There's a lot of downward pressure on direct-to-consumer (DTC) brands right now, as some of the bigger names of the last few years (think Peloton, Casper, Warby Parker) appear to be faltering. This is calling the sustainability of the DTC business playbook into question.
VANCOUVER, British Columbia, July 6, 2022 /PRNewswire-PRWeb/ -- There's a lot of downward pressure on direct-to-consumer (DTC) brands right now, as some of the bigger names of the last few years (think Peloton, Casper, Warby Parker) appear to be faltering. This is calling the sustainability of the DTC business playbook into question.
And with the added uncertainty of looming recessionary headwinds, DTC brands are under pressure to respond with more mature, more diverse marketing tactics and strategies. Unless they do, they're unlikely to push into big gains.
HipArray's latest report – The Future of DTC Marketing – addresses the shortcomings of the existing DTC playbook, while providing new perspectives on the tools DTC natives and larger (incumbent) brands use to fuel high growth rates.
In the context of HipArray's proprietary "Brand Growth Framework," it is clear that DTC tactics are too narrow and short-sighted. They're great for igniting start-up momentum, but inadequate for sustained growth and scale. Digital-focused, performance-centric DTC tactics play only a small part in the larger growth marketing playbook.
HipArray's "Brand Growth Framework" identifies six key characteristics for accelerating and sustaining growth. These six characteristics are essential ingredients for both DTC brands and larger, incumbent brands.
When it comes to making big gains in brand equity, there are three characteristics that help move DTCs from start-up to growth-stage (and help mature brands recapture high-growth potential):
- Owning a culture / category: When a brand becomes synonymous with a culture, and becomes intertwined with it at every level.
- Brand bravery: Brands that have a purpose and resolve to take a stand. These brands venture big gains with bold, compelling campaigns.
- New media mindset: Investing into underpriced platforms ahead of the curve, with well-timed investments earning brands big rewards.
"Having evaluated thousands of DTC and mature brands, these three characteristics standout as success factors. These are the tools that the best brands are using to expand and consolidate successes with consumers. The best part is these characteristics represent a bridge between start-up energy and potential, with the gravitas of market leaders" says Chris Baker, HipArray founder.
"DTC serves as a great startup toolkit, but they tend to stall out at around USD10 million using performance tactics alone. To manage growth they have to think bigger. Having worked with high growth brands like Nike and Disney, we've seen how these characteristics drive sustained value and impact with customers."
Media Contact
Mo Feyzbakhsh, HipArray, 1 7787886424, [email protected]
Chris Baker, HipArray, 7787511315, [email protected]
SOURCE HipArray
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