In the first decade of the direct-to-consumer boom, brands raised money on fast growth and vague promises of profitability in the long term. Now, the golden age of DTC funding is over. To survive today, DTC fashion and beauty brands need to turn a profit, not just grow sales — which is easier said than done. Those who do so should find ways to keep costs down and re-engage existing customers, rather than relying on a constant stream of new ones.

“DTC has never been synonymous with profits … There’s a massive market correction: there’s rising costs and recessionary fear. Profits are the primary sign of a healthy business that can weather economic parity,” said Malique Morris, BoF direct-to-consumer correspondent.

On the latest BoF Live, Shira Feuer, chief marketing officer of UK-based beauty brand Trinny London and Benjamin Bond, Kearney e-commerce consultant join Morris and BoF deputy editor Brian Baskin unpack BoF’s latest case study, How to Build a Profitable DTC Brand.