With the direct-to-consumer funding heyday now over, DTC brands need to turn a profit. Unlike their revenue-obsessed counterparts, DTC pioneers Marine Layer, Meundies and Trinny London offer a blueprint for achieving both top- and bottom-line growth.
DTC fashion brands that are turning a profit while others flounder maintain a laser focus on costs, right from a customer’s first order — a business practice that forms a critical part of their unit economics.
Profit-minded start-ups like like Marine Layer, Meundies and Trinny London aim to reengage existing customers, which is more cost effective than relying on new customers for top- and bottom-line growth.
Pioneering DTC brands that opened their own retail stores or forged retail partnerships soon after launch have been shielded from the precarity of the digital advertising market.
Mounting digital marketing costs and e-commerce readjustments have put the viability of pure direct-to-consumer business models into question. The State of Fashion 2023 reveals that most brands will need to diversify their channel mix beyond DTC to generate growth.