Trends #0028 โ€” Subscription DTC

๐Ÿ” Problem

Big brands make products for everyone. And no one.

๐Ÿ’ก Solution

DTC brands move fast to serve niches. Some automate shopping with subscriptions.

๐Ÿ“˜ Terms

DTC (Direct-to-consumer)

Selling directly to buyers. Without retailers or wholesalers. This broad term, technically, includes software, media and more. But we’ll focus on physical goods.

Subscription

Recurring purchases and delivery of goods. Removing the need to re-order.

๐Ÿ Players

Subscription DTC Brands

๐Ÿ”ฎ Predictions

  • Competition on paid platforms will shift spend to influencers. Some will eventually ask… Why take endorsements instead of equity?
  • Products will be copied. Few DTC brands are original. Winners nail acquisition.
  • Current customers will guide brand expansions. Quip sells dental insurance. Theragun sells CBD products. Dollar Shave Club sells toothpaste. Brand expansions increase CLV and justifiable CAC. Building barriers for new players to compete in paid channels. (Via Ethan Jones)

โ˜๏ธ Opportunities

๐Ÿ”‘ Key Lessons

๐Ÿ˜  Haters

“DTC isn’t all about about acquisition. Brand matters too.”
Brand matters to current customers. Similar brands fight for new customers. With adspend as ammo. Organic acquisition is one of the only functions that hasn’t been commoditized.

๐Ÿ”— Links

  1. On Linear Commerce โ€” Build an audience before a product.
  2. Bringing DTC Brands into the Subscription Space โ€” Creative ways for non-subscription DTC brands to adopt subscription models.
  3. Casper and DTC Brands โ€” It’s dangerous to compete on adspend alone.



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