect its brand but is criticized for stifling competition in the chili crunch market.

Momofuku sent cease-and-desist letters to businesses using similar terms, but Chang apologized for any harm caused and acknowledged the oversight of the term's generic nature. The company, aiming to distinguish its product from others like "Chili Crisp," faces criticism for its trademark efforts, viewed as aggressive towards small businesses. 

  1. Topicals: Black-owned DTC Beauty Brand Dropped in the UK This Week 

Topicals is a Black-owned, DTC skincare brand. Having already sold via Sephora in the US, it is now set to enter Sephora stores in the UK. after a product reformulation that the British government required for distribution, according to Beauty Independent. Topicals claimed to be the fastest-growing DTC skincare brand at American Sephora stores in 2022.

  1. Rent the Runway Stock Prices Quadruples

The clothing rental brand saw its stock price quadruple last week after CEO Jennifer Hyman mentioned doubling down on AI search during an optimistic quarterly call. Its stock price initially rose from around $5 per share to more than $19 per share after the call, although it has fallen some since. As of yesterday (April 18) the shares ended the trading day at $11.28 apiece.

Other marketing news

  1. Beautycounter sells: The Carlyle Group, which purchased this DTC clean beauty brand in 2021, is selling Beautycounter back to its founder Gregg Renfrew

  2. More Skims: Kim Kardashian’s DTC shapewear brand is continuing its Nordstrom partnership, this time with a pop-up in Nordstrom’s New York flagship store, “The Corner.” The pop-up opens from next month. 

  3. WhatsApp launches QR ticketing system for DTC buses in Delhi NCR: WhatsApp on Wednesday, launched a WhatsApp-based QR ticketing service that allows DTC commuters in the Delhi NCR region to book their tickets through. WhatsApp’s ticketing systems will help simplify the transport service for commuters by allowing them to book their tickets from anywhere. Delhi NCR’s DTC is the first state bus network to have accepted and implemented this service.
    The feature is currently available only on DTC buses in Delhi NCR.