What it takes to win at DTC in 2024 👀

Welcome to our first sunny edition of our DTC Creator newsletter! As you enjoy the sunshine this week, let’s talk about piercing brands for adults, concerns around promo codes and genderless fragrance brand collaboration. Read on!

What it takes to win at DTC in 2024

The DTC landscape has been rocky, but some emerging fashion brands are rewriting the playbook on how to thrive.

Strategic moves: Fresh-faced startups are dodging the pitfalls that snagged their predecessors by taking bold steps like Larroudé, a shoe brand that slashed its manufacturing costs by opening its own factory in Brazil. This not only cut costs but accelerated production times, proving that control over the supply chain is a game-changer.

Customer-centric innovation: Bandit Running is another example, winning big by bringing customers into the fold with its design process. By hosting sessions where customers directly influence product design, Bandit ensures its products are exactly what consumers want, translating to quick sell-outs and strong customer loyalty.

The future of DTC: In an era where every penny and every second counts, DTC brands are finding that success means focusing on profitability right from the start. Investors are looking for brands that not only grow but do so profitably.

For DTC brands aiming to make it big in 2024, the winning formula includes mastering supply dynamics, engaging deeply with customers, and keeping an unwavering focus on the bottom line.

Studs: How the ear-piercing DTC retailer markets itself as an adult Claire’s for Gen Z & Millennials

Studs revolutionizes piercing for adults with cute studios and relevant marketing, targeting the gap between mall shops and tattoo parlors.

1. Gap in the market: Studs co-founders Anna Harman and Lisa Bubbers noticed a lack of modern, trendy piercing studios catering to the 18 to 35 demographic. This led them to create Studs, offering safe, needle-based piercings with stylish jewelry selections.

2. Know-your-audience marketing strategies: Studs' success lies in understanding its audience and creating an appealing retail experience. From buzzy launch events to collaborations with cultural influencers, their marketing focuses on being culturally relevant and Instagram-worthy.

3. Keep the future plans aligned: Studs plans to expand its retail presence, targeting demographic-relevant areas like New York City's Meatpacking District. Additionally, they're launching a luxury pop-up called "Fancy Studs," showcasing high-end piercing assortments in a carefully designed space.

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How promo code leaks are squeezing margins at online retailers

Promo codes are intended as sweet deals to hook new customers, but when they leak, they become major pain points for direct-to-consumer brands. Originally used to track marketing effectiveness—from influencer shout-outs to podcast ads—these codes often escape into the wild via sites like Honey and RetailMeNot, causing unexpected sales spikes and profit dips.

Industry challenge: Brands face a tricky balancing act. The rise of promo code leaks forces them to play a high-tech game of whack-a-mole, constantly monitoring and managing their dissemination. Despite tools like Shopify’s backend limitations, leaks are persistent, as highlighted by Anyday founder Steph Chen.

Looking ahead: The future sees DTC brands grappling with two fronts: stopping leaks and maintaining promotional benefits. This might mean investing in costly tech solutions or forming strategic partnerships to better control promo dispersal and secure profit margins.

Bottom line: In the fast-evolving DTC landscape, managing promo codes has become an essential, if cumbersome, task. Brands are learning to navigate the complexities of digital discounts, striving to keep them beneficial without letting them undercut the bottom line.

Snif, genderless DTC fragrance brand, enters Brick and Mortar through Ulta partnership

Snif, a genderless DTC fragrance brand, partners with Ulta Beauty, expanding its reach to 525 stores and online.

1. DTC expansion: Snif's collaboration with Ulta reflects a broader trend of DTC brands exploring new sales channels to connect with a wider audience.

2. Customer demand: Co-founder Bryan Edwards highlights the partnership as a response to community demand for a retail presence, leveraging Ulta's reach and brand.

3. Innovative model: Snif's genderless fragrances and try-before-you-buy approach, coupled with pandemic-driven consumer needs, contribute to its success.

Snif's alliance with Ulta signifies a strategic move to bridge the DTC and traditional retail spheres, tapping into a growing fragrance market while meeting evolving consumer preferences.

That’s a wrap!

We’ll see you again on Friday 👋